WisdomTree (WT) AI Stock Analysis

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WisdomTree

(NYSE:WT)

Rating:73Outperform

Price Target:―

WisdomTree demonstrates strong financial performance and robust business growth as evident from record AUM and net inflows. Technical indicators show positive momentum but caution due to potential overbought conditions. Valuation metrics are moderate, with a relatively high P/E ratio and low dividend yield. The positive earnings call adds to the favorable outlook, despite minor seasonal revenue impacts.

Positive Factors

Earnings

Gold settlement has boosted earnings and unlocked strategic value for WisdomTree.

Financial Performance

Earnings per share for the fourth quarter are expected to increase by 12.5% due to better expenses and lower share count.

Negative Factors

Expenses

Adjusted EPS for 2026 is down 1% due to higher expenses despite better revenues.

WisdomTree (WT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.38B

Dividend Yield1.28%

Average Volume (3M)1.23M

Price to Earnings (P/E)27.8

Beta (1Y)0.85

Revenue Growth20.66%

EPS Growth-47.25%

CountryUS

Employees315

SectorFinancial

Sector Strength82

IndustryAsset Management

Share Statistics

EPS (TTM)0.16

Shares Outstanding147,031,330

10 Day Avg. Volume1,127,062

30 Day Avg. Volume1,232,762

Financial Highlights & Ratios

PEG Ratio0.06

Price to Book (P/B)3.16

Price to Sales (P/S)0.00

P/FCF Ratio11.37

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.42

Price Target Upside32.55% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

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 profitability and efficient cash flow management with a solid cash flow position and prudent debt management. However, the balance sheet shows moderate reliance on liabilities, and revenue growth has slowed recently.

Income Statement

Positive

The company shows strong profitability with a rising EBIT margin and consistent revenue growth. The gross profit margin remains healthy, and net profit margin is improving, indicating operational efficiency. However, the revenue growth rate has slowed recently, which could be a concern if it continues.

Balance Sheet

Positive

WisdomTree maintains a stable equity position, with a debt-to-equity ratio suggesting manageable leverage. The return on equity is improving, which is positive for shareholders. However, the equity ratio shows moderate reliance on liabilities, requiring careful monitoring of debt levels.

Cash Flow

Very Positive

The company has a strong cash flow position, with significant free cash flow growth and a high operating cash flow to net income ratio, indicating good cash management. The free cash flow to net income ratio further underscores the company's ability to convert income into cash effectively.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
438.98M	427.74M	349.04M	301.35M	304.32M	253.70M
	Gross Profit
297.93M	306.46M	168.16M	203.45M	216.16M	179.02M
	EBIT
143.50M	137.29M	87.49M	44.23M	89.06M	73.63M
	EBITDA
94.88M	140.35M	87.73M	89.08M	93.76M	77.84M
	Net Income Common Stockholders
69.21M	66.69M	102.55M	50.68M	49.80M	-35.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.37M	181.19M	129.31M	258.34M	267.88M	108.32M
	Total Assets
1.02B	1.03B	944.14M	1.03B	1.02B	869.68M
	Total Debt
513.24M	512.91M	275.47M	322.68M	319.16M	187.22M
	Net Debt
342.87M	331.72M	146.16M	190.58M	178.45M	113.79M
	Total Liabilities
607.23M	633.56M	402.43M	728.21M	746.51M	603.41M
	Stockholders Equity
415.63M	399.98M	541.71M	305.61M	269.42M	266.26M
Cash Flow		Free Cash Flow
119.02M	113.32M	83.34M	54.87M	75.03M	28.92M
	Operating Cash Flow
120.87M	113.46M	85.60M	55.09M	75.32M	29.39M
	Investing Cash Flow
-26.12M	-23.88M	82.05M	-37.66M	-99.63M	28.38M
	Financing Cash Flow
-42.39M	-36.00M	-171.64M	-22.78M	92.55M	-60.18M

WisdomTree Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price9.37

Price Trends

50DMA

8.82

Positive

100DMA

9.13

Positive

200DMA

9.75

Negative

Market Momentum

MACD

0.24

Positive

RSI

55.26

Neutral

STOCH

24.33

Neutral

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 9.37 is above the 20-day moving average (MA) of 9.28, above the 50-day MA of 8.82, and below the 200-day MA of 9.75, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 24.33 is Neutral, 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 2 New Risks

A failure to effectively manage the development and use of AI, combined with an evolving regulatory environment, could have an adverse effect on our growth, reputation or business. Q4, 2024

Third-party service provider risks Q4, 2024

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
WT	73 Outperform	$1.38B	27.82	10.77%	1.28%	20.66%	-47.25%
PX	73 Outperform	$1.26B	72.98	5.24%	1.25%	18.92%	―
GSBD	71 Outperform	$1.29B	25.45	3.27%	15.18%	-28.04%	-69.52%
VRTS	71 Outperform	$1.15B	9.90	13.66%	5.18%	0.63%	1.46%
NMFC	65 Neutral	$1.14B	10.71	8.11%	12.07%	-3.55%	-20.43%
Sector *	64 Neutral	$12.67B	9.74	7.58%	17015.08%	12.21%	-6.96%
AMTD	64 Neutral	$1.12B	1.44	11.11%	―	―	―

* Financial Sector Average

Performance Comparison

WisdomTree

9.69

-0.10

-1.02%

P10 Holdings

11.21

3.29

41.54%

NMFC

New Mountain Finance

10.79

-0.47

-4.17%

VRTS

Virtus Investment Partners

166.96

-51.80

-23.68%

GSBD

Goldman Sachs BDC

11.25

-1.98

-14.97%

AMTD

AMTD IDEA Group

1.01

-0.71

-41.28%

WisdomTree Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q1-2025)

% Change Since: 7.70%|

Next Earnings Date:Jul 25, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant achievements, including record AUM growth, strong net inflows, and successful fund launches, indicating robust business performance. However, there were minor setbacks in revenue and income due to seasonal factors.

Q1-2025 Updates

Positive Updates

Record AUM Growth

WisdomTree ended the quarter with record assets under management (AUM) of $115.8 billion, up 5.5% from the prior quarter.

Strong Net Inflows

Net inflows totaled $3 billion, reflecting an annualized organic growth rate of 11% with contributions from a broad-based global product suite.

Successful Launch of European Defense Fund

The WisdomTree European Defense Fund launched with $770 million in Q1 and added more than $700 million in April, marking one of the most successful launches in the company's history.

Growth in Model Portfolios

Assets Under Administration (AUA) in model portfolios reached $4 billion, up 4% to date, reflecting a nearly 20% annualized organic growth rate.

Expansion in Digital Assets

Digital assets, including WisdomTree Prime and WisdomTree Connect, saw modest growth, with an expansion to new states and tokenized fund flows exceeding $100 million year to date.

Negative Updates

Revenue Decline

Revenue for the quarter was $108 million, down slightly from the fourth quarter due to fewer trading days and a lower average fee capture.

Impact of Seasonal Compensation

Adjusted net income for the quarter was impacted by seasonal compensation, including payroll taxes, benefits, and bonuses.

Company Guidance

During the WisdomTree Q1 2025 earnings call, CFO Bryan Edmiston reported record assets under management (AUM) of $115.8 billion, a 5.5% increase from the previous quarter, with net inflows totaling $3 billion, reflecting an annualized organic growth rate of 11%. The U.S. market contributed over $1.8 billion in inflows, while the European market added $1.1 billion, with significant contributions from the newly launched European Defense Fund. Revenues for the quarter reached $108 million, showing an 11.6% increase compared to the same period last year, despite a slight decrease from the previous quarter due to fewer trading days and lower average fee capture. Adjusted net income was $23 million, or $0.16 per share, influenced by seasonal compensation factors. The company's 2025 guidance remains consistent with previous communications, and an update is available in the earnings presentation.

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.