0R15 9025.0 0.0% 0R1E 9410.0 0.0% 0M69 None None% 0R2V 247.99 9682.643% 0QYR 1567.5 0.0% 0QYP 439.3701 -2.9016% 0RUK None None% 0RYA 1597.0 1.2682% 0RIH 195.55 0.0% 0RIH 191.4 -2.1222% 0R1O 225.5 9683.0803% 0R1O None None% 0QFP 10475.8496 107.8542% 0M2Z 252.573 0.2373% 0VSO 33.0 -7.3164% 0R1I None None% 0QZI 622.0 0.0% 0QZ0 220.0 0.0% 0NZF None None% 0YXG 222.05 -4.1318%
Wise PLC (LON: WISE)
Wise Plc is an FTSE listed Information Technology Company based out of the United Kingdom. WISE was founded in 2010 and is headquartered in London, the United Kingdom. It offers cross-border money transfer services to both business and retail customers. Geographically, it provides services in the UK, Europe, North America, the Asia-Pacific, and the Rest of the World. Its products include Wise Account, Wise Transfer, Wise Platform and Wise Business. Through Wise Account, the Company offers multi-currency banking services. Customers can send money abroad using Wise Transfer. Wise Platform offers account features and payments to the customers such as banks, financial institutions, credit unions, etc. Small and medium businesses can use Wise Business to open business accounts with mass pay-outs, multi-user access, bank feeds, etc.
Technological trend and advancements
Wise Plc strives to build convenient, instant, transparent and eventually free cross-border money transfer. WISE’s money transfer technology replaced the outdated slow corresponding banking system for international money transfer. The Company built its own global payment infrastructure and connects directly to the banks by eliminating intermediaries. It makes the process both faster and cost-saving. After a customer initiates an international money transfer, WISE’s system makes the international payment immediately to the recipient. WISE maintains close relationships with regulators globally. The Company has a global customer support function to maintain its global operations. Overall, WISE’s operations reduce cost, increase speed and provide transparency and convenience to its customers. The management strives to achieve zero cost of international money transfer in future.
Growth Prospects
Key Risks
Now we will analyse some key fundamental and shareholders statistics of Wise PLC.
Recent Development
Admission to the London Stock Exchange: On 7 July 2021, Wise Plc announced the listing of its entire issued class A ordinary share capital to the London Stock Exchange.
Financial and Operational Highlights (for three months ended 30 June 2021 as of 20 July 2021)
(Source: LSE Website)
Financial Ratios (FY2021)
Share Price Performance Analysis
(Source: Refinitiv, Research done by Kalkine Group)
On 6 August 2021, at 7:35 AM GMT, WISE’s shares were trading at GBX 970.40, up by 0.04% against the previous day closing price. Stock 52-week High and Low were GBX 1,029.80 and GBX 796.00, respectively.
On a daily chart, WISE's price is sustaining above 20-day EMA of about GBX 961.60 and 20-day SMA of about GBX 963.70, indicating the possibility of an upward movement.
In the last three months, WISE’s stock price has delivered a decent positive return of ~10.23%. It has outperformed the FTSE All-Share Industrial Support Services index with a return of around 3.75%.
Valuation Methodology: Price/Earnings Approach (NTM) (Illustrative)
Business Outlook Scenario
WISE delivered an excellent performance in Q1 FY2022, with revenues rising 43% YoY. It was achieved with a volume increase of 54% YoY. The management has made several partnerships to reach out to more people. It has also reduced its average fees. The management remains focused on continuous investments in product and technology, which provides further confidence for FY2022 and beyond. The Company is benefitting from its efficient and faster international money transfer, much lower cost leading to lower pricing, multi-currency transfer facility, and FCA licence to offer new innovative product going into FY2022. The listing of WISE on the London Stock Exchange is an important step towards achieving the company’s next phase of growth.
Considering the excellent performance in Q1 FY2022, the reduction in pricing, increasing demand from customers, the Company’s investment in technology and products, improved profitability of the business, and support from the valuation as done using the above method, we have given a “BUY” recommendation on Wise Plc at the current price of GBX 970.40 (as on 6 August 2021 at 7:35 AM GMT), with lower-double digit upside potential based on 204.53x Price/NTM Earnings (approx.) on FY22E earnings per share (approx.).
*All forecasted figures and Peer information have been taken from Refinitiv.
*The reference data in this report has been partly sourced from Refinitiv.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached. Resistance level 2 is at 52 week high and if Wise Plc attains momentum or breach it, then target price as per valuation table could be seen in the near term as per technical chart analysis.
Disclaimer
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