NWL: A platform of growth
Last month I wrote an article about a stock that is a quality compounder, PWR Holdings (ASX:PWH). (Read here). Another Australasian stock that meets the criteria for a quality compounder is Netwealth (ASX:NWL). The concept is based on an article written by Stockopedia contributor Roland Head, where he built a screen to find quality stocks that are strong compounders. (Building a screen to find Compounding Quality stocks) I took this screen and applied it in the Australasian context. 14 stocks currently meet all of the criteria.
Netwealth is one of the fastest growing financial services companies in Australia. Founded in 1999, in 2023 they are forecast to have generated $214 million in revenue. Revenue has been growing at a compound annual growth of 23% over the last five years and ten years ago was only $43 million.
Netwealth provides a digital platform that supports how financial products are delivered to the market. They service both financial advisors and personal investors. They provide clients with access to financial products including superannuation, investor directed portfolio services, managed accounts, managed funds, SMSF administration and aggregated reporting services.
Growth in Funds under Administration (FUA) and Funds under...