WiseTech Global Limited (WTC.AX) stock analysis

In our weekly check, WiseTech Global Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4.

About WiseTech Global Limited

WiseTech Global Limited is a Technology company (Software - Application) based in Australia, listed on ASX as WTC.AX.

What our checks show for WTC.AX

Red flags

• The net margin fell by 18 points over 5 years, to 12.8%: the company keeps less of each sale as profit.
• The gross margin fell by 10.1 points, to 68%: costs are rising faster than prices.
• The price swings a lot: 65% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 79% from a peak. Would you have held through that?

Warning signs

• Net debt is 2.8x a year of EBITDA (debt/equity 1.15). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2.2 times: a weak year could make the payments hard.
• The stock is still below its previous peak.
• Beta 1.2: the stock usually moves more than the market, both up and down.

Strengths

• Operating cash flow is 2.21x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 41.4% a year over the next years.
• Analysts expect the net margin to improve by 16.8 points from today's 12.8%.
• Revenue grew 36.1% a year over the last 3 years.
• Free cash flow is 27.6% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 38% of profit: there is a cushion.

Similar companies

GWRE · MANH · DOCU · FICO · HUBS · PAYC

Questions

What grade does WiseTech Global Limited (WTC.AX) have?

In our weekly check, WiseTech Global Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WTC.AX stock?

This week's biggest flags for WiseTech Global Limited: Margins falling, Gross margin falling, Very volatile. In total 8 of 25 checks show a warning or a red flag.

What does WiseTech Global Limited do?

WiseTech Global Limited is a Technology company (Software - Application) based in Australia, listed on ASX as WTC.AX.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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