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WisdomTree

WT
67
Asset Management · Financial Services
Price
$20.05
-0.11 (-0.55%)
Market Cap
$3.07B
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.

WisdomTree is a financial company that creates and manages exchange-traded funds, or ETFs. ETFs are baskets of investments that people can buy and sell on a stock exchange, similar to buying a single stock. WisdomTree offers around 80 ETFs in the United States and hundreds more globally, covering stocks, bonds, currencies, and commodities, with a focus on "smart beta" strategies that weight holdings differently than traditional index funds.

The company earns money by charging small annual fees, called expense ratios, on the assets held in its funds. It operates primarily in the U.S. and Europe, managing roughly $100 billion in assets. WisdomTree's competitive edge comes from its proprietary index methodologies and its early-mover position in dividend-weighted and currency-hedged ETFs. The main growth driver is attracting new investor money into its funds, but the business faces real risk from fee compression, as larger rivals like BlackRock and Vanguard continue to cut costs and dominate the ETF market.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+47.5% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-200.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (7%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

12.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$626M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

WisdomTree grew revenue 48% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 145.1M (2021) → 144.9M (2025)

Score breakdown

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Quality

Gross Margin
77.6%
Premium pricing power — 77.6% gross margin
Operating Margin
38.4%
Excellent — 38.4% operating margin
ROCE
3.7%
Weak — 3.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+24.2%
Fast-growing sales (24.2% YoY)
EPS YoY
+19.4%
Earnings growing fast (19.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
263%
Turns 263% of profit into real cash
FCF Margin
29.6%
Converts sales into free cash efficiently (29.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
2.53
Heavy debt load (2.53)
Interest Cover
5.59x
Adequate interest coverage (5.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
46.6x
Expensive — P/E 46.6

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+30.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (46.6 → 16.0)

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Dividends

Dividend Yield
0.65%
Small dividend — 0.65% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+0.0%
Dividend flat

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