Netwealth Group Ltd. (NWL) AI Stock Analysis

• Market Cap: AU$5.97B
• Dividend Yield: 1.45%
• Average Volume (3M): 820.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: 28.29%
• EPS Growth: 39.39%
• Country: AU
• Employees: 664
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): >-0.01
• Shares Outstanding: 245,392,700
• 10 Day Avg. Volume: 699,179
• 30 Day Avg. Volume: 820,116
• PEG Ratio: 1.71
• Price to Book (P/B): 41.27
• Price to Sales (P/S): 26.31
• P/FCF Ratio: 69.09
• 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$30.35
• Price Target Upside: 22.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.53
• Revenue Forecast (FY): AU$388.54M

• Rating: 64 Neutral
• Price Target: AU$27.00 ▲(8.83% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is supported by strong financial performance (profitable growth, strong cash flow, and low leverage). Offsetting this, valuation is demanding (very high P/E with only a modest yield) and technical signals are mixed with negative MACD and longer-term moving averages still above the price.

Positive Factors

Asset-light platform model & adviser partnerships

Netwealth’s platform fee model and partnerships create recurring, scalable revenue with low incremental costs. Adviser and institutional relationships drive distribution stickiness and client retention, supporting durable AUM growth and margins as adoption of digital platforms increases.

Strong free cash flow generation

A 23.2% increase in free cash flow and high operating cash conversion indicates the business reliably turns earnings into cash. That cash supports reinvestment in technology, organic growth initiatives, and provides a buffer for downturns, enhancing long-term operational resilience.

Conservative leverage with high ROE

Very low debt-to-equity and a strong 58.5% ROE show efficient capital use and financial flexibility. Conservative leverage reduces solvency risk while high ROE signals strong profitability on shareholder capital, enabling sustainable reinvestment and strategic optionality over time.

Negative Factors

Material decline in EPS growth

A roughly 44% decline in EPS growth is a durable concern, suggesting margin pressure, one-off items or operational challenges that reduce earnings power. Sustained negative EPS growth can constrain reinvestment, dividend capacity and weaken the long-term earnings trajectory if not reversed.

Revenue tied to AUM and market cycles

Heavy reliance on asset-based fees makes revenue and fee income sensitive to market returns and net flows. Structural AUM cyclicality can produce volatile top-line and fee revenue across market cycles, reducing predictability of earnings and stressing client retention in downturns.

Trend of rising debt to monitor

Although current leverage is low, management’s gradual debt increase is a persistent risk. If the trend continues it could raise fixed costs, reduce financial flexibility and erode the conservative balance sheet advantage, limiting capacity to invest or weather prolonged stress.

Netwealth Group Ltd. Business Overview & Revenue Model

Company Description

Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. It offers financial intermediation services; superannuation products; managed accounts; and managed funds, as well as investor directed portfolio services. The company also provides investment wrap products for self-managed super fund (SMSF) clients; investment options, such as listed and international securities, managed account models, managed funds, term deposits, premium services, and investor rewards; insurance products; forms and disclosure documents; and resources and tools, as well as insurance, advisory, licensee, and private wealth solutions. In addition, it offers a superannuation master fund, separately managed accounts, and self-managed superannuation and non-custodial administration services; and portfolio management tools, performance tools, investment research tools, and mobile access tools. The company provides its financial services to investors and non-institutional intermediaries, including financial advisers, private clients, and high net worth firms. Netwealth Group Limited was founded in 1999 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Netwealth Group Ltd. generates revenue primarily through fees associated with its investment platform and financial services. Key revenue streams include asset-based fees charged on the funds managed within its investment platform, which represent a percentage of the total assets under management (AUM). Additionally, the company earns performance fees from investment products that exceed specified benchmarks, as well as administration fees for managing superannuation accounts. Significant partnerships with financial advisers and institutions enhance its market reach and client base, contributing to the overall growth in client assets and, consequently, the company's earnings. Furthermore, Netwealth invests in technology to streamline operations and improve service delivery, which helps in retaining clients and attracting new ones, thereby bolstering its revenue generation capabilities.

Netwealth Group Ltd. Financial Statement Overview

Summary

Strong fundamentals overall: healthy revenue growth (8.7%), high profitability margins, and robust cash generation (free cash flow up 23.2%). Balance sheet leverage is conservative (low debt-to-equity), though the noted gradual debt increase is a minor watch item.

Income Statement

Netwealth Group Ltd. has demonstrated strong revenue growth with an 8.7% increase in the latest year. The company maintains high gross and net profit margins, indicating efficient operations and profitability. The EBIT and EBITDA margins are robust, reflecting effective cost management. Overall, the income statement shows a healthy financial performance with consistent growth and profitability.

Balance Sheet

The balance sheet of Netwealth Group Ltd. is solid, with a low debt-to-equity ratio of 0.068, suggesting conservative leverage and financial stability. The return on equity is impressive at 58.5%, indicating strong profitability relative to shareholder equity. The equity ratio is healthy, showing a good proportion of equity financing. However, the slight increase in debt over the years could be monitored for future risk.

Cash Flow

The cash flow statement reflects strong operational cash generation, with a significant increase in free cash flow by 23.2%. The operating cash flow to net income ratio is high, indicating efficient cash conversion. The free cash flow to net income ratio is also strong, showing that the company effectively translates its earnings into cash. Overall, the cash flow position is robust, supporting ongoing operations and potential growth initiatives.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	354.57M	312.30M	255.25M	207.01M	172.86M	141.98M
Gross Profit	215.03M	312.30M	164.98M	118.89M	98.32M	80.36M
EBITDA	75.63M	162.88M	129.51M	0.00	0.00	78.43M
Net Income	56.76M	116.52M	83.37M	67.15M	55.55M	54.10M
Balance Sheet
Total Assets	306.45M	257.32M	189.49M	161.88M	136.20M	131.12M
Cash, Cash Equivalents and Short-Term Investments	183.43M	173.04M	127.36M	109.97M	89.46M	81.96M
Total Debt	22.96M	13.50M	14.91M	13.59M	15.09M	16.43M
Total Liabilities	156.90M	58.18M	44.97M	38.84M	31.96M	37.94M
Stockholders Equity	149.56M	199.14M	144.52M	123.05M	104.24M	93.18M
Cash Flow
Free Cash Flow	139.62M	118.94M	85.07M	73.58M	56.61M	36.68M
Operating Cash Flow	141.27M	126.84M	89.98M	79.23M	59.60M	37.81M
Investing Cash Flow	-33.56M	-39.50M	-5.11M	-4.99M	-3.69M	-3.22M
Financing Cash Flow	-89.98M	-65.51M	-67.68M	-53.13M	-48.95M	-38.68M

Netwealth Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NWL, the sentiment is Negative. The current price of 24.81 is above the 20-day moving average (MA) of 24.05, above the 50-day MA of 24.72, and below the 200-day MA of 29.91, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NWL.

Netwealth Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWL	64 Neutral	AU$5.97B	-724.26	67.81%	1.45%	28.29%	39.39%
OFX	63 Neutral	AU$132.07M	21.16	9.31%	―	-5.73%	-36.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COG	54 Neutral	AU$313.55M	10.89	12.36%	2.86%	-26.30%	40.12%
PPS	52 Neutral	AU$363.17M	9.65	12.27%	2.81%	24.56%	59.32%
RZI	48 Neutral	AU$59.55M	5.73	-0.15%	―	5.03%	52.31%
FNX	46 Neutral	AU$11.21M	-5.25	-34.88%	―	43.00%	-6078.57%

Netwealth Group Ltd. Corporate Events

Netwealth Discloses Control Over 0.61% of Its Shares With No Net Economic Exposure

Netwealth Group Ltd has disclosed to the ASX that, as at 31 January 2026, the company and its controlled entities had the power to control the voting or disposal of 1,494,505 of its own ordinary shares, representing 0.61% of both its total voting and total issued share capital. The group also reported that it held no net economic exposure to its own shares, highlighting that the relevant holdings are primarily custodial and trustee-related positions within the Netwealth Superannuation Master Fund, rather than proprietary positions, thereby signalling minimal balance-sheet risk or self-exposure arising from these interests.

The most recent analyst rating on (AU:NWL) stock is a Hold with a A$27.00 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Posts Record Inflows as Managed Accounts Drive 23.6% FUA Growth

Netwealth Group Limited reported another strong quarter to 31 December 2025, with total funds under administration (FUA) rising 23.6% year-on-year to $125.6 billion, driven by a second consecutive record in quarterly custodial inflows of $8.4 billion. Net FUA flows reached $4.2 billion, or a record $4.6 billion when excluding $0.4 billion of deliberate custodial outflows from two low-revenue institutional accounts, highlighting a strategic tilt toward higher-margin business and continued support from both existing and new financial intermediaries. Funds under management climbed to $31.4 billion, up 30.6% on the prior corresponding period, underscored by record managed account net flows of $1.8 billion and a 32.3% increase in managed account FUM to $27.5 billion, reflecting advisers’ growing adoption of the platform’s managed account capabilities. Account numbers rose 13.7% over the year to 172,221, with average FUA per account up 8.7% to $729,000, reinforcing Netwealth’s momentum in capturing higher-value clients and strengthening its competitive position in Australia’s wealth platform market.

The most recent analyst rating on (AU:NWL) stock is a Hold with a A$27.00 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth to Compensate Members Affected by Fund Collapse

Netwealth Group Limited has reached an agreement with ASIC to compensate members impacted by the collapse of the First Guardian Master Fund, with a total compensation of $101 million to be credited to affected accounts by January 2026. This decision reflects Netwealth’s commitment to member support and operational integrity, while the financial impact of the compensation is set to be absorbed through a combination of cash and debt, leaving the company in a strong financial position and reaffirming its FY26 guidance for future operations.

The most recent analyst rating on (AU:NWL) stock is a Buy with a A$31.50 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Group Director’s Interest Update

Netwealth Group Limited announced a change in the director’s interest, with Matthew Alexander Max Heine acquiring 30,926 performance rights. This update reflects internal adjustments in the company’s executive holdings, potentially impacting the company’s governance and signaling confidence in its future performance.

The most recent analyst rating on (AU:NWL) stock is a Hold with a A$33.50 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Group Issues Performance Rights Under Employee Incentive Scheme

Netwealth Group Ltd. announced the issuance of 30,926 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions until the restriction period ends, reflecting the company’s commitment to incentivizing its workforce and aligning employee interests with company performance.

The most recent analyst rating on (AU:NWL) stock is a Hold with a A$33.50 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.