Education
About Us
Working with TipRanks
Follow Us
Wise PLC Class A (GB:WISE)
LSE:WISE
Top Page
Wise PLC Class A
(LSE:WISE)
Select Model
Select Model
Rating:82Outperform
Price Target:
1,240.00p
▲(13.24% Upside)
Wise PLC's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust growth metrics and strategic initiatives position it well for future expansion. Technical analysis and valuation scores are moderate, reflecting current market conditions and valuation metrics.
Positive Factors
Revenue Growth
Consistent revenue growth reflects Wise's expanding market reach and effective pricing strategies, supporting long-term business sustainability.
Customer Base Expansion
Strong customer growth, driven by word-of-mouth, enhances Wise's market position and indicates robust demand for its services.
Cash Flow Management
Strong cash flow management ensures Wise can effectively convert income into cash, supporting future growth and investment opportunities.
Negative Factors
North America Revenue Softness
Revenue softness in North America could indicate regional challenges, potentially impacting Wise's growth in a key market.
Price Reduction Impact
Price reductions have led to slower revenue growth, which may pressure margins and affect profitability if not managed carefully.
Cross-Border Take Rate Decline
A declining take rate could reduce revenue per transaction, potentially impacting Wise's revenue growth and profitability over time.
Wise PLC Class A (WISE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£14.32B
Dividend YieldN/A
Average Volume (3M)939.57K
Price to Earnings (P/E)27.8
Beta (1Y)1.06
Revenue Growth17.53%
EPS Growth15.88%
CountryUK
Employees6,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.20
Shares Outstanding1,025,000,200
10 Day Avg. Volume919,442
30 Day Avg. Volume939,574
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,281.38Price Target Upside17.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Wise PLC Class A Business Overview & Revenue Model
Company DescriptionWise PLC Class A (WISE), commonly known as Wise, is a global financial technology company that specializes in cross-border money transfer services. Established in 2011, the company operates within the fintech sector, providing a platform that allows individuals and businesses to send money abroad at lower costs compared to traditional banks. Wise is known for its transparent pricing, fast transactions, and a focus on real exchange rates, which distinguishes it from other financial service providers.
How the Company Makes MoneyWise makes money primarily through fees charged on international money transfers. The company offers a transparent fee structure, where users are charged a small percentage of the transfer amount combined with a fixed fee. Wise uses a peer-to-peer system to facilitate transfers, matching users who want to buy a currency with those who want to sell it, which helps keep costs low. Additionally, Wise generates revenue from its multicurrency accounts and Wise debit cards, which allow customers to hold, spend, and convert multiple currencies at the mid-market exchange rate. The company also partners with banks and other financial institutions to integrate its platform, expanding its customer base and revenue potential.
Wise PLC Class A Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call conveyed a positive sentiment with significant growth in customer base, holdings, and revenue despite some regional revenue softness and impacts from price reductions.Q4-2025 Updates
Positive Updates
Strong Customer Growth
Active customers increased by 21% year-on-year, with personal customers growing by 22% and business customers by 11%. Word-of-mouth was a significant driver, with 70% of customer growth coming from this channel.
Substantial Increase in Customer Holdings
Customer holdings grew by 33% year-on-year to GBP21.5 billion, driven by a 55% increase in assets under management.
Revenue and Profit Growth
Underlying income grew by 16% to GBP1.4 billion, with underlying profit before tax increasing by 17% to GBP282 million.
Wise Platform Expansion
Wise Platform represented 4% of cross-border volume, with new partnerships including Raiffeisen Bank and Itau.
Efficient Cost Management
Cost of sales increased by only 5%, significantly lower than the underlying income growth of 16%, allowing gross profit margins to expand to 75%.
Negative Updates
North America Revenue Softness
There was a noted softness in revenue performance from North America in the second half of the fiscal year.
Price Reduction Impact
Cross border revenue growth was only 6%, reflecting the impact of price reductions and a decrease in cross-border take rate.
Company Guidance
In the FY 2025 results presentation, Wise highlighted significant growth metrics and strategic updates. The company reported serving 15.6 million active customers, reflecting a 21% year-on-year increase, and moved GBP 145 billion in cross-border transactions, marking a 23% growth. Customer holdings grew by 33% to GBP 21.6 billion, underlining the increasing traction of Wise's account offerings. The underlying income for FY 2025 rose by 19% to GBP 1.4 billion, with underlying profit before tax up by 17%, reaching over GBP 0.5 billion. Wise's platform business, noted for its strategic partnerships with major banks like Itau and Raiffeisen, represented 4% of the cross-border volume, illustrating its growing significance. The company emphasized its commitment to lowering fees sustainably, with the take rate declining to 53 basis points. Looking ahead, Wise aims to expand its market share within the GBP 32 trillion cross-border market, supported by infrastructure investments and strategic initiatives like a proposed US dual listing to enhance liquidity and market presence.Wise PLC Class A Financial Statement Overview
Summary
Wise PLC demonstrates strong financial performance with robust revenue growth, healthy profit margins, a strong equity position, and excellent cash flow management. These factors indicate a solid financial foundation and effective strategic financial management.Income Statement
Wise PLC has demonstrated strong revenue growth, with a consistent upward trend over the years. The gross profit margin is robust, reflecting efficient cost management and pricing strategies. The net profit margin has also improved, indicating solid profitability. The EBIT and EBITDA margins are healthy, showcasing good operational performance.92
Very Positive
Balance Sheet
The company maintains a very strong equity position with a low debt-to-equity ratio, indicating a conservative approach to leveraging. The return on equity is impressive, showing effective utilization of shareholders' funds. The equity ratio suggests a stable financial structure with assets largely funded by equity rather than liabilities.88
Very Positive
Cash Flow
Wise PLC exhibits excellent cash flow management, with strong free cash flow generation and a high operating cash flow to net income ratio. The free cash flow to net income ratio further underscores the company's ability to convert net income into cash effectively, supporting future growth and investment opportunities.90
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.76B | 1.81B | 1.41B | 986.30M | 563.80M | 421.00M |
| Gross Profit | 654.90M | 1.31B | 1.10B | 638.20M | 369.10M | 260.50M |
| EBITDA | 603.40M | 598.60M | 520.00M | 166.90M | 62.90M | 60.90M |
| Net Income | 416.70M | 416.70M | 354.60M | 114.00M | 32.90M | 30.90M |
Balance Sheet | ||||||
| Total Assets | 19.25B | 19.25B | 15.14B | 11.90B | 7.56B | 4.30B |
| Cash, Cash Equivalents and Short-Term Investments | 12.83B | 12.83B | 9.22B | 7.65B | 2.32B | 1.62B |
| Total Debt | 185.60M | 185.60M | 224.20M | 264.40M | 95.70M | 98.70M |
| Total Liabilities | 17.86B | 17.86B | 14.16B | 11.33B | 7.16B | 4.02B |
| Stockholders Equity | 1.39B | 1.39B | 979.90M | 576.90M | 409.20M | 285.30M |
Cash Flow | ||||||
| Free Cash Flow | 2.21B | 4.46B | 3.24B | 3.91B | 3.13B | 2.05B |
| Operating Cash Flow | 2.25B | 4.49B | 3.25B | 3.92B | 3.14B | 2.07B |
| Investing Cash Flow | -598.40M | -598.40M | -142.60M | -2.59B | -490.40M | -671.80M |
| Financing Cash Flow | 2.07B | -181.30M | -125.60M | 153.90M | -1.30M | 24.80M |
Wise PLC Class A Technical Analysis
Positive
1095.00
Price Trends
1069.62
Positive
1066.85
Positive
1035.33
Positive
Market Momentum
12.53
Positive
48.13
Neutral
4.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WISE, the sentiment is Positive. The current price of 1095 is below the 20-day moving average (MA) of 1102.15, above the 50-day MA of 1069.62, and above the 200-day MA of 1035.33, indicating a neutral trend. The MACD of 12.53 indicates Positive momentum. The RSI at 48.13 is Neutral, neither overbought nor oversold. The STOCH value of 4.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WISE.
Wise PLC Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | £14.32B | 27.83 | 35.22% | ― | 17.53% | 15.88% | |
75 Outperform | 2.53B | 15.69 | 21.08% | 2.68% | 21.86% | 0.86% | |
69 Neutral | 3.18B | 25.25 | 0.00% | 1.87% | 10.75% | 10.61% | |
65 Neutral | 129.88M | 8.33 | 30.45% | 18.94% | -27.01% | -49.07% | |
57 Neutral | 217.49M | 341.03 | 0.00% | 2.63% | 3.57% | 0.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
GB:WISE
Wise PLC Class A
1,088.00
453.00
71.34%
GB:CCC
Computacenter
2,464.00
70.95
2.96%
GB:FDM
FDM Group (Holdings)
119.60
-242.88
-67.01%
GB:RCN
Redcentric
136.50
11.32
9.04%
GB:SCT
Softcat
1,593.00
108.47
7.31%
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.