Wise PLC Class A (WISE) AI Stock Analysis

• Market Cap: £12.77B
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.54
• Revenue Growth: 34.39%
• EPS Growth: 94.35%
• Country: UK
• Employees: 6,000
• Sector: Technology
• Sector Strength: 40
• Industry: Information Technology Services
• EPS (TTM): 0.42
• Shares Outstanding: 1,025,000,200
• 10 Day Avg. Volume: 2,236,091
• 30 Day Avg. Volume: 1,829,756
• PEG Ratio: 0.24
• Price to Book (P/B): N/A
• Price to Sales (P/S): 14.84
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 4.50
• 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: 1,181.75p
• Price Target Upside: 26.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Wise PLC's overall stock score reflects strong financial performance, driven by robust revenue and profit growth, efficient management, and strong cash generation. However, technical analysis indicates potential downward pressure, and the valuation appears elevated, suggesting caution. The absence of earnings call data and corporate events limits the analysis but does not detract from the company's financial strength.

Positive Factors

Company Expansion

Wise aims to expand its Wise Business service to target larger businesses and offer more features.

Financial Performance

Underlying PBT came in at £125m on 18% margin, 4% ahead and above target range.

Strategic Partnerships

The partnership with Morgan Stanley is expected to be material for Wise Platforms, leading to an additional pipeline built by interested banks.

Negative Factors

Customer Growth

FQ3 trading update showed a disappointing active customer growth.

Margin Pressure

A short-term margin revision might weigh on the story, which is reflected in the price.

Regulatory Challenges

Recent news around Wise's US business includes a CFPI fine.

Wise PLC Class A Business Overview & Revenue Model

Company Description

Wise plc provides cross-border money transfer services for personal and business customers in the United Kingdom, rest of Europe, the Asia-Pacific, North America, and internationally. The company's transfer infrastructure includes Wise Account for international people who need to move and manage money across borders; Wise Business for international businesses need; and Wise Platform that allows businesses and banks to offer their own customers international payments. It also offers online currency exchange services, as well as engages in the investment activities. The company was formerly known as 456 Newco plc and changed its name to Wise plc in June 2021. Wise plc was founded in 2010 and is based in London, the United Kingdom.

How the Company Makes Money

Wise PLC makes money primarily through fees charged on cross-border money transfers. The company offers a competitive exchange rate and charges a transparent, upfront fee that is typically lower than those charged by traditional banks. Key revenue streams include individual customer transfers, business payments, and partnerships with banks and financial institutions that integrate Wise's services into their platforms. Additionally, Wise offers multi-currency accounts that allow users to hold and manage funds in multiple currencies, generating revenue through various account-related fees and foreign exchange services.

Wise PLC Class A Financial Statement Overview

Summary

Wise PLC demonstrates strong financial health with robust revenue and profit growth, efficient operational management, and strong cash flow generation across income statement, balance sheet, and cash flow metrics.

Income Statement

Wise PLC has shown impressive growth in its income statement metrics. The company achieved a high gross profit margin and net profit margin in the most recent year, indicating robust profitability. Revenue growth has been strong, with a significant increase from the previous year. The EBIT and EBITDA margins are healthy, reflecting efficient operational management.

Balance Sheet

The balance sheet reveals a strong equity position with a solid equity ratio, indicating low financial leverage. The debt-to-equity ratio is quite favorable, suggesting prudent financial management. Return on Equity (ROE) is high, illustrating effective use of equity to generate profits.

Cash Flow

Wise PLC exhibits a strong cash flow profile with impressive growth in free cash flow. The operating cash flow to net income ratio is very high, indicating efficient conversion of income to cash. The free cash flow to net income ratio further underscores the company's ability to generate substantial free cash flow relative to its earnings.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.41B	986.30M	563.80M	421.00M	302.60M
	Gross Profit
1.10B	638.20M	369.10M	260.50M	188.10M
	EBIT
501.90M	157.20M	48.70M	44.90M	23.60M
	EBITDA
520.00M	166.90M	62.90M	60.90M	35.60M
	Net Income Common Stockholders
354.60M	114.00M	32.90M	30.90M	15.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.06B	11.48B	7.25B	1.62B	2.19B
	Total Assets
15.14B	11.90B	7.56B	4.30B	2.38B
	Total Debt
224.20M	249.90M	78.50M	78.60M	49.20M
	Net Debt
-836.90M	-7.43B	-5.98B	-807.10M	-2.03B
	Total Liabilities
14.16B	11.33B	7.16B	4.02B	2.18B
	Stockholders Equity
979.90M	576.90M	409.20M	285.30M	196.80M
Cash Flow		Free Cash Flow
3.24B	3.91B	3.13B	2.05B	1.17B
	Operating Cash Flow
3.25B	3.92B	3.14B	2.07B	1.19B
	Investing Cash Flow
-142.60M	-2.59B	-490.40M	-671.80M	-20.90M
	Financing Cash Flow
-125.60M	153.90M	-1.30M	24.80M	31.20M

Wise PLC Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 935.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WISE, the sentiment is Neutral. The current price of 935 is below the 20-day moving average (MA) of 937.65, below the 50-day MA of 990.49, and above the 200-day MA of 852.20, indicating a neutral trend. The MACD of -11.03 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 49.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:WISE.

Wise PLC Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAG	80 Outperform	£1.38B	7.96	13.14%	5.73%	27.88%	28.92%
PLUS	79 Outperform	£2.05B	10.12	40.24%	6.11%	2.95%	9.84%
IGG	75 Outperform	£3.27B	9.59	19.85%	4.97%	6.34%	30.64%
MONY	75 Outperform	£996.20M	12.42	35.03%	6.54%	1.64%	10.85%
PAY	75 Outperform	£424.24M	10.85	37.39%	6.43%	43.88%	28.50%
WISE	69 Neutral	£12.77B	22.26	45.06%	―	34.39%	94.35%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%