AUS
NZ
UK
CA
USA
IND
Highlights
- Netwealth Group sees a notable rise in share price during 2024.
- Wesfarmers remains strong with diverse operations across multiple industries.
- Key focus areas include performance trends and company backgrounds for both NWL and WES.
Netwealth Group Ltd and Wesfarmers Ltd are two Australian companies that have garnered attention due to their stock performance this year. While Netwealth has seen a substantial rise in its share price since the start of 2024, Wesfarmers continues to be a key player with its diversified operations. Here’s a closer look at their current standing and what makes these companies significant on the ASX.
Netwealth Group (ASX:NWL)
Founded in 1999, Netwealth is a wealth management company that offers a platform for financial planners to manage client funds effectively. The company has grown significantly over the years, currently managing over 140,000 accounts and more than $88 billion in funds under administration (FUA). This robust growth and user-friendly platform are central to Netwealth's increasing popularity in the financial services sector.
In 2024, Netwealth’s share price has surged by approximately 78%. A major contributing factor to this growth could be the ease of use of its platform, which enables clients to manage investments, track performance, and generate financial reports seamlessly. Additionally, the company’s scale allows it to compete efficiently in the wealth management space.
From a valuation perspective, the price-to-sales ratio of Netwealth shares currently stands at 26.47x, compared to its five-year average of 23.72x. This indicates that the stock is trading higher than its historical average, suggesting either an increase in share price or a decline in sales growth. It’s important to note that revenue has been steadily increasing over the past three years, further driving the company's upward momentum.
Wesfarmers Ltd (ASX:WES)
Wesfarmers, founded in 1914, is one of Australia's largest and most diversified companies. Headquartered in Perth, its operations span across Australia and New Zealand, covering retail, chemical production, fertilizers, and industrial and safety products. Wesfarmers has a history of strategic acquisitions and reinvestments, with a notable example being its ownership of Coles Group, which was purchased in 2007 and spun out in 2018.
A significant portion of Wesfarmers' profitability comes from its investment in Bunnings, Australia’s leading hardware and home improvement retailer. The company initially invested in Bunnings in 1987 and fully acquired it in 1994. Bunnings now accounts for over 50% of Wesfarmers' operating profits, highlighting its critical role in the conglomerate's overall performance.
As of 2024, Wesfarmers' share price remains 43.6% off its 52-week low, showcasing the company’s stability and growth potential across its broad range of industries.
These two companies, NWL and WES, continue to demonstrate their strength in their respective sectors, making them prominent names on the ASX this year.
