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WisdomTree (WT)
NYSE:WT
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WisdomTree
(NYSE:WT)
69Neutral
Positive Factors
Earnings
Gold settlement has boosted earnings and unlocked strategic value for WisdomTree.
Price Target
Analyst price target is increased by 7% to $11.50, driven by improvements in financial metrics.
Negative Factors
Adjusted EPS
Adjusted EPS for 2026 is down 1% due to higher expenses despite better revenues.
WisdomTree (WT) vs. S&P 500 (SPY)
Market Cap
$1.37B
Dividend Yield1.32%
Average Volume (3M)1.71M
Price to Earnings (P/E)27.1
Beta (1Y)0.73
Revenue Growth22.55%
EPS Growth-49.89%
CountryUS
Employees313
SectorFinancial
Sector Strength83
IndustryAsset Management
Share Statistics
EPS (TTM)0.29
Shares Outstanding147,047,850
10 Day Avg. Volume2,038,034
30 Day Avg. Volume1,708,860
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.99
Price to Cash Flow (P/CF)9.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.31Price Target Upside32.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
WisdomTree Business Overview & Revenue Model
Company DescriptionWisdomTree (WT) is an asset management company that specializes in exchange-traded funds (ETFs) and other financial products. With a focus on innovative investment strategies, WisdomTree offers a diverse range of ETFs covering various asset classes, including equities, fixed income, commodities, and alternative investments. The company aims to provide investors with efficient and cost-effective solutions that leverage its proprietary index methodologies and research-driven approach.
How the Company Makes MoneyWisdomTree makes money primarily through the management fees it charges for its suite of exchange-traded funds (ETFs) and other investment products. These fees are typically calculated as a percentage of the assets under management (AUM) and vary depending on the specific product and its complexity. The company also generates revenue through partnerships with financial advisors, brokers, and institutional clients who distribute its products. Additionally, WisdomTree may earn income from licensing its proprietary indexes and investment strategies to other financial firms. Significant factors contributing to its earnings include the performance of the financial markets, the company's ability to attract and retain investors, and the strategic expansion of its product offerings to meet evolving investor needs.
WisdomTree Financial Statement Overview
Summary
WisdomTree demonstrates strong growth and profitability, with efficient revenue generation and cost management reflected in the income statement. The balance sheet indicates a balanced leverage position, while cash flow metrics highlight effective cash conversion and growth. Continuous monitoring of debt levels and cash management will be critical to sustaining financial health.Income Statement
WisdomTree shows strong revenue growth with a TTM revenue increase of 22.56% from the previous year. The Gross Profit Margin for TTM stands at 74.91%, indicating efficient cost management. The Net Profit Margin is 15.59%, showing healthy profitability. The EBIT Margin is 32.10%, and the EBITDA Margin is 21.33%, both reflecting strong operational efficiency. Overall, the income statement reveals a positive growth trajectory and profitability.85
Very Positive
Balance Sheet
The Debt-to-Equity Ratio for TTM is 1.28, indicating a balanced level of leverage. The Return on Equity (ROE) is 16.68%, reflecting effective use of equity to generate profits. The Equity Ratio is 38.69%, showing a moderate level of equity financing. The balance sheet displays stability but suggests careful monitoring of debt levels to maintain financial health.70
Positive
Cash Flow
Free Cash Flow grew by 35.98% in TTM, indicating robust cash generation. The Operating Cash Flow to Net Income Ratio is 1.70, and the Free Cash Flow to Net Income Ratio is 1.70, both reflecting strong conversion of income into cash flow. Despite positive cash flow growth, ongoing attention to cash management is advisable to sustain long-term liquidity.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 427.74M | 349.04M | 301.35M | 304.32M | 253.70M | Gross Profit |
| 306.46M | 168.16M | 203.45M | 216.16M | 179.02M | EBIT |
| 137.29M | 87.49M | 44.23M | 89.06M | 73.63M | EBITDA |
| 117.37M | 87.73M | 89.08M | 93.76M | 77.84M | Net Income Common Stockholders |
| 66.69M | 102.55M | 50.68M | 49.80M | -35.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 181.19M | 129.31M | 258.34M | 267.88M | 108.32M | Total Assets |
| 1.03B | 944.14M | 1.03B | 1.02B | 869.68M | Total Debt |
| 512.91M | 275.47M | 322.68M | 319.16M | 187.22M | Net Debt |
| 331.72M | 146.16M | 190.58M | 178.45M | 113.79M | Total Liabilities |
| 633.56M | 402.43M | 728.21M | 746.51M | 603.41M | Stockholders Equity |
| 399.98M | 541.71M | 305.61M | 269.42M | 266.26M |
| Cash Flow | Free Cash Flow | |||
| 113.32M | 83.34M | 54.87M | 75.03M | 28.92M | Operating Cash Flow |
| 113.46M | 85.60M | 55.09M | 75.32M | 29.39M | Investing Cash Flow |
| -23.88M | 82.05M | -37.66M | -99.63M | 28.38M | Financing Cash Flow |
| -36.00M | -171.64M | -22.78M | 92.55M | -60.18M |
WisdomTree Technical Analysis
Neutral
9.32
Price Trends
9.27
Negative
10.12
Negative
10.06
Negative
Market Momentum
-0.18
Negative
53.42
Neutral
84.54
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WT, the sentiment is Neutral. The current price of 9.32 is above the 20-day moving average (MA) of 8.73, above the 50-day MA of 9.27, and below the 200-day MA of 10.06, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 84.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WT.
WisdomTree Risk Analysis
WisdomTree disclosed 53 risk factors in its most recent earnings report. WisdomTree reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WisdomTree Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $147.76B | 22.66 | 14.67% | 2.12% | 12.15% | 15.17% | |
71 Outperform | $6.86B | 13.01 | 5.31% | 5.17% | 3.97% | ― | |
70 Outperform | $21.25B | 10.48 | 20.60% | 5.17% | 9.80% | 17.87% | |
69 Neutral | $1.37B | 27.06 | 10.13% | 1.32% | 22.55% | -49.89% | |
66 Neutral | $10.54B | 30.47 | 2.76% | 6.23% | 9.48% | -65.57% | |
64 Neutral | $14.60B | 10.27 | 8.71% | 4.21% | 16.53% | -11.93% | |
63 Neutral | $4.92B | 11.13 | 14.75% | 0.02% | -6.77% | -14.55% |
* Financial Sector Average
Performance Comparison
WT
WisdomTree
9.32
0.50
5.67%
AMG
Affiliated Managers
172.80
6.48
3.90%
BLK
BlackRock
973.48
157.23
19.26%
BEN
Franklin Resources
20.03
-6.40
-24.21%
IVZ
Invesco
15.97
0.30
1.91%
TROW
T Rowe Price
95.47
-19.87
-17.23%
WisdomTree Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: -4.80% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in AUM growth and margin expansion, notable increases in EPS and stock price, and progress in digital assets. However, challenges in market flows, regulatory delays, and high compensation expenses were also discussed.Highlights
AUM Growth and Operating Leverage
Closed 2024 with AUM of $109.8 billion, up almost 10% from the prior year, with an adjusted operating margin expansion of 680 basis points.
Significant EPS and Stock Price Increase
Adjusted EPS increased by over 70% and stock price rose by 50% year-over-year, driven by strategic capital management initiatives.
Revenue and Margin Expansion
Adjusted revenues grew by 22% year-over-year, with a 21% growth on a year-to-date basis, leading to a 33.6% adjusted operating margin.
Models Business Growth
Models business ended the year with over 2,500 users and $3.83 billion in assets, reflecting 29% user growth and 28% asset growth year-over-year.
Strategic Progress in Digital Assets
Despite regulatory challenges, WisdomTree progressed in digital assets with 26,000 opened accounts and $31 million in total digital AUM.
Lowlights
Challenges in Flows and Market Conditions
Experienced outflows due to institutional clients' cash re-risking strategies, disruptions in Japan carry trade, and commodity market volatility.
Regulatory Delays in Digital Assets
Regulatory headwinds delayed digital asset implementation timeline by two years, with additional state approvals still needed.
High First Quarter Compensation Expense
Estimated first quarter compensation expense to be approximately $34 million to $35 million due to elevated seasonality and fixed compensation costs.
Company Guidance
During the WisdomTree Q4 2024 earnings call, CFO Bryan Edmiston provided detailed guidance for 2025, including key financial metrics. The compensation to revenue ratio is projected to range from 28% to 30%, influenced by planned hires and compensation adjustments. Discretionary spending is expected to increase to between $68 million and $72 million, up from $64.8 million in 2024, with additional marketing investments. The gross margin is anticipated to rise to about 81% to 82%, compared to 80.2% in the previous year. Third-party distribution expenses are forecasted to be between $11 million and $12 million, while adjusted interest expense is projected to be approximately $20 million, reflecting debt raised for stock repurchase. Interest income is estimated at $7 million, aligning with prior year figures. Weighted average diluted shares are expected to decrease to between 149 million and 150 million, down from 158.8 million in 2024, following a significant share repurchase. These projections incorporate current AUM levels and anticipated fund launches.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.