Fact based stock research
WisdomTree (NasdaqGS:WETF)

US97717P1049

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

WisdomTree stock research in summary

wisdomtree.com

ANALYSIS: With an Obermatt Combined Rank of 31 (worse than 69% compared with investment alternatives), WisdomTree (Asset Management & Custody, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of WisdomTree are low in value (priced high) with a consolidated Value Rank of 35 (worse than 65% of alternatives), and are riskily financed (Safety Rank of 28, which means above-average debt burdens) but show above-average growth (Growth Rank of 71). ...read more

RECOMMENDATION: A Combined Rank of 31, is a hold recommendation based on WisdomTree's financial characteristics. As the company WisdomTree shows low value with an Obermatt Value Rank of 35 (65% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 71% of comparable companies (Obermatt Growth Rank is 71). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 28 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for WisdomTree, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	35
Growth Rank	71
Safety Rank	28
Combined Rank	31

Country	USA
Industry	Asset Management & Custody
Index	NASDAQ
Size class	Medium

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: WisdomTree

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	32	47	35
GROWTH
GROWTH	56	53	95	71
SAFETY
SAFETY	6	30	26	28
SENTIMENT
SENTIMENT	n/a	10	88	^new
360° VIEW
360° VIEW	n/a	4	80	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better WisdomTree is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	32	47	35
GROWTH
GROWTH	56	53	95	71
SAFETY
SAFETY	6	30	26	28
COMBINED
COMBINED	16	16	66	31

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of WisdomTree the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 35 (worse than 65% compared with alternatives), WisdomTree shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with all four indicators below average for WisdomTree. Price-to-Sales is 44 which means that the stock price compared with what market professionals expect for future profits is higher than 56% of comparable companies, indicating a low value concerning WisdomTree's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 38, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of WisdomTree. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 49 and Dividend Yield, which is lower than 73% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 35, is a hold recommendation based on WisdomTree's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for WisdomTree? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as WisdomTree? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. WisdomTree may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	79	54	52	44
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	18	32	41	49
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	44	59	38
DIVIDEND YIELD
DIVIDEND YIELD	51	45	45	27
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39	32	47	35

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of WisdomTree; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), WisdomTree shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for WisdomTree. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Both Profit Growth, with a rank of 86, and Stock Returns, with a rank of 83, are also above average. But Capital Growth only has a rank of 22, which means that, currently, professionals expect the company to grow its invested capital less than 78% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	16	51	62	59
PROFIT GROWTH
PROFIT GROWTH	75	78	92	86
CAPITAL GROWTH
CAPITAL GROWTH	n/a	20	67	22
STOCK RETURNS
STOCK RETURNS	90	46	63	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	56	53	95	71

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of WisdomTree.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 28 (better than 28% compared with alternatives), the company WisdomTree has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of WisdomTree is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for WisdomTree and the other two below average. Leverage is at a rank of 52 meaning the company has a below-average debt-to-equity ratio. It has less debt than 52% of its competitors.Refinancing is at a rank of 19, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 81% of its competitors. Liquidity is at a rank of 40, meaning that the company generates less profit to service its debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 28 (worse than 72% compared with alternatives), WisdomTree has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of WisdomTree are on the safer side. Investors may have a short-term debt challenge and liquidity issues with WisdomTree and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	31	56	50	52
REFINANCING
REFINANCING	2	24	31	19
LIQUIDITY
LIQUIDITY	38	33	29	40
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	6	30	26	28

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of WisdomTree and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	21	21	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	87	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	38	71	^new
MARKET PULSE
MARKET PULSE	n/a	38	93	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	10	88	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for WisdomTree.
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