Wise Group PLC Class A WISE

Morningstar Rating
GBX845.00 −19.40 (2.24%)
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Company Report

Wise Is Well Positioned to Become the Foreign-Exchange Platform for Banks

Wise has adopted a low-cost strategy focusing exclusively on digital channels in an industry dominated by banks and low pricing transparency. Wise has built meaningful liquidity pools across many global currency corridors, allowing the financial technology company to circumvent foreign-exchange markets for most transactions processed via its platform. Wise operates local accounts in each jurisdiction where it is present, allowing it to move funds between parties wishing to exchange funds without funds ever crossing borders. Wise also continues to integrate deeper into local payment networks, starting out by partnering with a local financial intermediary before obtaining its own direct connection, in an effort to further reduce costs and improve transaction speed.

Price vs Fair Value

WISE is trading at a LOCK|QKmRTHC premium.
Price
GBX845.00
Fair Value
LOCK|JB
Uncertainty
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1-Star Price
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5-Star Price
d@f
Economic Moat
LOCK|<x
Capital Allocation
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Bulls Say, Bears Say

Bulls

The greater use of digital currency conversion is increasing Wise’s addressable market over time.

Bears

As currency conversion is commoditizing, Wise may see competition increasing with more digital players looking to emulate its business model.

News

Trading Information

Previous Close Price
GBX864.40
Day Range
GBX839.75–866.40
52-Week Range
GBX754.00–1,101.50
Bid/Ask
GBX802.00 / GBX919.00
Shares Outstanding
983.73M
Market Cap
GBX831.25B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
23.31
Price/Sales
4.32
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
4.17%

Company Profile

Wise is a currency conversion platform that matches, where possible, offsetting currency transactions across borders to reduce costs. The group focuses primarily on private clients and small and midsize enterprises, but it is building out its platform business aimed at providing its services as a backend solution to banks. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds in various asset management products.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Mid Growth
Total Number of Employees
6,500

Competitors

Valuation

Metric
WISE
PYPL
WU
Price/Earnings (Normalized)
23.3110.034.12
Price/Book Value
5.712.312.05
Price/Sales
4.321.440.47
Price/Cash Flow
16.046.502.68
Price/Earnings
WISE
PYPL
WU

Financial Strength

Metric
WISE
PYPL
WU
Quick Ratio
0.581.251.05
Current Ratio
1.071.291.05
Interest Coverage
31.6412.754.32
Quick Ratio
WISE
PYPL
WU

Profitability

Metric
WISE
PYPL
WU
Return on Assets (Normalized)
2.17%7.54%5.88%
Return on Equity (Normalized)
36.71%30.25%51.37%
Return on Invested Capital (Normalized)
26.85%19.54%15.86%
Return on Assets
WISE
PYPL
WU

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