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Netwealth Group

ASX:NWL
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NWL
ASX
A$2B
Market Cap
  1. Home
  2. AU
  3. Diversified Financials
Company description

Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. The last earnings update was 49 days ago. More info.


Add to Portfolio Compare Print
  • Netwealth Group has significant price volatility in the past 3 months.
NWL Share Price and Events
7 Day Returns
14.2%
ASX:NWL
5.5%
AU Capital Markets
5.1%
AU Market
1 Year Returns
-14.2%
ASX:NWL
-24.9%
AU Capital Markets
-19.1%
AU Market
NWL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Netwealth Group (NWL) 14.2% 14.7% -7.1% -14.2% - -
AU Capital Markets 5.5% -25.5% -29.7% -24.9% 9.9% 23.1%
AU Market 5.1% -18.7% -25.7% -19.1% -16.6% -17.3%
1 Year Return vs Industry and Market
  • NWL outperformed the Capital Markets industry which returned -24.9% over the past year.
  • NWL outperformed the Market in Australia which returned -19.1% over the past year.
Price Volatility
NWL
Industry
5yr Volatility vs Market

Value

 Is Netwealth Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Netwealth Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Netwealth Group.

ASX:NWL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity
= A$0.36 * 58%
A$0.21
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. A$0.36
Discount Rate (Cost of Equity) See below 5.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 1.1%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:NWL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 1.1%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.744 (1 + (1- 30%) (0.11%))
0.829
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.08% + (0.829 * 5.44%)
5.59%

Discounted Cash Flow Calculation for ASX:NWL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Netwealth Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:NWL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (58% – 5.59%) * A$0.36)
A$0.19
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.19 / (5.59% - 1.08%)
A$4.14
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$0.36 + A$4.14
A$4.5
ASX:NWL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.50
Current discount Discount to share price of A$7.58
= -1 x (A$7.58 - A$4.50) / A$4.50
-68.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Netwealth Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Netwealth Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Netwealth Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NWL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in AUD A$0.17
ASX:NWL Share Price ** ASX (2020-04-06) in AUD A$7.58
Australia Capital Markets Industry PE Ratio Median Figure of 21 Publicly-Listed Capital Markets Companies 12.47x
Australia Market PE Ratio Median Figure of 515 Publicly-Listed Companies 12.97x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Netwealth Group.

ASX:NWL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NWL Share Price ÷ EPS (both in AUD)

= 7.58 ÷ 0.17

45.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netwealth Group is overvalued based on earnings compared to the AU Capital Markets industry average.
  • Netwealth Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Netwealth Group's expected growth come at a high price?
Raw Data
ASX:NWL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 45.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
13.7%per year
Australia Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 1.4x
Australia Market PEG Ratio Median Figure of 337 Publicly-Listed Companies 1x

*Line of best fit is calculated by linear regression .

ASX:NWL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 45.63x ÷ 13.7%

3.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netwealth Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Netwealth Group's assets?
Raw Data
ASX:NWL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in AUD A$0.29
ASX:NWL Share Price * ASX (2020-04-06) in AUD A$7.58
Australia Capital Markets Industry PB Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 1.1x
Australia Market PB Ratio Median Figure of 1,613 Publicly-Listed Companies 1.24x
ASX:NWL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NWL Share Price ÷ Book Value per Share (both in AUD)

= 7.58 ÷ 0.29

26.08x

* Primary Listing of Netwealth Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Netwealth Group is overvalued based on assets compared to the AU Capital Markets industry average.
X
Value checks
We assess Netwealth Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Netwealth Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Netwealth Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Netwealth Group expected to grow at an attractive rate?
  • Netwealth Group's earnings growth is expected to exceed the low risk savings rate of 1.1%.
Growth vs Market Checks
  • Netwealth Group's earnings growth is expected to exceed the Australia market average.
  • Netwealth Group's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NWL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NWL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 13.7%
ASX:NWL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 13.4%
Australia Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.7%
Australia Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.7%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:NWL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NWL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 218 72 73 1
2023-06-30 183 66 66 1
2022-06-30 150 53 52 8
2021-06-30 130 46 45 9
2020-06-30 118 46 41 9
2020-04-06
ASX:NWL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-12-31 109 54 39
2019-09-30 104 48 37
2019-06-30 99 41 35
2018-12-31 91 33 30
2018-09-30 87 26 25
2018-06-30 83 18 20
2017-12-31 73 6 13
2017-09-30 67 9 15
2017-06-30 61 13 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Netwealth Group's earnings are expected to grow by 13.7% yearly, however this is not considered high growth (20% yearly).
  • Netwealth Group's revenue is expected to grow by 13.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:NWL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Netwealth Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NWL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 0.31 0.31 0.31 1.00
2023-06-30 0.28 0.28 0.28 1.00
2022-06-30 0.22 0.24 0.18 6.00
2021-06-30 0.19 0.25 0.15 7.00
2020-06-30 0.17 0.18 0.16 6.00
2020-04-06
ASX:NWL Past Financials Data
Date (Data in AUD Millions) EPS *
2019-12-31 0.17
2019-09-30 0.16
2019-06-30 0.15
2018-12-31 0.13
2018-09-30 0.10
2018-06-30 0.08
2017-12-31 0.06
2017-09-30 0.06
2017-06-30 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Netwealth Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Netwealth Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Netwealth Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Netwealth Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Netwealth Group's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Netwealth Group has delivered over 20% year on year earnings growth in the past 5 years.
  • Netwealth Group's 1-year earnings growth is less than its 5-year average (30.4% vs 33%)
  • Netwealth Group's earnings growth has exceeded the AU Capital Markets industry average in the past year (30.4% vs 7.7%).
Earnings and Revenue History
Netwealth Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Netwealth Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NWL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 109.22 39.47 4.53
2019-09-30 103.99 37.34 4.64
2019-06-30 98.77 35.20 4.76
2018-12-31 90.97 30.26 4.45
2018-09-30 87.12 24.94 4.23
2018-06-30 83.26 19.62 4.02
2017-12-31 72.75 13.11 3.96
2017-09-30 67.00 14.72 3.67
2017-06-30 61.25 16.33 3.38
2016-06-30 49.03 14.31 2.80
2015-06-30 51.59 5.91 13.87
2014-06-30 43.64 8.19 10.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Netwealth Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Netwealth Group used its assets more efficiently than the AU Capital Markets industry average last year based on Return on Assets.
  • Netwealth Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Netwealth Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Netwealth Group has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Netwealth Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Netwealth Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Netwealth Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Netwealth Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Netwealth Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.0952582491568E+17x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Netwealth Group Company Filings, last reported 3 months ago.

ASX:NWL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 69.08 0.00 76.59
2019-09-30 69.08 0.00 76.59
2019-06-30 63.85 0.00 61.76
2018-12-31 58.71 0.00 51.02
2018-09-30 58.71 0.00 51.02
2018-06-30 67.41 0.00 58.28
2017-12-31 50.94 0.00 32.34
2017-09-30 50.94 0.00 32.34
2017-06-30 51.40 0.00 35.25
2016-06-30 43.14 0.00 28.54
2015-06-30 37.50 0.00 24.01
2014-06-30 37.12 0.76 19.61
  • Netwealth Group's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1% vs 0% today).
  • Debt is well covered by operating cash flow (2.4486071174014E+19%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 1595.7x coverage).
X
Financial health checks
We assess Netwealth Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Netwealth Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Netwealth Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.82%
Current annual income from Netwealth Group dividends. Estimated to be 2.06% next year.
If you bought A$2,000 of Netwealth Group shares you are expected to receive A$36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Netwealth Group's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (3.17%).
  • Netwealth Group's dividend is below the markets top 25% of dividend payers in Australia (8.12%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:NWL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Australia Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 5.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 368 Stocks 5.5%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.7%
Australia Bottom 25% Dividend Yield 25th Percentile 3.2%
Australia Top 25% Dividend Yield 75th Percentile 8.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:NWL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2024-06-30 0.29 1.00
2023-06-30 0.21 1.00
2022-06-30 0.17 9.00
2021-06-30 0.14 10.00
2020-06-30 0.14 10.00
2020-04-06
ASX:NWL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2020-02-17 0.138 2.022
2019-08-19 0.132 1.579
2019-02-18 0.110 1.299
2018-08-27 0.054 0.700
2018-02-26 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Netwealth Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Netwealth Group only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Netwealth Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Netwealth Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Netwealth Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Netwealth Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Netwealth Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Heine
COMPENSATION A$233,609
TENURE AS CEO 5.3 years
CEO Bio

Mr. Michael Max Heine has been a Joint Managing Director and Director of Netwealth Group Limited since January 2015 and 1999 respectively. Mr. Heine was instrumental in the establishment of Netwealth in 1999. He served as Managing Director of Netwealth Group Limited from 1999 to 2014. He has experience in Australian and European financial markets, including commodity trading, international financing, mortgage lending and property development. He was instrumental in the establishment of the Heine Brothers funds management business in 1982 and served as its Managing Director from 1982 to 1999.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michael's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Netwealth Group management team in years:

4.1
Average Tenure
  • The tenure for the Netwealth Group management team is about average.
Management Team

Michael Heine

TITLE
Joint MD & Director
COMPENSATION
A$234K
TENURE
5.3 yrs

Matt Heine

TITLE
Joint MD & Director
COMPENSATION
A$705K
TENURE
5.3 yrs

Grant Boyle

TITLE
CFO & Joint Company Secretary
COMPENSATION
A$383K
TENURE
2.9 yrs

Alistair Densley

TITLE
General Manager of Operations

John Hanrahan

TITLE
Chief Information Officer

Amanda Atkinson

TITLE
Head of Investor Services
TENURE
1.3 yrs

Rachel Axton

TITLE
GM of Legal

Mary Limperis

TITLE
General Manager of Human Resources

Nick Mitchell

TITLE
Head of Distribution
Board of Directors Tenure

Average tenure of the Netwealth Group board of directors in years:

13.4
Average Tenure
  • The average tenure for the Netwealth Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jane Anne Tongs

TITLE
Independent Non-Executive Chairman
COMPENSATION
A$127K
AGE
58
TENURE
20 yrs

Michael Heine

TITLE
Joint MD & Director
COMPENSATION
A$234K
TENURE
21.3 yrs

Matt Heine

TITLE
Joint MD & Director
COMPENSATION
A$705K
TENURE
16.1 yrs

Davyd Lewis

TITLE
Independent Non-Executive Director
COMPENSATION
A$117K
TENURE
10.8 yrs

Tim Antonie

TITLE
Independent Non-Executive Director
COMPENSATION
A$107K
AGE
53
TENURE
4.4 yrs

Sally Freeman

TITLE
Independent Non Executive Director
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
20. Jan 20 Buy Pinnacle Investment Management Limited Company 04. Oct 19 17. Jan 20 202,529 A$8.58 A$1,737,713
09. Sep 19 Sell Jane Anne Tongs Individual 04. Sep 19 05. Sep 19 -76,159 A$7.82 A$-595,290
09. Sep 19 Sell Davyd Lewis Individual 06. Sep 19 06. Sep 19 -60,050 A$8.33 A$-499,924
04. Sep 19 Sell Michael Heine Individual 02. Sep 19 02. Sep 19 -7,100,000 A$7.70 A$-54,669,992
X
Management checks
We assess Netwealth Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Netwealth Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

There's A Lot To Like About Netwealth Group Limited's (ASX:NWL) Upcoming 0.9% Dividend

As a result, readers should always check whether Netwealth Group has been able to grow its dividends, or if the dividend might be cut. … Check out our latest analysis for Netwealth Group If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. … Given that Netwealth Group has only been paying a dividend for a year, there's not much of a past history to draw insight from.

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Is Netwealth Group Limited's (ASX:NWL) Growth Strong Enough To Justify Its July Share Price?

The stock is trading at a lofty price-to-earnings (PE) ratio of 63.14x, telling us that Netwealth Group is overvalued based on current earnings compared to the Capital Markets industry average of 18.27x , and overvalued compared to the AU market average ratio of 16.44x. … However, seeing as Netwealth Group is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … So, when we include the growth factor in our analysis, Netwealth Group appears overvalued , based on the fundamentals.

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Imagine Owning Netwealth Group (ASX:NWL) And Wondering If The 16% Share Price Slide Is Justified

Unfortunately the Netwealth Group Limited (ASX:NWL) share price slid 16% over twelve months. … Even though the Netwealth Group share price is down over the year, its EPS actually improved. … This free report showing analyst forecasts should help you form a view on Netwealth Group A Different Perspective Given that the market gained 12% in the last year, Netwealth Group shareholders might be miffed that they lost 14% (even including dividends).

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Should You Be Tempted To Sell Netwealth Group Limited (ASX:NWL) Because Of Its P/E Ratio?

View our latest analysis for Netwealth Group How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Netwealth Group: P/E of 72.88 = A$9.28 ÷ A$0.13 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … ASX:NWL Price Estimation Relative to Market, June 10th 2019 Its relatively high P/E ratio indicates that Netwealth Group shareholders think it will perform better than other companies in its industry classification.

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With EPS Growth And More, Netwealth Group (ASX:NWL) Is Interesting

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Netwealth Group (ASX:NWL). … How Fast Is Netwealth Group Growing. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats).

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Netwealth Group Limited (ASX:NWL): Can Growth Justify Its April Share Price?

Looking at Netwealth Group Limited’s (ASX:NWL) fundamentals some investors are wondering if its last closing price of A$9 represents a good value for money for this high growth stock. … Check out our latest analysis for Netwealth Group? … One reason why investors are attracted to NWL is the high growth potential in the near future

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Should You Buy Netwealth Group Limited (ASX:NWL) For Its Dividend?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Let's dig deeper into whether Netwealth Group should have a place in your portfolio. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

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Introducing Netwealth Group, A Stock That Climbed 22% In The Last Year

To wit, the Netwealth Group Limited (ASX:NWL) share price is 22% higher than it was a year ago, much better than the market return of around 4.1% (not including dividends) in the same period. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … So it seems like the market has cooled on Netwealth Group, despite the growth.

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Is Netwealth Group Limited's (ASX:NWL) High P/E Ratio A Problem For Investors?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Netwealth Group has a price to earnings ratio of 79.84, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

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Who Has Been Buying Netwealth Group Limited (ASX:NWL) Shares?

So before you buy or sell Netwealth Group Limited (ASX:NWL), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Netwealth Group Insider Transactions Over The Last Year.

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Company Info

Description

Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. The company offers superannuation products, including accumulation and retirement income products; investment wrap products for self-managed super fund (SMSFs) or high net-worth clients; managed accounts; and managed funds, as well as investor directed portfolio services for self-managed super and non-super investments. It also provides investment options, such as listed equities, managed account models, managed funds, term deposits, cash, and others; SMSF and insurance products; forms and documents; and resources and tools, as well as advisory, licensee, and private wealth solutions. In addition, the company offers a superannuation master fund, separately managed accounts, and self-managed superannuation administration services; and portfolio management tools, performance tools, investment research tools, and mobile access tools. The company offers its financial services to investors and non-institutional intermediaries, including financial advisers, private clients, and high net worth firms. Netwealth Group Limited was founded in 1999 and is headquartered in Melbourne, Australia.

Details
Name: Netwealth Group Limited
NWL
Exchange: ASX
Founded: 1999
A$1,682,880,578
237,694,997
Website: http://www.netwealth.com.au
Address: Netwealth Group Limited
52 Collins Street,
Level 8,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NWL Ordinary Shares Australian Securities Exchange AU AUD 20. Nov 2017
CHIA NWL Ordinary Shares Chi-X Australia AU AUD 20. Nov 2017
Number of employees
Current staff
Staff numbers
0
Netwealth Group employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 10:51
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/17
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.