Why WiseTech (ASX:WTC) Remains in the Spotlight Despite Recent Share Price Movement

June 16, 2025 11:40 AM AEST | By Team Kalkine Media

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Why WiseTech (ASX:WTC) Remains in the Spotlight Despite Recent Share Price Movement — Image source: shutterstock

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Highlights

WTC offers robust global logistics solutions with top-tier clientele.

High gross margins and SaaS-based recurring revenue stand out.

Current valuation reflects sustained revenue momentum.

The share price of WiseTech Global (ASX:WTC), a prominent player in logistics technology, has seen a decline of approximately 14.9% since the beginning of 2025. Yet, a closer look at the company’s fundamentals reveals continued interest in its long-term prospects driven by its operational strengths, high margins, and global software reach.

The Business Backbone: Cloud Solutions for Global Logistics

Founded in 1994, WiseTech Global has carved a leading position in the cloud-based logistics software space. Its flagship platform, CargoWise, is widely regarded as a critical tool in the freight and logistics industry. It is deployed by 24 out of the 25 largest global freight forwarders and 46 of the top 50 third-party logistics providers, underscoring its global adoption and industry relevance.

The product suite extends across forwarding and customs, transport management systems, warehousing, and more — creating an ecosystem that simplifies complex logistics operations on a global scale.

Tech Sector Edge: Margins and Recurring Revenue

The appeal of companies like WiseTech also lies in their strong financial profile. According to its latest annual report, WiseTech reported an impressive gross margin of 84.00% and an operating margin of 37.30%. Such margins are significantly higher than those typically seen in traditional industries, supported by scalable software models and limited overheads.

Another notable strength is the company’s recurring revenue model. As a Software-as-a-Service (SaaS) business, WiseTech benefits from predictable income streams, improved customer retention, and scalable growth. This model continues to offer financial consistency and operational flexibility.

Global Reach Without Borders

What sets tech-driven logistics companies apart is their ability to scale globally with minimal physical constraints. While traditional firms often face hurdles such as regulations, infrastructure costs, and geopolitical risks, software-centric enterprises like WiseTech reach new markets simply through digital access. This significantly reduces cost and complexity while expanding global exposure.

Current Valuation: Reading Between the Lines

At present, WiseTech shares are trading at a price-to-sales (P/S) ratio of 33.85x, slightly above their five-year average of 31.86x. While this premium may imply heightened investor expectations, it's important to note that the company’s revenue has grown consistently over the past three years — lending support to its higher valuation level.

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