Netwealth Group Ltd. (NWL) AI Stock Analysis

• Market Cap: AU$7.56B
• Dividend Yield: 1.26%
• Average Volume (3M): 655.25K
• Price to Earnings (P/E): 64.7
• Beta (1Y): 1.76
• Revenue Growth: 28.29%
• EPS Growth: 39.39%
• Country: AU
• Employees: 664
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.24
• Shares Outstanding: 245,358,440
• 10 Day Avg. Volume: 977,788
• 30 Day Avg. Volume: 655,246
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$33.41
• Price Target Upside: 9.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 59 Neutral
• Price Target: AU$32.00 ▲(4.68% Upside)

Netwealth Group Ltd. has a strong financial foundation with consistent growth and profitability, which is the most significant factor in its score. However, technical indicators show bearish momentum, and the high P/E ratio suggests potential overvaluation, which negatively impacts the overall score.

Netwealth Group Ltd. Business Overview & Revenue Model

Company Description

Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. It offers financial intermediation services; superannuation products; managed accounts; and managed funds, as well as investor directed portfolio services. The company also provides investment wrap products for self-managed super fund (SMSF) clients; investment options, such as listed and international securities, managed account models, managed funds, term deposits, premium services, and investor rewards; insurance products; forms and disclosure documents; and resources and tools, as well as insurance, advisory, licensee, and private wealth solutions. In addition, it offers a superannuation master fund, separately managed accounts, and self-managed superannuation and non-custodial administration services; and portfolio management tools, performance tools, investment research tools, and mobile access tools. The company provides its financial services to investors and non-institutional intermediaries, including financial advisers, private clients, and high net worth firms. Netwealth Group Limited was founded in 1999 and is headquartered in Melbourne, Australia.

How the Company Makes Money

Netwealth generates revenue through multiple key streams, primarily from investment management fees, which are charged as a percentage of assets under management (AUM). Additional revenue comes from platform fees, which are levied on clients utilizing their investment platforms for managing portfolios. The company also earns income from administration fees associated with superannuation accounts and investment accounts. Significant partnerships with financial advisors and institutions enhance Netwealth's distribution capabilities, allowing it to reach a broader client base and drive growth in AUM, ultimately contributing to its earnings.

Netwealth Group Ltd. Financial Statement Overview

Summary

Netwealth Group Ltd. exhibits strong financial performance across income, balance sheet, and cash flow metrics. Revenue and profit growth demonstrate robust operational execution, while a low debt-to-equity ratio ensures financial stability. Consistent cash flow performance supports operational health and future growth potential.

Income Statement

Netwealth Group Ltd. has demonstrated strong revenue growth with a 23.31% increase from 2023 to 2024. Gross profit margin stands at 64.62%, and net profit margin is 32.65%, indicating efficient cost management and profitability. The EBIT margin of 52.80% further supports robust operating performance. However, the EBITDA margin is not available for the latest period, which could provide additional insights into operational efficiency.

Balance Sheet

The balance sheet reveals a solid equity position with an equity ratio of 76.25%. The debt-to-equity ratio is low at 0.10, highlighting prudent leverage management. Return on equity (ROE) is impressive at 57.70%, reflecting strong profitability relative to shareholder equity. Overall, the financial stability is commendable, although the total debt has increased slightly from the previous year.

Cash Flow

The company shows a healthy cash flow position with a 15.61% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.08, suggesting efficient conversion of net income into cash flow. The free cash flow to net income ratio is 1.02, indicating effective cash management. The cash flow stability supports ongoing operational and financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	320.99M	312.30M	255.25M	207.01M	172.86M	141.98M
Gross Profit	204.26M	312.30M	164.98M	118.89M	98.32M	80.36M
EBITDA	166.77M	162.88M	124.95M	0.00	0.00	78.43M
Net Income	116.52M	116.52M	83.37M	67.15M	55.55M	54.10M
Balance Sheet
Total Assets	257.32M	257.32M	189.49M	161.88M	136.20M	131.12M
Cash, Cash Equivalents and Short-Term Investments	173.04M	173.04M	127.36M	109.97M	89.46M	81.96M
Total Debt	13.50M	13.50M	14.91M	13.59M	15.09M	16.43M
Total Liabilities	58.18M	58.18M	44.97M	38.84M	31.96M	37.94M
Stockholders Equity	199.14M	199.14M	144.52M	123.05M	104.24M	93.18M
Cash Flow
Free Cash Flow	125.23M	118.94M	85.07M	73.58M	56.61M	36.68M
Operating Cash Flow	126.84M	126.84M	89.98M	79.23M	59.60M	37.81M
Investing Cash Flow	-39.50M	-39.50M	-5.11M	-4.99M	-3.69M	-3.22M
Financing Cash Flow	-65.51M	-65.51M	-67.68M	-53.13M	-48.95M	-38.68M

Netwealth Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NWL, the sentiment is Negative. The current price of 30.57 is below the 20-day moving average (MA) of 31.52, below the 50-day MA of 34.55, and below the 200-day MA of 30.63, indicating a bearish trend. The MACD of -1.10 indicates Negative momentum. The RSI at 34.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NWL.

Netwealth Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COG	68 Neutral	440.05M	23.27	―	2.75%	-26.30%	40.12%
PPS	64 Neutral	360.67M	26.68	12.11%	2.98%	24.56%	59.32%
RZI	62 Neutral	74.81M	-114.52	―	―	5.03%	52.31%
OFX	62 Neutral	183.05M	7.55	13.67%	―	-4.69%	-18.65%
FNX	62 Neutral	9.03M	-2.77	―	―	49.34%	-3842.86%
NWL	59 Neutral	AU$7.56B	64.71	67.81%	1.26%	28.29%	39.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Netwealth Group Ltd. Corporate Events

Netwealth Group Ltd. Discloses Shareholding and Economic Exposure

Netwealth Group Ltd. announced that as of April 30, 2025, it holds control over 1,464,882 voting shares, representing 0.60% of its total voting shares. However, the company currently has zero net economic exposure to its shares, indicating no financial gain or loss from share price changes. This disclosure reflects the company’s current position in managing its shareholding and its implications for stakeholders, particularly in terms of voting power and economic exposure.

Netwealth Group Achieves Record FUA Growth Amid Market Volatility

Netwealth Group Limited reported a record-breaking performance for the March 2025 quarter, with Funds Under Administration (FUA) net flows reaching $3.5 billion, marking a 29% increase from the previous corresponding period. The company’s total FUA grew to $104.1 billion, despite a $1.0 billion negative market movement, demonstrating resilience against market volatility. The growth is attributed to high transition rates from existing financial intermediaries and strong new business conversions. The company’s diversified revenue sources and portfolio across various asset classes have contributed to its stability and limited impact on revenue amidst market fluctuations.

Netwealth Group Limited Announces Cessation of Performance Rights

Netwealth Group Limited announced the cessation of 13,783 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This cessation may impact the company’s capital management strategy and highlights the challenges in meeting performance conditions, which could influence investor perception and market positioning.

Netwealth Group Corrects Reporting Error in ASX Filing

Netwealth Group Limited announced a correction to an error in the number of options exercised as previously reported in its Appendix 2A lodged with the ASX. The corrected figures, released on 19 March 2025, show a variance in the options exercised, but the total number of ordinary fully paid securities remains unchanged at 244,931,303. This correction ensures accurate reporting and maintains transparency with stakeholders, reflecting the company’s commitment to governance and operational integrity.

Netwealth Group Ltd. Releases 1H25 Results Presentation

Netwealth Group Ltd. released its first-half 2025 results presentation, emphasizing that the information provided is for general use and not specific investment advice. The release includes various financial data in Australian dollars, though it cautions that past performance is not indicative of future results. The presentation made by the company includes forward-looking statements that involve risks and uncertainties, with no guarantees on future performance.

Netwealth Group Achieves Record Growth in 1H25 Financial Results

Netwealth Group Limited reported robust financial results for the first half of 2025, showcasing significant growth across key metrics. The company achieved record funds under administration net flows of $8.5 billion, a 80.2% increase from the previous year, and total income rose by 26.0% to $155.4 million. This growth led to a 32.8% rise in EBITDA to $78.0 million, with a margin expansion to 50.2%, and a substantial 46.6% increase in NPAT to $57.6 million. The company’s revenue diversification and efficient cost management have strengthened its market position, benefiting both stakeholders and shareholders with a 25% increase in interim dividends.