Netwealth Group Ltd. (NWL) AI Stock Analysis

• Market Cap: AU$7.03B
• Dividend Yield: 1.1%
• Average Volume (3M): 582.33K
• Price to Earnings (P/E): 68.9
• Beta (1Y): 1.49
• Revenue Growth: 24.24%
• EPS Growth: 33.94%
• Country: AU
• Employees: 664
• Sector: Financial
• Sector Strength: 89
• Industry: Financial - Capital Markets
• EPS (TTM): 0.42
• Shares Outstanding: 244,931,300
• 10 Day Avg. Volume: 419,985
• 30 Day Avg. Volume: 582,328
• PEG Ratio: 2.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$26.51
• Price Target Upside: -7.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

Netwealth Group Ltd. receives a solid overall score, driven by strong financial performance characterized by robust revenue growth, profitability, and financial stability. However, technical analysis indicates mixed signals, and valuation metrics suggest the stock may be overvalued, warranting cautious optimism. The absence of earnings call and corporate event data does not affect the primary analysis, but keeps the focus on financial health and market indicators.

Netwealth Group Ltd. Business Overview & Revenue Model

Company Description

Netwealth Group Ltd. (NWL) is a financial services company based in Australia, specializing in wealth management solutions. The company provides a diverse range of investment products and services aimed at helping clients achieve their financial goals. Netwealth offers platform services for investment management, superannuation, and managed accounts, catering to both financial advisors and individual investors.

How the Company Makes Money

Netwealth Group Ltd. generates revenue primarily through fees associated with its investment platform services. The company earns money by charging administration fees, investment fees, and transaction fees when clients utilize its platform for managing their investments and superannuation funds. Netwealth's revenue model is largely dependent on the funds under administration (FUA), as the fees are often calculated as a percentage of the total FUA. Additionally, the company benefits from partnerships with financial advisors and institutions, which help to expand its client base and increase the volume of assets managed on its platform.

Netwealth Group Ltd. Financial Statement Overview

Summary

Netwealth Group Ltd. exhibits strong financial performance across income, balance sheet, and cash flow metrics. Revenue and profit growth demonstrate robust operational execution, while a low debt-to-equity ratio ensures financial stability. Consistent cash flow performance supports operational health and future growth potential.

Income Statement

Netwealth Group Ltd. has demonstrated strong revenue growth with a 23.31% increase from 2023 to 2024. Gross profit margin stands at 64.62%, and net profit margin is 32.65%, indicating efficient cost management and profitability. The EBIT margin of 52.80% further supports robust operating performance. However, the EBITDA margin is not available for the latest period, which could provide additional insights into operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 76.25%. The debt-to-equity ratio is low at 0.10, highlighting prudent leverage management. Return on equity (ROE) is impressive at 57.70%, reflecting strong profitability relative to shareholder equity. Overall, the financial stability is commendable, although the total debt has increased slightly from the previous year.

Cash Flow

The company shows a healthy cash flow position with a 15.61% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.08, suggesting efficient conversion of net income into cash flow. The free cash flow to net income ratio is 1.02, indicating effective cash management. The cash flow stability supports ongoing operational and financial health.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
255.25M	207.01M	172.86M	141.98M	121.34M
	Gross Profit
164.98M	118.89M	98.32M	80.36M	65.84M
	EBIT
134.76M	90.10M	78.73M	74.58M	60.30M
	EBITDA
124.95M	0.00	0.00	78.43M	66.15M
	Net Income Common Stockholders
83.37M	67.15M	55.55M	54.10M	43.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.36M	109.97M	89.46M	81.96M	86.70M
	Total Assets
189.49M	161.88M	136.20M	131.12M	111.89M
	Total Debt
14.91M	13.59M	15.09M	16.43M	5.07M
	Net Debt
-111.76M	-95.90M	-73.29M	-65.00M	-80.44M
	Total Liabilities
44.97M	38.84M	31.96M	37.94M	35.86M
	Stockholders Equity
144.52M	123.05M	104.24M	93.18M	76.03M
Cash Flow		Free Cash Flow
85.07M	73.58M	56.61M	36.68M	58.49M
	Operating Cash Flow
89.98M	79.23M	59.60M	37.81M	59.41M
	Investing Cash Flow
-5.11M	-4.99M	-3.69M	-3.22M	1.22M
	Financing Cash Flow
-67.68M	-53.13M	-48.95M	-38.68M	-33.57M

Netwealth Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NWL, the sentiment is Positive. The current price of 28.69 is above the 20-day moving average (MA) of 26.81, above the 50-day MA of 26.90, and above the 200-day MA of 26.95, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NWL.

Netwealth Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUB	76 Outperform	€6.34B	103.79	11.42%	0.60%	22.81%	32.47%
MFG	73 Outperform	€1.37B	6.06	23.27%	8.60%	-9.29%	12.94%
CGF	70 Outperform	$4.96B	33.88	3.85%	6.05%	17.95%	-34.24%
NWL	66 Neutral	AU$7.03B	68.92	65.17%	1.10%	24.24%	33.94%
Sector *	64 Neutral	$12.57B	9.74	7.88%	16985.68%	12.42%	-5.45%
PPT	55 Neutral	€1.87B	―	-24.47%	7.68%	5.36%	-846.00%
AMP	51 Neutral	$3.28B	18.27	4.84%	1.80%	19.36%	1261.54%

Netwealth Group Ltd. Corporate Events

Netwealth Group Ltd. Discloses Shareholding and Economic Exposure

Netwealth Group Ltd. announced that as of April 30, 2025, it holds control over 1,464,882 voting shares, representing 0.60% of its total voting shares. However, the company currently has zero net economic exposure to its shares, indicating no financial gain or loss from share price changes. This disclosure reflects the company’s current position in managing its shareholding and its implications for stakeholders, particularly in terms of voting power and economic exposure.

Netwealth Group Achieves Record FUA Growth Amid Market Volatility

Netwealth Group Limited reported a record-breaking performance for the March 2025 quarter, with Funds Under Administration (FUA) net flows reaching $3.5 billion, marking a 29% increase from the previous corresponding period. The company’s total FUA grew to $104.1 billion, despite a $1.0 billion negative market movement, demonstrating resilience against market volatility. The growth is attributed to high transition rates from existing financial intermediaries and strong new business conversions. The company’s diversified revenue sources and portfolio across various asset classes have contributed to its stability and limited impact on revenue amidst market fluctuations.

Netwealth Group Limited Announces Cessation of Performance Rights

Netwealth Group Limited announced the cessation of 13,783 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This cessation may impact the company’s capital management strategy and highlights the challenges in meeting performance conditions, which could influence investor perception and market positioning.

Netwealth Group Corrects Reporting Error in ASX Filing

Netwealth Group Limited announced a correction to an error in the number of options exercised as previously reported in its Appendix 2A lodged with the ASX. The corrected figures, released on 19 March 2025, show a variance in the options exercised, but the total number of ordinary fully paid securities remains unchanged at 244,931,303. This correction ensures accurate reporting and maintains transparency with stakeholders, reflecting the company’s commitment to governance and operational integrity.

Netwealth Group Ltd. Releases 1H25 Results Presentation

Netwealth Group Ltd. released its first-half 2025 results presentation, emphasizing that the information provided is for general use and not specific investment advice. The release includes various financial data in Australian dollars, though it cautions that past performance is not indicative of future results. The presentation made by the company includes forward-looking statements that involve risks and uncertainties, with no guarantees on future performance.

Netwealth Group Achieves Record Growth in 1H25 Financial Results

Netwealth Group Limited reported robust financial results for the first half of 2025, showcasing significant growth across key metrics. The company achieved record funds under administration net flows of $8.5 billion, a 80.2% increase from the previous year, and total income rose by 26.0% to $155.4 million. This growth led to a 32.8% rise in EBITDA to $78.0 million, with a margin expansion to 50.2%, and a substantial 46.6% increase in NPAT to $57.6 million. The company’s revenue diversification and efficient cost management have strengthened its market position, benefiting both stakeholders and shareholders with a 25% increase in interim dividends.