Wise PLC Class A (WISE) AI Stock Analysis

• Market Cap: £12.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.74M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.91
• Revenue Growth: 17.53%
• EPS Growth: 15.88%
• Country: UK
• Employees: 6,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.20
• Shares Outstanding: 1,025,000,200
• 10 Day Avg. Volume: 2,175,526
• 30 Day Avg. Volume: 1,742,398
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £1,256.83
• Price Target Upside: 32.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: 1,164.00p ▲(22.40% Upside)

Wise PLC's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust growth metrics and strategic initiatives are promising, although technical indicators suggest caution due to bearish trends. Valuation is reasonable, supporting the company's long-term potential.

Positive Factors

Customer Growth

The significant increase in active customers, driven largely by word-of-mouth, indicates strong market acceptance and potential for sustained revenue growth.

Cash Flow Management

Strong free cash flow and high operating cash flow to net income ratio support Wise's ability to fund growth initiatives and maintain financial stability.

Revenue and Profit Growth

Consistent revenue and profit growth demonstrate Wise's effective business model and operational efficiency, supporting long-term financial health.

Negative Factors

North America Revenue Softness

Revenue softness in North America could indicate regional challenges that may affect Wise's ability to capture market share and sustain growth in this key region.

Price Reduction Impact

The impact of price reductions on revenue growth highlights potential pressure on margins, which could affect profitability if not offset by volume increases.

Take Rate Decline

A declining take rate may pressure revenue per transaction, necessitating higher transaction volumes to maintain revenue levels, which could challenge profitability.

Wise PLC Class A Business Overview & Revenue Model

Company Description

Wise PLC Class A (WISE) is a financial technology company that specializes in international money transfers and currency exchange services. The company operates primarily in the fintech sector, offering a user-friendly platform that enables individuals and businesses to send money across borders at lower costs compared to traditional banks. Wise provides services such as multi-currency accounts, borderless payments, and real-time currency conversion, catering to a global audience seeking transparent and efficient financial solutions.

How the Company Makes Money

Wise generates revenue primarily through transaction fees charged for currency conversions and money transfers. The company operates on a transparent pricing model, where it offers lower fees than traditional banking methods by leveraging its proprietary technology and network. Key revenue streams include fees from individual users transferring money, fees from businesses utilizing Wise for payroll or supplier payments, and fees from currency exchange services. Additionally, Wise benefits from partnerships with banks and financial institutions that enhance its capabilities and expand its customer base, contributing to overall earnings.

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.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 951.00
• 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 GB:WISE, the sentiment is Negative. The current price of 951 is below the 20-day moving average (MA) of 1016.95, below the 50-day MA of 1057.92, and below the 200-day MA of 1038.46, indicating a bearish trend. The MACD of -29.89 indicates Positive momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 16.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
FDM	76 Outperform	£148.47M	9.58	24.53%	16.57%	-27.01%	-49.07%
WISE	75 Outperform	£12.06B	23.44	35.22%	―	17.53%	15.88%
CCC	75 Outperform	£2.76B	17.28	17.42%	2.70%	21.86%	0.86%
SCT	69 Neutral	£3.06B	24.44	47.63%	1.94%	10.75%	10.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RCN	53 Neutral	£214.96M	61.36	4.99%	2.67%	-17.17%	―