WisdomTree Inc. Common Stock (WT)

FairStock Score: 66/100 — STEADY

Key Financials

Strengths

• Generates $120 million in annual free cash flow (5.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 26.8% demonstrating efficient capital deployment
• Revenue growth of 33.2% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 139% margin of safety—limited downside protection
• High leverage at 2.31x debt-to-equity increases financial risk and interest expense burden

AI Analysis

WisdomTree Inc. Common Stock is a small-cap financial services company valued at $2.4 billion. The business generates $494 million in annual revenue with a 8.1% net margin and $120 million in free cash flow. From a quality standpoint, WisdomTree shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 1.9 in the grey zone. On valuation, the stock is reasonably priced at 22.6x earnings, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 33.2% and profit growth of 46.6%. Our composite FairStock Score of 66/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

WisdomTree's 33% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. With $120 million in annual free cash flow (5.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 2.3x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer