Over the past three years WT Financial Group (ASX: WTL) has undergone a transformational restructure to reduce its focus and reliance on B2C and non- recurring revenue to emerge as a primarily B2B-focused enterprise targeting recurring revenue lines. The successful implementation of the strategy and complementary acquisitions should now see the company return to profitable growth in FY22.
On our forecast, the business trades on a FY22 PE of 8.4x and EV/EBITDA of 5.1x. This is a large discount to peers, which on average are on 18x PE and EV/EBITDA of 7.0x. Successful execution of management’s strategy, coupled with potential acquisitions should result in a re-rating towards peers.
WT Financial Group is an ASX-listed diversified financial services company that contains two distinct channels, being their primary business-to-business (B2B) operations under Wealth Today Pty Ltd subsidiary and brand; and their complementary direct to consumer (or B2C) operations under Spring Financial Group brand.
This report can be downloaded via the WTL company page.