Latest news with #WiseTechGlobalLimited
Yahoo
30-05-2025
- Business
- Yahoo
WiseTech Global (ASX:WTC) stock performs better than its underlying earnings growth over last five years
Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the WiseTech Global Limited (ASX:WTC) share price has soared 383% over five years. If that doesn't get you thinking about long term investing, we don't know what will. In more good news, the share price has risen 24% in thirty days. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, WiseTech Global achieved compound earnings per share (EPS) growth of 23% per year. This EPS growth is lower than the 37% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. This optimism is visible in its fairly high P/E ratio of 121.15. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of WiseTech Global's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of WiseTech Global, it has a TSR of 388% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. WiseTech Global's TSR for the year was broadly in line with the market average, at 12%. It has to be noted that the recent return falls short of the 37% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
WiseTech Global (ASX:WTC) stock performs better than its underlying earnings growth over last five years
Buying shares in the best businesses can build meaningful wealth for you and your family. While the best companies are hard to find, but they can generate massive returns over long periods. To wit, the WiseTech Global Limited (ASX:WTC) share price has soared 383% over five years. If that doesn't get you thinking about long term investing, we don't know what will. In more good news, the share price has risen 24% in thirty days. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, WiseTech Global achieved compound earnings per share (EPS) growth of 23% per year. This EPS growth is lower than the 37% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. This optimism is visible in its fairly high P/E ratio of 121.15. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of WiseTech Global's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of WiseTech Global, it has a TSR of 388% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. WiseTech Global's TSR for the year was broadly in line with the market average, at 12%. It has to be noted that the recent return falls short of the 37% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
23-02-2025
- Business
- Yahoo
Is It Time To Consider Buying WiseTech Global Limited (ASX:WTC)?
Let's talk about the popular WiseTech Global Limited (ASX:WTC). The company's shares saw significant share price movement during recent months on the ASX, rising to highs of AU$139 and falling to the lows of AU$115. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether WiseTech Global's current trading price of AU$122 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at WiseTech Global's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for WiseTech Global According to our valuation model, the stock is currently overvalued by about 34%, trading at AU$122 compared to our intrinsic value of A$90.94. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that WiseTech Global's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. WiseTech Global's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has well and truly priced in WTC's positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe WTC should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on WTC for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the optimistic prospect is encouraging for WTC, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. So while earnings quality is important, it's equally important to consider the risks facing WiseTech Global at this point in time. Every company has risks, and we've spotted 1 warning sign for WiseTech Global you should know about. If you are no longer interested in WiseTech Global, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
