WTC 1.27% $52.47 wisetech global limited

WiseTech valuation on company provided guidance

  1. 3,682 Posts.
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    Not going to be popular.

    I sold out of Wisetech a while back, but continue to follow along with other companies I am interested in and I consider significant to the ASX200.

    The company has made forward guidance, on the basis that market conditions do not materially change, of FY 2022 revenue growth of 18-25% to around $600-635 million and EBITDA growth of 26-38% representing $260-285 million. 2021 figures were; $507.5 million revenue and EBITDA of $206.7 million and NPAT of $108 million.

    Now this is growth stock, so lets ignore trailing valuations, but on forward P/S, WTC is trading nearly 18 times! Lets be generous and call 2022 NPAT $150 million. On forward P/E, WTC is trading at 70 times!!!!

    I am all for a bit of extra premium on growth stocks, but that's Tesla territory.

    Importantly the company announced of the $101.4 million additional revenue generated in FY 2021, $97.3 million was recurring. That's only $4 million new business revenue growth from new clients. Yes activity from existing clients will increase as logistics activities pick up further in 2022, but it needs a lot more than existing client growth to justify this lofty share price.

    Retail buyers beware up here, you are paying very high valuation multiples on future earnings as guided by the company.
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