Netwealth is buying Paradino, an artificial intelligence platform that turns advisor meeting recordings into finished advice paperwork in minutes. The deal totals AUD 20 million upfront in cash and shares, plus up to a further AUD 9 million in earn-outs.
Netwealth has only a small percentage of the investment administration market, at around 10%, but has won market share quickly. Significant growth potential remains.
Netwealth operates in a commoditized industry and has less funds under administration than many of its competitors. We expect the larger administration platforms to continue improving the functionality of their platforms and compete more aggressively on price.
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Metric
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NWL
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CBA
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WBC
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|---|---|---|---|
Price/Earnings (Normalized) | 31.29 | 22.81 | 16.63 |
Price/Book Value | 26.09 | 3.22 | 1.66 |
Price/Sales | 10.79 | 8.48 | 5.46 |
Price/Cash Flow | 72.70 | — | 11.63 |
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Metric
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NWL
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CBA
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WBC
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Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
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Metric
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NWL
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CBA
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WBC
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|---|---|---|---|
Return on Assets (Normalized) | 48.37% | 0.78% | 0.61% |
Return on Equity (Normalized) | 79.58% | 14.04% | 9.64% |
Return on Invested Capital (Normalized) | — | — | — |
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United States