WISDOMTREE INC (WT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WT - US97717P1049 - Common Stock
16.6 USD
+0.42 (+2.6%)
16.6 USD
0 (0%)
Taking everything into account, WT scores 6 out of 10 in our fundamental rating. WT was compared to 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of WT get a neutral evaluation. Nothing too spectacular is happening here. WT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make WT suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year WT was profitable.
- In the past year WT had a positive cash flow from operations.
- Of the past 5 years WT 4 years were profitable.
- Each year in the past 5 years WT had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.54%, WT is in the better half of the industry, outperforming 77.64% of the companies in the same industry.
- WT's Return On Equity of 25.32% is amongst the best of the industry. WT outperforms 90.72% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.07%, WT belongs to the top of the industry, outperforming 85.65% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WT is in line with the industry average of 7.27%.
- The last Return On Invested Capital (10.07%) for WT is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 25.32% | ||
| ROIC | 10.07% |
ROA(3y)6.41%
ROA(5y)3.86%
ROE(3y)13.43%
ROE(5y)8.36%
ROIC(3y)8.34%
ROIC(5y)7.51%
1.3 Margins
- With a Profit Margin value of 20.69%, WT perfoms like the industry average, outperforming 54.85% of the companies in the same industry.
- In the last couple of years the Profit Margin of WT has declined.
- WT has a better Operating Margin (33.67%) than 64.14% of its industry peers.
- In the last couple of years the Operating Margin of WT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.67% | ||
| PM (TTM) | 20.69% | ||
| GM | N/A |
OM growth 3Y3.13%
OM growth 5Y9.46%
PM growth 3Y-7.1%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- Compared to 1 year ago, WT has less shares outstanding
- The number of shares outstanding for WT has been reduced compared to 5 years ago.
- Compared to 1 year ago, WT has a worse debt to assets ratio.
2.2 Solvency
- WT has an Altman-Z score of 2.50. This is not the best score and indicates that WT is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of WT (2.50) is better than 71.31% of its industry peers.
- The Debt to FCF ratio of WT is 7.73, which is on the high side as it means it would take WT, 7.73 years of fcf income to pay off all of its debts.
- WT has a better Debt to FCF ratio (7.73) than 63.71% of its industry peers.
- WT has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
- WT has a Debt to Equity ratio of 2.19. This is in the lower half of the industry: WT underperforms 79.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | 2.5 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 2.82 indicates that WT has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 2.82, WT belongs to the best of the industry, outperforming 80.59% of the companies in the same industry.
- WT has a Quick Ratio of 2.82. This indicates that WT is financially healthy and has no problem in meeting its short term obligations.
- WT's Quick ratio of 2.82 is amongst the best of the industry. WT outperforms 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.82 |
3. Growth
3.1 Past
- WT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.82%, which is quite impressive.
- Measured over the past years, WT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.42% on average per year.
- WT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.05%.
- WT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.92% yearly.
EPS 1Y (TTM)29.82%
EPS 3Y18.35%
EPS 5Y23.42%
EPS Q2Q%27.78%
Revenue 1Y (TTM)12.05%
Revenue growth 3Y12.02%
Revenue growth 5Y9.92%
Sales Q2Q%11%
3.2 Future
- WT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.49% yearly.
- WT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.69% yearly.
EPS Next Y30.52%
EPS Next 2Y24.84%
EPS Next 3Y21.49%
EPS Next 5YN/A
Revenue Next Year14.89%
Revenue Next 2Y18.61%
Revenue Next 3Y14.69%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 22.43, the valuation of WT can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of WT indicates a slightly more expensive valuation: WT is more expensive than 62.45% of the companies listed in the same industry.
- WT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.91, the valuation of WT can be described as correct.
- WT's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, WT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.43 | ||
| Fwd PE | 16.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WT is valued a bit cheaper than the industry average as 79.32% of the companies are valued more expensively.
- WT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WT is cheaper than 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.38 | ||
| EV/EBITDA | 15.98 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- WT has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as WT's earnings are expected to grow with 21.49% in the coming years.
PEG (NY)0.73
PEG (5Y)0.96
EPS Next 2Y24.84%
EPS Next 3Y21.49%
5. Dividend
5.1 Amount
- WT has a yearly dividend return of 0.89%, which is pretty low.
- Compared to an average industry Dividend Yield of 5.87, WT is paying slightly less dividend.
- With a Dividend Yield of 0.89, WT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- The dividend of WT decreases each year by -0.61%.
- WT has paid a dividend for at least 10 years, which is a reliable track record.
- As WT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-0.61%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- WT pays out 18.48% of its income as dividend. This is a sustainable payout ratio.
DP18.48%
EPS Next 2Y24.84%
EPS Next 3Y21.49%
WISDOMTREE INC / WT FAQ
What is the ChartMill fundamental rating of WISDOMTREE INC (WT) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WT.
What is the valuation status for WT stock?
ChartMill assigns a valuation rating of 5 / 10 to WISDOMTREE INC (WT). This can be considered as Fairly Valued.
How profitable is WISDOMTREE INC (WT) stock?
WISDOMTREE INC (WT) has a profitability rating of 6 / 10.
How financially healthy is WISDOMTREE INC?
The financial health rating of WISDOMTREE INC (WT) is 6 / 10.
Can you provide the dividend sustainability for WT stock?
The dividend rating of WISDOMTREE INC (WT) is 3 / 10 and the dividend payout ratio is 18.48%.