Netwealth Group Ltd. (NWL) AI Stock Analysis

• Market Cap: AU$6.01B
• Dividend Yield: 1.45%
• Average Volume (3M): 820.12K
• Price to Earnings (P/E): 51.4
• Beta (1Y): 1.86
• Revenue Growth: 28.29%
• EPS Growth: 39.39%
• Country: AU
• Employees: 664
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Capital Markets
• EPS (TTM): 0.24
• Shares Outstanding: 245,370,940
• 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$30.65
• Price Target Upside: 25.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: AU$26.00 ▲(6.21% Upside)

Netwealth Group Ltd. shows strong financial performance with consistent growth and profitability, which is the most significant factor in the overall score. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors contribute to a moderate overall stock score.

Positive Factors

Cash generation

Free cash flow up 23.2% and a high operating cash flow to net income ratio indicate durable cash conversion. This funds tech investments, adviser partnerships and organic growth without reliance on external financing, improving resilience through market cycles over months to years.

Balance sheet strength

A very low debt-to-equity ratio and exceptionally high ROE provide financial flexibility for strategic investment and capital returns. Conservative leverage reduces solvency risk and supports sustained investment in platform capabilities, keeping the business durable across cycles.

Fee-based platform model

A recurring, asset-based fee model plus adviser and institutional partnerships creates sticky revenues and scale benefits. Technology-led servicing increases client retention and margin sustainability, making earnings less cyclical from single-product exposure and supportive of long-term growth.

Negative Factors

Latest revenue growth pace

An 8.7% revenue rise in the latest year, while positive, is a modest pace for a growth platform. Sustaining earnings growth will require continued AUM inflows, higher client penetration or fee expansion; slower top-line momentum can pressure long-term margin and EPS progression.

AUM sensitivity of revenue

Revenue tied to assets under management makes earnings structurally sensitive to market moves and net flows. Prolonged market weakness or outflows can meaningfully reduce fee income and cash generation, increasing earnings volatility and constraining multi‑quarter strategic spend.

Rising debt to monitor

Although leverage is low today, a noted uptick in debt over time warrants monitoring. If debt continues rising, it could reduce financial flexibility and increase interest burden during downturns, limiting ability to invest in technology or support adviser growth when markets are weak.

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

Netwealth Group Ltd. exhibits a strong financial position with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is stable with low leverage, and the company maintains high profitability ratios. Monitoring debt levels and maintaining growth momentum will be key for future performance.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	320.99M	312.30M	255.25M	207.01M	172.86M	141.98M
Gross Profit	204.26M	312.30M	164.98M	118.89M	98.32M	80.36M
EBITDA	166.77M	162.88M	129.51M	0.00	0.00	78.43M
Net Income	116.52M	116.52M	83.37M	67.15M	55.55M	54.10M
Balance Sheet
Total Assets	257.32M	257.32M	189.49M	161.88M	136.20M	131.12M
Cash, Cash Equivalents and Short-Term Investments	173.04M	173.04M	127.36M	109.97M	89.46M	81.96M
Total Debt	13.50M	13.50M	14.91M	13.59M	15.09M	16.43M
Total Liabilities	58.18M	58.18M	44.97M	38.84M	31.96M	37.94M
Stockholders Equity	199.14M	199.14M	144.52M	123.05M	104.24M	93.18M
Cash Flow
Free Cash Flow	125.23M	118.94M	85.07M	73.58M	56.61M	36.68M
Operating Cash Flow	126.84M	126.84M	89.98M	79.23M	59.60M	37.81M
Investing Cash Flow	-39.50M	-39.50M	-5.11M	-4.99M	-3.69M	-3.22M
Financing Cash Flow	-65.51M	-65.51M	-67.68M	-53.13M	-48.95M	-38.68M

Netwealth Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 24.48 is below the 20-day moving average (MA) of 25.39, below the 50-day MA of 26.37, and below the 200-day MA of 30.61, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 15.60 is Positive, 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$6.01B	51.40	67.81%	1.45%	28.29%	39.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OFX	60 Neutral	AU$115.85M	7.14	9.31%	―	-5.73%	-36.36%
COG	55 Neutral	AU$372.87M	18.07	12.36%	2.86%	-26.30%	40.12%
PPS	50 Neutral	AU$368.04M	27.92	12.27%	2.81%	24.56%	59.32%
RZI	48 Neutral	AU$66.13M	-101.13	-0.15%	―	5.03%	52.31%
FNX	46 Neutral	AU$11.21M	-2.15	-34.88%	―	43.00%	-6078.57%

Netwealth Group Ltd. Corporate Events

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.

Netwealth Group Ltd. Secures Shareholder Support at 2025 AGM

Netwealth Group Ltd. announced that all resolutions were successfully passed at their 2025 Annual General Meeting, as determined by a poll. This outcome reflects strong shareholder support for the company’s strategic direction and governance, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (AU:NWL) stock is a Buy with a A$33.10 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Group Ltd Achieves Strong Financial Growth in FY25

Netwealth Group Ltd reported strong financial performance for the 2025 fiscal year, with significant growth in Funds Under Administration (FUA) and Funds Under Management. The company’s market share increased to 8.9%, driven by a 38% capture of industry custodial net flows. Total income rose by 27.1% to $324.4 million, while EBITDA and NPAT saw impressive increases of 31.1% and nearly 40%, respectively. The company also addressed the First Guardian matter, highlighting ongoing efforts to support affected members and collaboration with regulators and the government.

The most recent analyst rating on (AU:NWL) stock is a Buy with a A$33.10 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Group Ltd. Reports Share Control and Economic Exposure

Netwealth Group Ltd. has disclosed its control over 1,559,412 voting shares, representing 0.64% of the total voting shares in the company. Despite this control, the company reports a net economic exposure of zero shares, indicating no financial exposure to changes in share value, which may impact its operational strategy and stakeholder interests.

The most recent analyst rating on (AU:NWL) stock is a Buy with a A$33.10 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Group Ltd. Announces New Securities Quotation on ASX

Netwealth Group Ltd. has announced the application for the quotation of new securities on the Australian Securities Exchange (ASX). The issuance of these securities is part of an employee incentive scheme, indicating the company’s commitment to rewarding and retaining its workforce. This move could potentially strengthen Netwealth’s market position by aligning employee interests with company growth, thereby enhancing operational performance and stakeholder value.

The most recent analyst rating on (AU:NWL) stock is a Buy with a A$34.00 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.

Netwealth Group Ltd. Expands Market Presence with New Securities Issuance

Netwealth Group Ltd. announced the issuance of 12,470 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code NWL. This move is part of the company’s strategy to enhance its market presence and provide additional value to its stakeholders by expanding its securities offerings.

The most recent analyst rating on (AU:NWL) stock is a Buy with a A$34.00 price target. To see the full list of analyst forecasts on Netwealth Group Ltd. stock, see the AU:NWL Stock Forecast page.