Today Selfwealth (SWF.ASX) released theur FY21 Half year results to the market.

So Who is Selfwealth?

SelfWealth is the solution to a problem Australian investors have been frustrated with for years: how to access the world’s most cutting edge investment insights, without breaking the bank. Launching in 2012 Selfwealth is Australia’s first flat fee online broker.

So why is Selfwealth Down 10%?

Selfwealth seems to have delivered strong H1 results, so its very unusual that the stock is trading down 10%. Some of the results can be summarised below:

Half Year Revenue Increase+278%
Increase in Total Platform Trades+379%
Total Assets on HIN$4.3billion
Source Company H1 Report 2021

Given the strong increase in results its very unusual that the company fell 10%.

But I suppose expectaions are already set high with the market cap currently sitting at 154million. However, word on the street is this will be cheap compared to the Superhero IPO which is scheduled for H2 2021.

From the report the company is rapidly growing their funds under administration, now up to 4.3billion.

Source H1 Report

As you can see in the below table from the H1 report the company is growing key metrics accross the board massively. But, one worrying sign is that they are still a loss making company, albeit this loss has been steadily reducing over the past number of years.

So does the company have enough cash on hand to buy it through the next half? Let’s take a look. According to the appendix 4C lodged by the company in January 2021, the company had 7million dollar’s in cash or equivelents in the bank.

We beleive this should be sufficient given the reduction in spending, however should Selfwealth wish to continue to push their marketing and expand their US share position we believe they will have to raise cash from investors. Perhaps as early as H1 2022.

We are currently buying Selfwealth Shares at Prophet and believe there is further upside to the share price given the massive growth the company is experiencing.

Please Remember all Articles Published on Prophet Invest are Opinion only

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