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WAM Strategic Value Ltd (AU:WAR)
ASX:WAR
Australian Market

WAM Strategic Value Ltd (WAR) AI Stock Analysis

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AU

WAM Strategic Value Ltd

(Sydney:WAR)

Rating:71Outperform
Price Target:―
WAM Strategic Value Ltd's strong financial performance, highlighted by robust profitability and a solid balance sheet, is tempered by significant cash flow challenges. Technically, the stock shows neutral momentum, with valuation metrics indicating an attractive buying opportunity, particularly for dividend-seeking investors.

WAM Strategic Value Ltd (WAR) vs. iShares MSCI Australia ETF (EWA)

WAM Strategic Value Ltd Business Overview & Revenue Model

Company DescriptionWAM Strategic Value Ltd (WAR) is an investment company that specializes in managing a diversified portfolio of undervalued companies primarily within the Australian market. The company operates in the financial services sector, focusing on identifying and investing in listed businesses that offer potential for capital growth and income generation. WAM Strategic Value Ltd aims to deliver superior long-term returns to its shareholders through disciplined investment strategies and active management.
How the Company Makes MoneyWAM Strategic Value Ltd makes money through the appreciation of its investment portfolio and the dividends received from the companies it invests in. The company generates revenue by strategically buying undervalued stocks and selling them at higher prices as their market value increases. Additionally, WAM Strategic Value Ltd earns income from dividends distributed by the companies within its portfolio. The company's revenue model is further supported by strategic partnerships and collaborations with financial analysts and industry experts, which enhance its capability to identify lucrative investment opportunities. The company's earnings are influenced by market conditions, the performance of its investment portfolio, and its ability to effectively manage and execute its investment strategies.

WAM Strategic Value Ltd Financial Statement Overview

Summary
WAM Strategic Value Ltd shows strong profitability and growth in its income statement, with impressive margins and no leverage risk, supporting a stable balance sheet. However, cash flow challenges persist, with negative operating and free cash flows indicating cash management inefficiencies.
Income Statement
80
Positive
The company demonstrated a strong revenue growth rate of 72.45% from 2023 to 2024. Gross Profit and Net Profit Margins are robust at 100% and 57.69%, respectively, indicating efficient cost management. The EBIT margin is also impressive at 74.77%, showcasing operational efficiency. However, the absence of EBITDA data prevents a full margin analysis.
Balance Sheet
75
Positive
The company maintains a solid financial structure with a zero debt-to-equity ratio, reflecting no leverage risk. The equity ratio stands at a strong 95.28%, indicating a high level of financial stability. Return on Equity (ROE) is healthy at 9.50%, suggesting effective use of equity. However, a significant portion of assets is tied up in cash, which may limit asset diversification.
Cash Flow
60
Neutral
The company faces challenges with negative operating and free cash flows, with free cash flow declining by 96.37% from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation from operations. The absence of capital expenditures suggests potential underinvestment in growth opportunities.
BreakdownTTMJun 2024Jun 2023Jun 2022
Income Statement
Total Revenue35.59M38.34M22.23M-20.49M
Gross Profit35.59M38.34M20.38M-22.69M
EBITDA0.000.000.00-4.65M
Net Income20.68M22.12M15.79M-14.49M
Balance Sheet
Total Assets232.79M244.35M219.02M211.27M
Cash, Cash Equivalents and Short-Term Investments35.18M17.89M211.25M198.91M
Total Debt0.000.000.000.00
Total Liabilities2.23M11.54M675.69K2.41M
Stockholders Equity230.56M232.81M218.34M208.86M
Cash Flow
Free Cash Flow29.72M-32.56M-16.58M-142.36M
Operating Cash Flow29.72M-32.56M-16.58M-142.36M
Investing Cash Flow0.000.000.000.00
Financing Cash Flow-11.26M-7.19M-5.37M221.95M

WAM Strategic Value Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.10
Price Trends
50DMA
1.09
Positive
100DMA
1.08
Positive
200DMA
1.09
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
59.68
Neutral
STOCH
72.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAR, the sentiment is Positive. The current price of 1.1 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.09, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 59.68 is Neutral, neither overbought nor oversold. The STOCH value of 72.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:WAR.

WAM Strategic Value Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUBKI
72
Outperform
23.614.44%4.36%-4.33%-13.07%
AUWAR
71
Outperform
9.549.16%5.48%52.01%34.58%
AUARG
68
Neutral
27.813.96%3.74%-3.41%-4.97%
AUAFI
68
Neutral
30.733.68%3.26%1.81%0.50%
AUSOL
66
Neutral
$15.67B27.535.85%2.06%36.14%-3.50%
62
Neutral
AU$9.99B8.0410.82%5.10%33.02%38.31%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:WAR
WAM Strategic Value Ltd
1.10
0.07
6.80%
AU:SOL
Washington H. Soul Pattinson and Co.
42.61
9.91
30.31%
AU:AFI
Australian Foundation Investment Co. Ltd.
7.37
0.48
6.97%
AU:ARG
Argo Investments Limited
9.09
0.83
10.05%
AU:BKI
BKI Investment Co. Ltd.
1.79
0.18
11.18%

WAM Strategic Value Ltd Corporate Events

WAM Strategic Value Outperforms Market Despite Portfolio Decline
Apr 11, 2025

WAM Strategic Value Limited reported a decrease in its investment portfolio for March 2025, yet it outperformed the S&P/ASX All Ordinaries Accumulation Index, which fell by 3.5%. The Australian Unity Office Fund positively impacted the portfolio, while Regal Asian Investments was a detractor due to a significant decline in its share price and net tangible assets. The announcement highlights the company’s resilience amidst market fluctuations and provides insights into its strategic investments and their performance.

WAM Strategic Value Ltd Director Increases Shareholding
Apr 8, 2025

WAM Strategic Value Ltd announced a change in the director’s interest, with Director Glenn Burge acquiring 20,000 additional ordinary shares, bringing his total to 153,500 shares. This on-market purchase, valued at $20,400, reflects the director’s increased stake in the company, potentially signaling confidence in the company’s future performance and stability in the financial market.

WAM Income Maximiser Launches $510 Million Share Offer
Apr 1, 2025

WAM Income Maximiser Limited, in collaboration with Wilson Asset Management, is offering up to 340 million fully paid ordinary shares at $1.50 each, aiming to raise a maximum of $510 million. This initiative is designed to provide monthly income and capital growth by investing in high-quality Australian companies. The offer includes a priority allocation for Wilson Asset Management Family members, a broker firm offer, and a general offer. Investors are advised to consult the Prospectus and Target Market Determination available on the company’s website before making investment decisions.

WAM Income Maximiser IPO Opens Early, Exceeds Minimum Subscription
Mar 12, 2025

WAM Income Maximiser Limited has launched its initial public offering (IPO) earlier than expected, with the offer exceeding its minimum subscription on the opening day. The company aims to provide investors with monthly franked dividends and capital growth over the medium to long term by investing in high-quality equities and corporate debt. A significant portion of the funds raised, $180 million out of $510 million, is allocated to existing shareholders of Wilson Asset Management’s various listed investment companies, reflecting strong investor demand and confidence in the company’s strategy.

Wilson Asset Management Launches WAM Income Maximiser to Address Market Gap
Mar 5, 2025

Wilson Asset Management has announced the launch of its ninth listed investment company, WAM Income Maximiser, which aims to provide monthly franked dividends and capital growth by investing in high-quality equities and corporate debt. The initiative addresses a gap in the Australian equity market following changes to bank hybrids, offering a new avenue for franked income and diversification. A priority offer of $180 million has been allocated to the Wilson Asset Management Family, with the total IPO capital raising capped at $510 million.

WAM Strategic Value Ltd to Host FY2025 Interim Results Webinar
Mar 5, 2025

WAM Strategic Value Ltd announced an upcoming webinar to discuss its FY2025 interim results, where key executives will provide updates on their investment portfolio and market opportunities. This event will include a Q&A session, offering stakeholders insights into the company’s strategic positioning and the listed investment company sector.

WAM Strategic Value Reports Strong February Performance Amid Market Weakness
Mar 5, 2025

WAM Strategic Value Limited reported a 1.2% increase in its investment portfolio for February 2025, outperforming the broader market indices. The company’s portfolio benefited from investments in global LICs and LITs, as well as the Dusk Group, a specialty retailer of home fragrance products, which saw a significant share price increase. The strong performance of WAM Global and other investments contributed to the company’s success, with increased dividends and special dividends declared, enhancing shareholder returns.

WAM Strategic Value Boosts Interim Dividend Amid Strong Portfolio Performance
Feb 27, 2025

WAM Strategic Value Ltd has announced a 33.3% increase in its fully franked interim dividend to 3.0 cents per share, reflecting strong investment portfolio performance with a 16.9% return in the year ending December 2024. This decision underscores the company’s commitment to delivering growing dividends to shareholders, despite broader market declines. The company’s strategic focus on discounted asset plays has allowed it to provide capital protection and maintain a competitive edge in the investment sector. The narrowing of share price discounts to NTA and strong global investment performance have further positioned WAM Strategic Value to benefit from continued interest in global LICs and LITs.

WAM Strategic Value Ltd Reports Decline in Half-Year Profits but Maintains Dividend Payout
Feb 27, 2025

WAM Strategic Value Ltd reported a significant decrease in its financial performance for the half year ending December 31, 2024, with revenue down by 25.1% and net profit after tax falling by 22.5% compared to the previous year. Despite the downturn, the company announced a fully franked interim dividend of 3.0 cents per share, maintaining its commitment to shareholder returns through its Dividend Reinvestment Plan, which allows dividends to be reinvested in the company’s shares.

WAM Strategic Value Ltd Announces Dividend Distribution
Feb 27, 2025

WAM Strategic Value Ltd has announced a dividend distribution of AUD 0.03 per share for its ordinary fully paid securities, with the ex-date set for May 1, 2025, and payment scheduled for May 29, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders and may positively impact investor sentiment and market positioning.

Wilson Asset Management Increases Stake in Salter Brothers
Feb 20, 2025

Wilson Asset Management Group has increased its voting power in Salter Brothers Emerging Companies Limited from 10.51% to 11.72%. This change in their substantial holding indicates a strategic move to enhance their influence within the company, potentially affecting governance and future corporate strategies.

WAM Strategic Value Boosts Portfolio with 50% Dividend Increase
Feb 13, 2025

WAM Strategic Value Limited announced a significant increase in its investment portfolio for January 2025, driven by key contributions from the Perpetual Equity Investment Company and the US Masters Residential Property Fund. The company declared a 50% increase in its fully franked full-year dividend, reflecting strong portfolio performance and favorable market conditions, which could enhance investor returns and solidify its market position.

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 30, 2025