Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

WiseTech (ASX:WTC) shares are going bananas after the FY20 report

WiseTech Global Ltd (ASX: WTC) shares are going bananas right now, it’s up 27% after reporting the FY20 result.

WiseTech FY20 report

WiseTech announced that its total revenue increased by 23% to $429.4 million with recurring revenue increasing a proportion of total revenue to 89% (up from 88%).

The company described this revenue growth as solid despite COVID-19 headwinds. CargoWise revenue was up 20% to $263 million, which management said that displayed the strength of the core CargoWise platform. Revenue attributed to acquired businesses grew 29% to $166.4 million.

Some of the recent global contract wins has been Hellmann Worldwide Logistics and Aramex.

WiseTech reported that its EBITDA (click here to learn what EBITDA means) rose by 17% to $126.7 million. However, the EBITDA margin declined by 1% to 30%. The CargoWise EBITDA margin was 48%.

Reported net profit after tax grew by 197% to $160.8 million and statutory profit/earnings per share (EPS) grew by 185% to 50.3 cents. However, underlying net profit was flat at $52.6 million and underlying EPS fell 4% to 16.4 cents. Operating cashflow increased by 16%.

The underlying profit figures exclude a fair value gain of $111 million and $2.9 million of contingent consideration interest unwind after closing out earnouts relating to 22 acquisitions.

WiseTech dividend

The WiseTech board decided to reduce the final dividend per share by 18% to 1.6 cents.

The company finished with cash of $223.7 million with no debt excluding lease liabilities. It also has undrawn facilities in place for financial headroom and flexibility. The company has no plains to raise additional capital or debt.

Management comments

WiseTech Founder and CEO Richard White said: “COVID-19 market disruptions have provided a long-term tailwind for growing our market share as the need for digitalisation across the global logistics execution market accelerates and significantly increases the value and demand for CargoWise. 

In FY20 we saw a number of our large logistics customers such as DHL Global Forwarding and DSV/Panalpina expand their global rollouts on the CargoWise platform.

In addition, CargoWise recently signed global contracts that include freight forwarding and customs global rollouts with Aramex (35 countries), Seafrigo Group (12 countries) and top-25 global forwarder Hellmann Worldwide Logistics (42 countries).”

Outlook

The company is expecting FY21 revenue to grow by between 9% to 19% (to $470 million to $510 million) and EBITDA growth of 22% to 42% (to $155 million to $180 million).

WiseTech seems to have done well to ride through the troubles of the past 12 months after COVID-19 and a short attack.

At the current WiseTech share price it’s valued at 161 times FY20’s underlying profit. That’s extremely pricey and I don’t think it represents good value today. A technology ASX growth share like Pushpay Holdings Ltd (ASX: PPH) seems like much better value with just as good (if not better) growth prospects in my opinion.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.