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Netwealth Group Limited
Technology · Software - Application
Updated just now
$21.22
MARKET CAP
$5.21B
P/E RATIO
44.6
DIV. YIELD
1.9%
FRANKING
100%
Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. The company operates a platform that offers superannuation, including accumulation and retirement income products; investor directed portfolio services for self-managed superannuation and non-superannuation investments; managed accounts and funds, self-managed superannuation funds administration; and non-custodial administration and reporting services.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$17.33
Discounted cash flow estimate
$4.17
For 6% dividend yield
Business quality and balance-sheet durability.
How much the company owes vs. what it owns
Excellent. Very low debt (0.07) means strong financial flexibility and minimal bankruptcy risk.
Current Snapshot
Current D/E
0.07x
Industry Limit
0.50x
Headroom
+0.43x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 0.07, meaning it carries 7 cents of debt for every $1 of equity. The technology & software limit is 0.50, leaving 0.43 of headroom.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
Very low debt means this company has maximum flexibility. They won't need to cut dividends to service loans during downturns - your income stream is protected by a fortress balance sheet.
Sources
Profit after production costs, before overhead
Exceptional 102.0% margins indicate strong pricing power and brand value.
Current Snapshot
10Y Avg
102.0%
Threshold
40%
Worst Year
101.7%
Why It Matters
Gross margin indicates how much room a business has to absorb costs and still generate profit.
Formula
(Revenue - Cost of Goods Sold) / Revenue x 100Method
Assess both the long-term average and the weakest year. The framework checks for both level and consistency.
Worked Example
This company's 4-year average gross margin is 102.0% — it keeps 102 cents of every revenue dollar after production costs. The threshold is 40%, and the weakest year was 101.7%.
How to Interpret
Sources
Short-term assets vs. short-term debts
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$119M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $119M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Profit generated per $1 of shareholder investment
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
How efficiently the company turns money into profit
Exceptional 6090.2% ROIC indicates a strong competitive advantage and efficient use of capital.
Current Snapshot
5Y Avg
6090.2%
Threshold
11.0%
WACC Delta
+6081.2pp
Why It Matters
ROIC measures capital efficiency. Businesses that repeatedly earn above their funding cost can compound value more effectively.
Formula
After-Tax Operating Profit / Invested Capital x 100Method
Use the 5-year average ROIC and compare it with industry WACC plus the required spread in this framework.
Worked Example
This company's 5-year average ROIC is 6090.2%, with a cost of capital (WACC) of 9.0%. The +6081.2pp spread above WACC suggests it creates value on each dollar invested.
How to Interpret
Sources
Is the business growing — and is debt being managed responsibly?
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Current Snapshot
Revenue Change
+87.4%
Debt Change
-10.5%
Trend State
Improving
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +87.4% across the displayed period, while debt changed by -10.5%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Sources
Annual dividends as percentage of stock price
1.18% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Current Snapshot
6Y Avg Yield
1.2%
6% Requirement
6.0%
Gross Yield
1.7%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.25 and a share price of $21.22, the Barsi yield is 1.2%. The minimum requirement is 6%. Including franking credits, the gross yield is 1.7%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Low yield means you need significant capital to generate meaningful income. Barsi's strategy focuses on stocks that provide substantial cash flow from day one.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~7 Sept 2026Est | ~1 Oct 2026 | ~$0.19 | 100% | ~$0.13 | $0.06 |
| ~11 Mar 2027Est | ~30 Mar 2027 | ~$0.17 | 100% | ~$0.12 | $0.05 |
Highest price to lock in 6% yield
Industry category of the business
Technology is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
Software - Application
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Software - Application (Technology sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
The company is paying out more in dividends than it earns (167%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Current Snapshot
Latest Ratio
166.7%
Healthy Range
30%-75%
Zone
Unsustainable
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.39 dividend / $0.47 EPS equals 81.1% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
The company is paying out more in dividends than it earns (167%). This is unsustainable long-term and often signals a dividend cut ahead. An inflated payout also distorts the price ceiling calculation used in our analysis.
Sources
Netwealth Group Limited, a financial services company, engages in the wealth management business in Australia. The company operates a platform that offers superannuation, including accumulation and retirement income products; investor directed portfolio services for self-managed superannuation and non-superannuation investments; managed accounts and funds, self-managed superannuation funds administration; and non-custodial administration and reporting services. It also provides investment wrap products; investment options, such as listed and international securities, managed account models, managed funds, annuities, term deposits, premium services, and investor rewards; insurance products; forms and disclosure documents; and resources and tools, as well as advisory, licensee, and private wealth solutions. In addition, the company offers superannuation master fund; and portfolio management tools, performance tools, investment research tools, and mobile access tools.
It provides its financial services to investors and non-institutional intermediaries, including financial advisers, private clients, and high net worth firms. The company was founded in 1999 and is headquartered in Melbourne, Australia.
Who owns the company's shares and how much leadership has at stake
When leaders own 20%+, they win when you win and lose when you lose
A handful of professional investors are watching
Shares freely traded on the ASX by individual investors like you
The people running this company own a large chunk of it (46.4%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Current Snapshot
Insider %
46.4%
Institutional %
22.4%
Float %
31.2%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 46.4% and institutions own 22.4%, public float is 31.2%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
The people running this company own a large chunk of it (46.4%). When leadership has their own money on the line, they tend to make decisions that benefit all shareholders — not just their salary. Professional fund managers also hold shares, which is a vote of confidence in the business.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 3 June 2025 | Wachtel (Michael Howard) Director | Unknown | 7K | — |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Sustained high margins usually support durability. Sharp margin swings can signal weaker control or cyclical pressure.
Exceptional margins mean the company has strong pricing power - customers pay premium prices even when cheaper alternatives exist. This buffer protects profits (and dividends) even if costs rise.
Strong liquidity. 15.48 ratio means ample cash to cover short-term obligations.
Current Snapshot
Current Ratio
15.48x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 15.48x — it has $15.48 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Strong liquidity means the company can keep paying dividends even during temporary revenue drops. There's ample cash cushion to weather storms.
Sources
47.2% average ROE meets the threshold, but dropped to 0.0% in a weak year. Consistency matters in this framework.
Current Snapshot
10Y Avg
47.2%
Threshold
12.0%
Worst Year
0.0%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 47.2%, meaning each $1 of shareholder equity generates $0.47 in annual profit. The threshold is 12%, and the worst single year was 0.0%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
The average is solid, but the dip shows some vulnerability. At 47.2% ROE, every $1 retained generates $0.47 in annual profit — monitor whether the weak year was a one-off or a recurring pattern.
Sources
2.2% earnings yield is below the 7.5% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
2.2%
Required Yield
7.5%
Spread
-5.3pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.47 and a share price of $21.22, earnings yield is 2.2%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
How current price compares with estimated intrinsic value
Stock is trading 75% ABOVE the fair-value threshold (includes 30% margin of safety) and above the estimated intrinsic value.
Current Snapshot
Current Margin
-22.4%
Industry Threshold
30%
Status
22% Overvalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $17.33 per share, current price is $21.22, and margin of safety is -22.4%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
The market price is above both your required threshold and intrinsic value estimate. Under this methodology, there is no valuation buffer for estimate error or market volatility.
Sources
A healthy spread above WACC suggests value creation; a narrow or negative spread points to weaker capital efficiency.
Exceptional returns on capital mean every dollar reinvested creates significant value. This is the engine that can power both capital appreciation and growing dividends.
How much earnings are consumed by capital expenditure
Exceptionally capital-light. Only 7% of earnings consumed by CapEx — this is the type of business Buffett loves.
Current Snapshot
10Y CapEx Intensity
7%
Threshold
25%
Buffer
+18%
Why It Matters
CapEx intensity estimates how much of earnings must be reinvested just to sustain operations.
Formula
Cumulative CapEx (10yr) / Cumulative Net Income (10yr) x 100Method
Aggregate 10-year CapEx and net income, then compare the ratio with the sector threshold in the framework.
Worked Example
Over 10 years, 7% of this company's cumulative earnings were consumed by capital expenditure. The technology & software threshold is 25%, leaving a buffer of +18%.
How to Interpret
Lower ratios usually indicate better cash conversion. Higher ratios can reduce room for dividends and buybacks.
Very low capital requirements mean most profits are available for dividends, buybacks, or growth. This business generates wealth without needing to pour money back in — the hallmark of a durable competitive advantage.
Sources
Years of earnings needed to retire all long-term debt
Excellent. Could pay off all long-term debt in 0.1 years — minimal debt burden.
Current Snapshot
Payoff Years
0.1yr
Target Years
3yr
Gap
+2.9yr
Why It Matters
Debt payoff years converts leverage into an intuitive time measure, making debt burden easier to compare across stocks.
Formula
Long-Term Debt / Average Net Income (3yr)Method
Use current long-term debt and the 3-year average net income to smooth one-off profit noise.
Worked Example
With $12M in long-term debt and $89M in average annual earnings (3yr), it would take 0.1 years of earnings to pay off all debt. The technology & software threshold is 3 years.
How to Interpret
Lower values generally indicate stronger debt capacity. Very high values can constrain dividend resilience.
Very low debt means maximum financial flexibility. Interest costs barely dent profits, leaving more for dividends. This company can weather downturns without touching your income.
Sources
Percentage of revenue that becomes profit after all expenses
Exceptional 37.3% net margin signals a strong and durable competitive advantage.
Current Snapshot
Current Margin
37.3%
Threshold
20.0%
Relative Position
+17.3%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 37.3% — it keeps 37 cents of every revenue dollar as profit after all expenses. The technology & software threshold is 20%, putting it 17.3% above the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Outstanding profitability means this company converts a large share of every dollar earned into profit. This buffer protects dividends even if revenue dips — the hallmark of a moat.
Sources
Consistency of profits over time
8/4 positive EPS years. Limited data - full evaluation requires 8+ years. Monitor closely for consistency.
Current Snapshot
Positive Years
8/4
Allowed Losses
0 (limited)
EPS CAGR
26.9%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 8 of the last 4 years. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is 26.9%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
So far so good, but limited history means we haven't seen how this company handles a full economic cycle. Monitor closely for continued consistency.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 4 Mar 2026Interim | 26 Mar 2026 | $0.30 | 100% | $0.21 | $0.09 |
| 3 Sept 2025Final | 1 Oct 2025 | $0.21 | 0% | $0.21 | $0.00 |
| 5 Mar 2025Interim | 2 Apr 2025 | $0.17 | 0% | $0.17 | $0.00 |
| 26 Aug 2024Final | 23 Sept 2024 | $0.14 | 0% | $0.14 | $0.00 |
| 4 Mar 2024Interim | 1 Apr 2024 | $0.14 | 0% | $0.14 | $0.00 |
| 22 Aug 2023Final | 19 Sept 2023 | $0.13 | 0% | $0.13 | $0.00 |
| 22 Feb 2023Interim | 22 Mar 2023 | $0.11 | 0% | $0.11 | $0.00 |
| 30 Aug 2022Final | 27 Sept 2022 | $0.10 | 0% | $0.10 | $0.00 |
| 23 Feb 2022Interim | 23 Mar 2022 | $0.10 | 0% | $0.10 | $0.00 |
| 26 Aug 2021Final | 23 Sept 2021 | $0.10 | 0% | $0.10 | $0.00 |
9 years of consistent dividends meets Barsi's 6-year minimum requirement.
Current Snapshot
History
9yr
Predictability
Moderate
Payout Health
Elevated
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 9 years of dividend history (2018–2026). No suspensions detected — 9 consecutive years of payments. Predictability: Moderate. Payout health: Elevated. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A consistent track record through recent years gives confidence your income will continue. This company has shown commitment to shareholder returns.
Sources
Current price ($21.22) is 409% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$21.22
Max Buy Price
$4.17
Delta
-408.9%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $21.22 and a ceiling of $4.17, the entry is 408.9% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
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