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Netwealth Group Ltd. (AU:NWL)
ASX:NWL
Australian Market

Netwealth Group Ltd. (NWL) AI Stock Analysis

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AU

Netwealth Group Ltd.

(Sydney:NWL)

Rating:66Neutral
Price Target:
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. (NWL) vs. iShares MSCI Australia ETF (EWA)

Netwealth Group Ltd. Business Overview & Revenue Model

Company DescriptionNetwealth 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 MoneyNetwealth 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
78
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue255.25M207.01M172.86M141.98M121.34M
Gross Profit164.98M118.89M98.32M80.36M65.84M
EBITDA124.95M0.000.0078.43M66.15M
Net Income83.37M67.15M55.55M54.10M43.66M
Balance Sheet
Total Assets189.49M161.88M136.20M131.12M111.89M
Cash, Cash Equivalents and Short-Term Investments127.36M109.97M89.46M81.96M86.70M
Total Debt14.91M13.59M15.09M16.43M5.07M
Total Liabilities44.97M38.84M31.96M37.94M35.86M
Stockholders Equity144.52M123.05M104.24M93.18M76.03M
Cash Flow
Free Cash Flow85.07M73.58M56.61M36.68M58.49M
Operating Cash Flow89.98M79.23M59.60M37.81M59.41M
Investing Cash Flow-5.11M-4.99M-3.69M-3.22M1.22M
Financing Cash Flow-67.68M-53.13M-48.95M-38.68M-33.57M

Netwealth Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.62
Price Trends
50DMA
29.72
Positive
100DMA
29.06
Positive
200DMA
28.39
Positive
Market Momentum
MACD
0.41
Positive
RSI
60.62
Neutral
STOCH
64.74
Neutral
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 32.62 is above the 20-day moving average (MA) of 31.65, above the 50-day MA of 29.72, and above the 200-day MA of 28.39, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUMFG
74
Outperform
€1.44B6.7023.27%6.21%-9.29%12.94%
AUHUB
71
Outperform
€6.90B117.5211.42%0.56%22.81%32.47%
67
Neutral
$16.51B11.239.71%3.96%11.61%-10.70%
AUNWL
66
Neutral
AU$7.99B77.7165.17%1.08%24.24%33.94%
AUCGF
61
Neutral
AU$5.50B37.553.85%3.63%17.95%-34.24%
AUPPT
57
Neutral
€2.08B-24.47%6.70%5.36%-846.00%
AUAMP
47
Neutral
$3.16B17.634.84%2.50%19.36%1261.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NWL
Netwealth Group Ltd.
32.62
10.72
48.95%
AU:MFG
Magellan Financial Group Ltd
8.49
0.59
7.51%
AU:HUB
HUB24 Limited
86.64
40.41
87.42%
AU:AMP
AMP
1.26
0.19
17.76%
AU:CGF
Challenger
8.01
1.31
19.61%
AU:PPT
Perpetual Limited
18.14
-1.91
-9.53%

Netwealth Group Ltd. Corporate Events

Netwealth Group Ltd. Discloses Shareholding and Economic Exposure
May 2, 2025

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
Apr 9, 2025

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
Apr 4, 2025

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
Mar 19, 2025

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
Feb 19, 2025

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
Feb 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 24, 2025