Why ASX300 Tech Players Like WiseTech (ASX:WTC) Stand Out in 2025

May 16, 2025 12:03 PM AEST | By Team Kalkine Media

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Why ASX300 Tech Players Like WiseTech (ASX:WTC) Stand Out in 2025 — Image source: shutterstock

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Highlights

WiseTech Global (WTC) shows strong global SaaS growth.

Tech margins outpace traditional industries.

ASX IT sector continues to outperform broader indices.

WiseTech Global (ASX:WTC), a leading software provider in the logistics space, has seen its share price retreat by 16.2% since the start of 2025. Despite this decline, the company’s fundamentals and sector positioning continue to attract investor attention, especially within the high-growth Information Technology segment of the ASX300 index.

Founded in 1994, WiseTech Global specialises in cloud-based software that supports the global logistics industry. Its flagship product, CargoWise, is used by 24 of the world’s top 25 freight forwarders and 46 of the top 50 third-party logistics providers. This level of adoption underlines the company’s strong market position and recurring revenue model.

WiseTech's strength lies in its Software-as-a-Service (SaaS) model. This approach allows for predictable, recurring revenue—something increasingly valued during uncertain economic times. The company’s most recent financials revealed impressive gross margins of 84% and an operating margin of 37.3%, reflecting the lean cost structure that’s typical of software businesses.

Zooming out to the broader sector, the S&P/ASX 200 Info Tech Index (ASX:XIJ) has delivered an average annual return of 14.81% over the past five years—noticeably higher than the ASX 200’s 8.73%. This performance continues to boost attention toward tech names like WiseTech and others in the S&P/ASX300.

What helps differentiate the tech sector from more traditional industries is scalability. Unlike companies constrained by physical infrastructure, tech firms can expand globally with fewer barriers. WiseTech’s cloud-based logistics platform is a textbook example of this scale advantage—providing software to clients in over 160 countries.

When it comes to valuation, WiseTech Global is currently trading at a price-to-sales ratio of 33.33x, above its five-year average of 31.86x. This suggests the stock is priced at a premium relative to its past, though revenue growth trends provide some context for this valuation.

For those exploring sector diversity in their portfolios, the IT sector offers both growth and margin potential, which is particularly attractive in comparison to traditional sectors like energy or manufacturing. While WiseTech may not fall into the category of traditional ASX dividend stocks, its strong operating metrics and recurring revenue model continue to generate interest.

As part of the ASX300 index, WiseTech remains a standout name among technology peers, offering exposure to global logistics digitisation trends and long-term SaaS-driven growth.

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