WisdomTree, Inc.
WisdomTree, Inc. Fundamental Analysis
WisdomTree, Inc. (WT) shows strong financial fundamentals with a PE ratio of 20.28, profit margin of 22.10%, and ROE of 26.49%. The company generates $0.5B in annual revenue with strong year-over-year growth of 22.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WT's fundamental strength across five key dimensions:
Efficiency Score
WeakWT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWT trades at attractive valuation levels.
Growth Score
ModerateWT shows steady but slowing expansion.
Financial Health Score
ModerateWT shows balanced financial health with some risks.
Profitability Score
ExcellentWT achieves industry-leading margins.
Key Financial Metrics
Is WT Expensive or Cheap?
P/E Ratio
WT trades at 20.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WT's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values WisdomTree, Inc. at 5.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.56 times EBITDA. This is generally considered low.
How Well Does WT Make Money?
Net Profit Margin
For every $100 in sales, WisdomTree, Inc. keeps $22.10 as profit after all expenses.
Operating Margin
Core operations generate 35.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.49 in profit for every $100 of shareholder equity.
ROA
WisdomTree, Inc. generates $7.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WisdomTree, Inc. generates strong operating cash flow of $155.24M, reflecting robust business health.
Free Cash Flow
WisdomTree, Inc. generates strong free cash flow of $155.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.09 in free cash annually.
FCF Yield
WT converts 6.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How WT Stacks Against Its Sector Peers
| Metric | WT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.28 | 18.99 | Neutral |
| ROE | 26.49% | 824.00% | Weak |
| Net Margin | 22.10% | 1603.00% | Weak |
| Debt/Equity | 2.31 | 0.99 | Weak (High Leverage) |
| Current Ratio | 1.75 | 621.71 | Neutral |
| ROA | 7.21% | -24664.00% (disorted) | Weak |
WT outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WisdomTree, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
67.29%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
255.15%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
154.32%
Industry Style: Value, Dividend, Cyclical
High Growth