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WisdomTree (WT)
NYSE:WT
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WisdomTree
(NYSE:WT)
Rating:73Outperform
Price Target:―
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
$1.46B
Dividend Yield1.21%
Average Volume (3M)1.12M
Price to Earnings (P/E)29.4
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. Volume872,325
30 Day Avg. Volume1,123,208
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
$12.08Price Target Upside21.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
WisdomTree Business Overview & Revenue Model
Company DescriptionWisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.
How the Company Makes MoneyWisdomTree makes money primarily through the management fees it charges on its range of ETFs and ETPs. These fees are typically a percentage of the assets under management (AUM) and are collected on a regular basis, providing a steady stream of revenue. Additionally, the company may earn revenue through performance fees, which are contingent on the investment products meeting specific performance benchmarks. WisdomTree's earnings are also influenced by its ability to attract new investors and retain existing ones, which is aided by its reputation for innovative investment strategies and its strong distribution network. Partnerships with financial advisors and institutions also play a critical role in expanding its reach and enhancing its product offerings.
WisdomTree Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q1-2025)
| % Change Since: 13.91%|
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.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
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.78
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| 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
Positive
9.91
Price Trends
8.98
Positive
9.11
Positive
9.75
Positive
Market Momentum
0.20
Positive
65.85
Neutral
89.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WT, the sentiment is Positive. The current price of 9.91 is above the 20-day moving average (MA) of 9.58, above the 50-day MA of 8.98, and above the 200-day MA of 9.75, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 65.85 is Neutral, neither overbought nor oversold. The STOCH value of 89.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1.
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
2.
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.46B | 29.42 | 10.77% | 1.21% | 20.66% | -47.25% | |
73 Outperform | $1.12B | 1.55 | 11.11% | ― | ― | ― | |
71 Outperform | $1.35B | 26.63 | 3.27% | 14.51% | -28.04% | -69.52% | |
69 Neutral | $1.18B | 10.12 | 13.66% | 5.07% | 0.63% | 1.46% | |
65 Neutral | $1.16B | 10.88 | 8.11% | 11.88% | -3.55% | -20.43% | |
64 Neutral | $12.87B | 9.81 | 7.76% | 16985.65% | 12.28% | -7.83% | |
61 Neutral | $1.11B | 64.26 | 5.24% | 1.44% | 18.92% | ― |
* Financial Sector Average
Performance Comparison
WT
WisdomTree
9.91
0.41
4.32%
PX
P10 Holdings
9.89
1.84
22.86%
NMFC
New Mountain Finance
10.83
-0.41
-3.65%
VRTS
Virtus Investment Partners
175.25
-31.84
-15.37%
GSBD
Goldman Sachs BDC
11.51
-1.75
-13.20%
AMTD
AMTD IDEA Group
1.04
-0.66
-38.82%
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.