NWL - Netwealth Group

[System]

As a specialist platform provider, Netwealth offers superannuation and non-superannuation platform products which provide innovative portfolio administration, investment management tools, investment and managed account solutions, primarily to financial intermediaries and clients.

Netwealth has approximately $14.3 billion FUMA as at 30 June 2017, with 2,106 financial intermediaries using its platform.

It is anticipated that NWL will list on the ASX during November 2017.

https://www.netwealth.com.au

 

[Kryzz]

Anyone have any thoughts on the upcoming Netwealth IPO?

I think it sounds promising given the shift away from banks and wealth management going hand in hand, especially after the job cuts NAB and ANZ have announced in anticipation of 'Fintechs' ever growing market share.

 

[Kryzz]

NWL announced their FUA topped >$15b today, a 58% increase for the calendar year. Reading back through some headlines, HUB had increases in FUA year on year ranging between 60-80%.

Will definitely be looking to top up my initial parcel if this trend continues. Diversified financials continuing to charge along.

 

[VSntchr]

The FUM going into this sector is aggressive and consistent. I did note a negative was that they have faced a reduction in the margin beyond what the prospectus had forecast, although this is explained by the onboarding of bigger clients... clearly a worthy trade-off.

 

[So_Cynical]

IPO'ed Late Nov 2017 at $3.70 ~ they have done well in just a couple of months...$6.50 close today.

 

[Kryzz]

Will be interesting to see Netwealth's first quarterly report post 30 June, hard to imagine funds wouldn't flow out of the bank owned/AMP platforms into independent. Almost pushed above a new all time high of $10 last week, still going strong.

Screenshot from the March quarterly update.

 

[Kryzz]

View attachment 87763

Will be interesting to see Netwealth's first quarterly report post 30 June, hard to imagine funds wouldn't flow out of the bank owned/AMP platforms into independent. Almost pushed above a new all time high of $10 last week, still going strong.

Screenshot from the March quarterly update.

Well those numbers from the June quarterly update were definitely well received, NWL were no 1 for net inflows for the past 12 months.

Market cap is approx $2.2b after being listed for less than 12 months.

 

[peter2]

NWL is another going into my reversal watch list.
After an impulsive move up price has been in a corrective pattern. The ABC corrective pattern looks to have completed at an area of confluence defined by a 62% pull-back and a return to a prior BO level.
I'll need to see a 123Low pattern before being tempted to buy. Others in same sector PPS, HUB are also recovering. We'll see. Reports soon 27/8/18.

 

[Kryzz]

NWL is another going into my reversal watch list.
After an impulsive move up price has been in a corrective pattern. The ABC corrective pattern looks to have completed at an area of confluence defined by a 62% pull-back and a return to a prior BO level.
I'll need to see a 123Low pattern before being tempted to buy. Others in same sector PPS, HUB are also recovering. We'll see. Reports soon 27/8/18.

View attachment 88898

Didn't realize there was such a sharp spike in % of the float short here. This data is four days delayed so hard to tell if it's dropped off with the pickup in share price here the past couple of sessions.

 

[rnr]

NWL is yet another share within striking distance of the ATH of $10.11 which was established on May 7th of this year. On May 14th price gaped down to open at $9.00 with the market rejecting this low to close near the high of $9.51 for the day. Price has continued to consolidate with resistance at around the $9.35 mark.

 

[KnowThePast]

It's a shame I haven't seen this earlier. I've been using them for my super for many years and really like their platform - well designed and easy to use.

I haven't seen them make many changes to it over the years. Doesn't bother me as a user, it does everything I need. I do wonder how much they invest into R&D and what the future plans are.

 

[Dona Ferentes]

Quarterly highlights and outlook
• Funds Under Administration at 31 December 2020 of $38.8 billion, an increase of $4.8 billion (14% increase) for the December quarter including market movement of $2.2 billion.... An increase of $10.3 billion (36.1% increase) to PCP1 including positive market movement of $1.1 billion.
• FUA net inflows of $2.6 billion for the December quarter, an increase of $0.6 billion (33.7% increase) over first quarter. FUA net inflows of $9.2 billion for the 2020 calendar year, an increase of $2.4 billion (36.1% increase) to the 2019 calendar year.
• Funds Under Management at 31 December 2020 of $9.3 billion, an increase of $1.3 billion (15.5% increase) for the December quarter. For the quarter, FUM net inflows of $0.7 billion and market movement of $0.5 billion.
• Managed Account balance of $7.6 billion at 31 December 2020, an increase of $3.2 billion (74.1% increase) to PCP. Managed Account net flows of $3.2 billion for the 2020 calendar year, an increase of $1.2 billion (63.9% increase) to the 2019 calendar year.
• New product pricing announced in March 2020 was implemented on 1 January 2021. Clients have been progressively moving to new pricing since the announcement and those clients who had not already moved to new pricing have now been transitioned.
• Netwealth expects to benefit from ongoing industry consolidation and change. For FY2021, the pipeline of new business and transitions remains strong. The impacts of COVID-19, however, continues to adversely impact the stability of global markets. Having regard to this uncertain environment and subject to the timing of transitions, the FY2021 FUA net inflows are expected to be in the range of $8.5 billion to $9.0 billion, an increase on previously advised expected annual FUA net inflows of $8.0 billion

- tailwinds trifecta: Mandated Super, market growth and consolidation.

 

[Dona Ferentes]

and ....
1H2021 financial results highlights (PCP2)
• EBITDA of $40.5 million ($31.1 million), increase of 30.1% to PCP.
• EBITDA margin of 56.0% (53.1%) for 1H2021.
• NPAT of $27.6 million ($20.5 million), $7.1 million increase or 34.5% increase to PCP.
• Total Income of $72.4 million ($58.7 million) an increase of $13.7 million or 23.4% to PCP. Platform Revenue of $71.2 million ($57.3 million), an increase of $13.8 million or 24.1% to PCP.
• Total Operating Expenses of $31.9 million ($27.5 million), an increase of $4.3 million to PCP, up 15.8% (including increase in employee benefits of $3.9 million, up 19.5% to $23.7 million for 1H2021). Headcount at 31 December 2020 of 371 with an additional 32 roles added in 1H2021.
• Operating net cash flow pre-tax3 of $40.5 million ($31.3 million), an increase of $9.1 million or 29.2% to PCP.
• EPS of 11.3 cents (8.4 cents), an increase of 2.9 cents or 34.5% to PCP.
• On 17 February 2021, the board declared a fully franked interim dividend of 9.06 cents per share totalling $22.1 million for 1H2021.
•

but when the expectation is for more, then Priced to Perfection ends up with the results leading to a 10% fall on the news.

 

[peter2]

After the 1H2021 news, NWL fell a little more to 13.60. Price then rallied back to 16.60.

Now, after news that NWL wants to change it's bank for deposits, the price has fallen 13% back to 13.70.

This seems to me to be an excessive drop for this news. Perhaps another may explain why this news is bad. I see the opportunity for a rebound trade and I've risked a little to find out.

 

[Dona Ferentes]

This seems to me to be an excessive drop for this news. Perhaps another may explain why this news is bad. I see the opportunity for a rebound trade and I've risked a little to find out.

buoyant times for platforms. Everything flowing their way. ....the market, inflows, and winning against competiton

Quarterly highlights and outlook
• Funds Under Administration (FUA) at 31 March 2021 of $41.8 billion, an increase of $3.0 billion (7.8% increase) for the March quarter including market movement of $0.8 billion and an increase of $14.0 billion (50.1% increase) to PCP including positive market movement of $5.7 billion.
• FUA net inflows of $2.3 billion for the March quarter and $6.7 billion YTD.
• Funds Under Management (FUM) at 31 March 2021 of $10.5 billion, an increase of $1.2 billion (12.7% increase) for the March quarter and an increase of $4.2 billion (66.4% increase) to PCP.
• FUM net inflows of $0.9 billion for the March quarter, includes $0.9 billion Managed Account net inflows.
• Managed Account balance of $8.7 billion at 31 March 2021, an increase of $3.7 billion (73.1% increase) to PCP

 

[mullokintyre]

I kinda like this company, it has a lot of attractions for me.
The one big nono for me is the P/E of 71.
Given that the forecast P/E for the current fin year is still at 69
one might expect it would be regarded as fully priced.
I need something to tip me over the edge into buying it.
Something else will have to go to make way for it,(and I have plenty of dud that would fit the bill).
Mick

 

[Dona Ferentes]

A good market lifts the numbers

1H2024 Highlights
• Funds Under Administration of $78.0 billion at 31 December 2023 represents 24.9% growth from 31 December 2022
• FUA as at 16 February of $80.8 billion
• Total Income of $123.3 million an increase of 20% to 1H2023 (PCP)
• EBITDA of $58.8 million an increase of 27.2% to PCP, EBITDA margin of 47.6%
• NPAT of $39.3 million, an increase of 28.3% to PCP, NPAT margin of 31.9%
• Operating net cash flow before tax of $59.8 million
• No 1 for Best Product Offering & Best Transaction Tools by Investment
Trends
• Highest industry platform 12 month FUA net inflows to 30 September 2023
• Interim dividend of 14 cents per share, representing a 27% increase to 1H2023