In a striking display of growth, WiseTech Global (ASX: WTC) shares have soared, nearly doubling over the past year (+95%) to an all-time high of $134.40. This impressive surge in share value has largely been attributed to the company’s strong financial performance and its strategic acquisitions, which have expanded its global footprint. WiseTech Global, primarily known for its logistics software solutions, is now valued at a hefty $44.2 billion in market cap.
The trend over the past 5 years has been resoundingly bullish for WiseTech’s shares, with healthy retracements followed by continued periods of strength.
Fiscal Year 24 has been a year of robust growth for WiseTech, albeit with a slight miss on expectations. The company reported a 28% rise in revenue, reaching $1.04 billion. A significant contributor to this growth has been WiseTech’s product CargoWise, which itself saw a substantial revenue increase of 33%, bringing in $880.3 million.
More pivotal to understanding the company’s financial health is its EBITDA, which expanded by 28%, amounting to $495.6 million. Furthermore, the underlying net profit after tax (NPAT) rose by 15% to $283.5 million, indicating a solid operational performance. This financial stability has enabled WiseTech to reward its shareholders with a 10% increase in its final dividend payment, bringing it to 9.2 cents per share for FY24.
Looking forward, WiseTech has projected its revenue for FY25 to be between $1.3 and $1.35 billion. If achieved, this would represent an annual growth rate of 23.9%, showcasing the company’s confidence in its ability to continue this upward trajectory.
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The company’s aggressive growth strategy can be attributed to its acquisition streak, with 38 acquisitions since 2015. These acquisitions have an average deal size of $87.9 million, highlighting the company’s commitment to scaling up and capturing a larger market share in the logistics software sector.
WiseTech Global’s recent financial success and market performance paint a picture of a thriving company with a clear vision for the future. With its strong revenue growth, promising projections, and a strategy that involves expanding through acquisitions, WiseTech looks set to maintain its position as a leader in the logistics software industry.
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