WAM Research Ltd. (WAX) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 8.23%
• Average Volume (3M): 224.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -14.69%
• EPS Growth: -13.28%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 208,455,300
• 10 Day Avg. Volume: 316,692
• 30 Day Avg. Volume: 224,728
• PEG Ratio: -0.64
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 4.93
• P/FCF Ratio: 14.52
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: AU$1.50 ▲(23.97% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial positioning (notably a debt-free balance sheet) and attractive valuation (low P/E and high dividend yield). Offsetting these positives, technicals indicate muted/soft momentum and the financial history shows meaningful cyclicality and inconsistent cash flow conversion.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides strong financial flexibility and reduces solvency risk, supporting long-term stability and growth potential.

High Profitability Margins

High profitability margins indicate efficient operations and strong market positioning, enhancing the company's ability to generate sustainable earnings.

Dividend Commitment

Consistent dividend payouts reflect financial health and management's commitment to returning value to shareholders, fostering investor confidence.

Negative Factors

Revenue Volatility

Volatile revenue trends can undermine earnings stability and predictability, posing challenges for long-term financial planning and investor assurance.

Inconsistent Cash Flow

Inconsistent cash flow conversion can affect liquidity and the ability to fund operations or investments, impacting long-term financial health.

Cyclicality in Financial Performance

Cyclicality in financial performance reflects vulnerability to market cycles, which can lead to unpredictable earnings and affect strategic planning.

WAM Research Ltd. Business Overview & Revenue Model

Company Description

WAM Research Limited is a closed-ended equity mutual fund launched and managed by MAM Pty Limited. The fund invests in public equity markets of Australia. It makes its investments in companies primarily engaged in the industrial sector. The fund invests in value and growth stocks of small to medium-cap companies. It benchmarks the performance of its portfolio against the S&P/ASX All Ordinaries Accumulation Index. The fund conducts in-house research to make its investments. It was formerly known as Wilson Investment Fund Limited. WAM Research Limited was formed on May 10, 2002 and is domiciled in Australia.

How the Company Makes Money

WAM Research Ltd. primarily generates revenue through the sale of its advanced analytics and data solutions. The company's key revenue streams include subscription fees for its software platforms, consulting services for customized analytics solutions, and licensing arrangements for its proprietary technology. Additionally, WAM Research Ltd. engages in strategic partnerships with other technology firms and industry leaders to expand its market reach and enhance its offerings, thus contributing significantly to its earnings.

WAM Research Ltd. Financial Statement Overview

Summary

Strong overall financial quality led by a debt-free balance sheet and very high FY2025 profitability (EBIT margin ~85%, net margin ~62%). The main constraint on the score is cyclicality/volatility (revenue down ~22% in FY2025 and prior loss years) plus uneven cash conversion (negative operating cash flow in FY2021 and FY2023).

Income Statement

Profitability is a clear strength: the most recent year (FY2025) shows very high operating profitability (EBIT margin ~85%) and strong net profitability (net margin ~62%). However, the top line is volatile for an asset manager, with revenue down ~22% in FY2025 after a sharp rebound in FY2023–FY2024, and the history includes loss years (FY2020 and FY2022), which lowers confidence in earnings stability.

Balance Sheet

The balance sheet is conservatively positioned with zero debt across all periods provided, giving the company strong financial flexibility and low solvency risk. Equity is sizable and has grown versus FY2022–FY2024, and returns on equity are positive in recent years (FY2023–FY2025), though they can swing meaningfully (including negative ROE in FY2020 and FY2022), reflecting a business model tied to market cycles.

Cash Flow

Cash generation is positive in the last two years (operating cash flow and free cash flow both positive in FY2024–FY2025) with modest improvement year-over-year. The main weakness is volatility: operating cash flow was negative in FY2021 and FY2023 despite positive net income, indicating working-capital/timing effects and less consistent cash conversion through the cycle.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	46.27M	54.24M	25.79M	-27.62M	82.33M
Gross Profit	46.27M	54.24M	23.29M	-30.49M	82.33M
EBITDA	0.00	44.90M	-239.33K	-31.07M	-228.25K
Net Income	28.49M	32.47M	16.85M	-20.70M	52.29M
Balance Sheet
Total Assets	243.28M	233.64M	203.56M	204.50M	263.54M
Cash, Cash Equivalents and Short-Term Investments	233.81M	217.68M	183.82M	182.56M	248.21M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	17.07M	18.97M	4.43M	5.68M	27.91M
Stockholders Equity	226.21M	214.66M	199.14M	198.83M	235.63M
Cash Flow
Free Cash Flow	15.70M	17.27M	-10.13M	44.68M	-5.86M
Operating Cash Flow	15.70M	17.27M	-10.13M	44.68M	-5.86M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-17.23M	-16.70M	-16.29M	-15.89M	-15.65M

WAM Research Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:WAX, the sentiment is Negative. The current price of 1.21 is above the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.23, and above the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.14 is Positive, neither overbought nor oversold. The STOCH value of 8.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:WAX.

WAM Research Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAX	72 Outperform	―	-19.84	12.92%	8.23%	-14.69%	-13.28%
MAM	72 Outperform	AU$65.32M	2.97	32.22%	6.39%	22.67%	19.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SB2	61 Neutral	AU$60.54M	19.67	3.57%	6.89%	30.36%	-31.47%
CIW	53 Neutral	AU$28.88M	46.88	2.42%	2.03%	18.17%	―
CVC	46 Neutral	AU$261.27M	-8.76	0.31%	―	36.51%	―

WAM Research Ltd. Corporate Events

WAM Research Posts Strong Long-Term Returns but Flags Dividend Dependence on FY26 Performance

WAM Research reported net tangible assets of 100.80 cents per share before tax and 100.32 cents after tax for December 2025, reflecting a $1.0 million tax payment during the month, with total assets of $209.4 million and an investment portfolio that has returned 14.6% per annum since July 2010, outperforming the S&P/ASX All Ordinaries Accumulation Index. The company confirmed a FY25 full-year dividend of 10.0 cents per share, 60% franked, translating into an 8.2% dividend yield and 10.3% grossed-up yield based on the month-end share price of $1.225, but noted that maintaining dividends at current levels will depend on future portfolio performance, additional profits reserves and franking credits. Operationally, the portfolio declined over the month, with Maas Group Holdings contributing positively after winning a significant AI-related infrastructure contract that expands its digital infrastructure exposure, while Regis Healthcare detracted following asset sales in Far North Queensland and the resignation of its CEO, prompting WAM Research to reduce its position amid increased uncertainty.

The most recent analyst rating on (AU:WAX) stock is a Buy with a A$1.50 price target. To see the full list of analyst forecasts on WAM Research Ltd. stock, see the AU:WAX Stock Forecast page.

Gentrack disclosure: Wilson Asset Management exits substantial shareholding

Gentrack Group Limited filed a statutory notice under the Corporations Act reporting that Wilson Asset Management Group ceased to be a substantial shareholder as of 3 September 2025; the disclosure records changes in relevant interests and associations and is signed by the company’s chief operating officer in December 2025. The announcement is an administrative shareholder disclosure that alters the known composition of the register and could affect voting power, investor sentiment and governance oversight, although the filing does not provide detailed share counts or consideration, limiting immediate conclusions for stakeholders and market impact.

WAM Research Reports Mixed Portfolio Performance Amid Market Fluctuations

WAM Research Limited reported a decrease in its investment portfolio for November 2025, with mixed performance from its holdings. Gentrack Group contributed positively with strong financial results and promising growth prospects in the utilities and airport software sectors. In contrast, Temple & Webster Group saw a decline in its share price due to slower-than-expected revenue growth, raising concerns about its future growth trajectory. The company’s ability to maintain its dividend payouts is contingent on generating additional profits and franking credits, highlighting the importance of continued positive investment performance.

WAM Research Limited Announces 2025 AGM Results

WAM Research Limited announced the results of its 2025 Annual General Meeting, detailing resolutions and proxies received from shareholders. This announcement underscores the company’s commitment to transparency and shareholder engagement, which may positively influence its market positioning and stakeholder relations.

WAM Research Outperforms Market with Strategic Investments

WAM Research Limited announced an investment update highlighting its portfolio’s performance, which outpaced the S&P/ASX All Ordinaries Accumulation Index. The company declared a final dividend of 5.0 cents per share, partially franked at 60%, paid on 28 October 2025. The ability to maintain dividend payouts is contingent on generating additional profits and franking credits. Notable contributions to the portfolio’s success came from Autosports Group and Regis Healthcare, both of which engaged in strategic mergers and acquisitions that bolstered their market positions and financial performance.

WAM Research Updates Dividend Distribution Details

WAM Research Limited has announced an update regarding its dividend distribution, specifically related to the Dividend Reinvestment Plan (DRP) price. This update pertains to the dividend for the six-month period ending on June 30, 2025, with a record date of October 16, 2025. The announcement reflects the company’s ongoing commitment to providing shareholder value and maintaining transparency in its financial operations.

WAM Research Limited Announces 2025 AGM Details

WAM Research Limited has announced the details of its 2025 Annual General Meeting (AGM), scheduled for November 19, 2025, at the Museum of Sydney. The meeting will cover the consideration of financial statements, the adoption of the Remuneration Report, and the re-election of Mr. Julian Gosse as a director. The AGM will be accessible both in-person and online, allowing shareholders to participate remotely. The resolutions discussed at the meeting, including the advisory vote on the Remuneration Report and the re-election of directors, are crucial for the company’s governance and strategic direction.