Investment Platform Analysis: Wise Plc

According to data from TipRanks, there have been six insider transactions over the past three months and more than 20 over the past six months. The majority of these dealings have been share sales, and this tends to suggest a lack of confidence in the company or a belief that the stock is trading above fair value. The stock has underperformed the market over the past 12 months having peaked April.

• Kingsley Kemish – Interim Chief Financial Officer
  Uninformative Buy Grant/Award/Other Acq – 6,484 shares
• Kingsley Kemish – Interim Chief Financial Officer
  Informative Buy – 4,480 shares
• Kingsley Kemish – Interim Chief Financial Officer
  Informative Sell Options Exercised and fully Sold –  3,553 shares
• Diana Avila Gonzalez – Senior Officer
  Informative Sell Options Exercised and fully Sold – 255,138 shares
• Jessica Winter – General Counsel
  Informative Sell – 1,000 shares
• Terri Duhon – Non-Executive,Director
  Informative Buy – 2,790 shares

Customer balances surged between 2023 and 2024. The company pointed to growing customer numbers, and the figures may also reflect an appreciation of the British Pound. Wise Plc noted £13.3 billion in customer balances at the end of FY2024.

Number of users vs previous year and quarter.

According to data from Wise Plc, customer numbers have increased significantly in recent years, from 7.4 million in 2022 to more than 13 million in 2024. This reflects very impressive growth, with the company pointing to its own investments in customer acquisition and strong retention rates.

Money transfered vs previous year and quarter.

The company has also recorded impressive growth in the amount of money being transferred through its platform. Management suggests much of this growth reflects the popularity of the Wise account – one account for over 40 currencies.

Revenue vs previous year vs consensus estimates.

Revenue generation has surged since the pandemic, with sales increasing more than three fold since 2021. The company has attributed increasing revenues to improved transaction volume and higher interest rates.

Earnings per share (EPS) vs previous year vs consensus estimates.

Earnings per share (EPS) have grown exponentially in recent years, reaching 34p in 2024. This is up from 3p in 2022 and reflects the positive impact of higher interest rates and increased customer activity.

Gross margin vs previous year

Wise Plc has seen an expansion of its gross margin in recent year. This likely reflects improving returns on customer cash deposits as interest rates rise. Higher interest rates have been a major boon for companies that hold cash deposits.

Operating margin vs previous year vs consensus estimates

This improving trend can also been seen when we look at operating margins. Wise Plc’s operating margin fell just short of 30% in 2024.

Net cash/net debt vs previous year vs consensus estimates.

According to data from FactSet, Wise Plc has just £224 million in debt and more than £5 billion in cash, resulting in a very strong net cash position. This net cash position has surged in recent years.

Analysts’ price targets and ratings including commentary.

Based on six analysts offering 12-month price targets for Wise Plc in the last 3 months, the average price target is £9.42 with a high forecast of £12.50 and a low forecast of £7.35.