Wise PLC Class A (WISE) AI Stock Analysis

• Market Cap: £13.08B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 1.10
• Revenue Growth: 19.68%
• EPS Growth: 15.88%
• Country: UK
• Employees: 6,000
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 0.20
• Shares Outstanding: 1,025,000,200
• 10 Day Avg. Volume: 1,651,855
• 30 Day Avg. Volume: 1,747,569
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £1,254.56
• Price Target Upside: 21.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 80 Outperform
• Price Target: 1,188.00p ▲(15.00% Upside)

Wise PLC's strong financial performance and positive earnings call sentiment are major contributors to its high overall score. While the technical analysis and valuation present some concerns, these are outweighed by the company's robust growth metrics and strategic initiatives.

Positive Factors

Competitive Position

There is a strong positioning and multiple growth drivers, supporting a Buy rating.

Growth Opportunities

Wise's shares present a compelling opportunity due to commercial and bank opportunities starting to process meaningful volumes.

Strategic Moves

The shift in primary listing to the US sets up Wise for eventual access to key wire/real-time payment systems, lowering costs for Wise and consumers.

Negative Factors

Competitive Comparison

Revolut's performance in Wealth and Subscription services stood out compared to Wise.

Financial Performance

Wise grew uIncome 14% cc y/y, impacted by -300bp FX, (+3% q/q) to £362m, missing by 3% cons/JEFe.

Foreign Exchange Impact

Driven by higher FX headwinds (USD), estimates were trimmed and price target lowered.

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 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 Financial Statement Overview

Summary

Wise PLC demonstrates robust financial health with strong revenue growth and profitability. The company's solid equity position and excellent cash flow management further highlight its stability and growth potential.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.81B	1.41B	986.30M	563.80M	421.00M
Gross Profit	1.31B	1.10B	638.20M	369.10M	260.50M
EBITDA	598.60M	520.00M	166.90M	62.90M	60.90M
Net Income	416.70M	354.60M	114.00M	32.90M	30.90M
Balance Sheet
Total Assets	19.25B	15.14B	11.90B	7.56B	4.30B
Cash, Cash Equivalents and Short-Term Investments	12.83B	1.06B	11.48B	7.25B	1.62B
Total Debt	185.60M	224.20M	249.90M	78.50M	78.60M
Total Liabilities	17.86B	14.16B	11.33B	7.16B	4.02B
Stockholders Equity	1.39B	979.90M	576.90M	409.20M	285.30M
Cash Flow
Free Cash Flow	4.46B	3.24B	3.91B	3.13B	2.05B
Operating Cash Flow	4.49B	3.25B	3.92B	3.14B	2.07B
Investing Cash Flow	-598.40M	-142.60M	-2.59B	-490.40M	-671.80M
Financing Cash Flow	-181.30M	-125.60M	153.90M	-1.30M	24.80M

Wise PLC Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1033.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1033 is below the 20-day moving average (MA) of 1050.30, below the 50-day MA of 1061.90, and above the 200-day MA of 991.92, indicating a neutral trend. The MACD of -11.55 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.78 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WISE	80 Outperform	£13.08B	25.41	35.22%	―	19.68%	15.88%
CCC	73 Outperform	£2.36B	14.54	19.50%	2.88%	0.61%	-9.17%
SCT	72 Outperform	£3.18B	25.35	47.63%	1.87%	10.75%	10.61%
FDM	66 Neutral	£137.53M	8.88	24.53%	18.91%	-27.01%	-49.07%
Sector *	62 Neutral	$34.81B	5.17	-10.28%	2.07%	6.45%	-4.84%
RCN	57 Neutral	$197.21M	317.95	1.06%	2.90%	3.57%	―