SelfWealth (ASX:SWF) share price falls despite accelerating growth

The trading platform is eyeing new global markets, beta testing for crypto and educational content for members

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The SelfWealth Ltd (ASX: SWF) share price has struggled to make headway this year, down 37% year-to-date. At the time of writing, shares are swapping hands for 34.5 cents apiece — a 2.82% drop on yesterday's closing price.

Despite its underperformance, the business has managed to deliver very strong growth rates as the Australian investing landscape continues to grow rapidly.

SelfWealth held its annual general meeting (AGM) on Thursday, which reiterated some of the company's key achievements, growth initiatives, and outlook.

A man talking on his mobile phone looks uncertain

Image source: Getty Images

SelfWealth's growth journey so far

The SelfWealth share price slipped 2% in FY21 despite the company delivering record results. These included:

  • Revenue surging 135% to $18.4 million;
  • Active traders increasing 105% to 95,189;
  • Positive operating cash flow of $1.1 million driven by strong revenue growth and disciplined cost control;
  • Gross profit margins of 41.4%, up from 33.4% in FY20; and
  • US trading launched in December 2020 and adopted by 29% of total active traders within the first six months.

SelfWealth described FY21 as a year where it "refined" vision, transitioning from a sole focus on ASX-listed equities to becoming a much broader wealth creation platform.

What's next for SelfWealth and its share price?

Investors will be hoping the company's plans spell good news for the SelfWealth share price. SelfWealth is on a mission to grow its market share to become the second-largest online trading platform (currently No. 4).

The retail trading environment has rapidly evolved in favour of SelfWealth's business, where its addressable market has doubled since January 2020 thanks to a jump in trading interest.

According to Investment Trends, Selfwealth's market share is gathering momentum, recently passing a big four bank and currently ranked number 4 for market share.

The AGM slides highlighted SelfWealth as ranked 183 of all websites in Australia. By comparison, Commsec, NAB Trade, CMC, and Stake sit at 58, 225, 346, and 415 respectively.

Looking ahead, SelfWealth has an exciting product roadmap including offering traders new global markets, beta testing for cryptocurrencies, and educational content for members in 2Q22.

The SelfWealth share price remains subdued despite its exciting growth plans and sector tailwinds.

This has happened in the past following the company's record FY21 full-year results announcement and recent first-quarter activities update.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Military engineer works on drone.
Capital Raising

EOS shares halted after huge run as $175 million raising lands

EOS investors have plenty to watch tomorrow.

Read more »

Red sell button on an Apple keyboard.
Broker Notes

Sell alert! Why this expert is calling time on Technology One shares

A leading analyst foresees growing headwinds for Technology One shares.

Read more »

An old-fashioned news boy stands on a stool and yells through a microphone in an open field.
Share Market News

Why is everyone talking about Elders, Brambles and New Hope shares on Monday?

Brambles, Elders, and New Hope shares are making waves today. But why?

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Broker Notes

Buy, hold, sell: James Hardie, NextDC, and WiseTech shares

Analysts have given their verdict on these popular shares this week.

Read more »

Young boy in business suit punches the air as he finishes ahead of another boy in a box car race.
Share Market News

Why I think DroneShield and these ASX growth shares could beat the market over 10 years

This is not a low-risk group, but each business has a large opportunity and room to grow over the next…

Read more »

Two boys looking at each other while standing by the start line with two schoolgirls.
Share Market News

4 ASX 200 shares I'd buy with $5,000 this week

And they're all tipped to climb higher over the next 12 months.

Read more »

steps to picking asx shares represented by four lightbulbs drawn on chalk board
Opinions

Why I'm planning to re-invest my dividends into this ASX share this week

This business is exactly what I want to invest in...

Read more »

A sad looking scientist sitting and upset about a share price fall.
Share Market News

This ASX 200 healthcare stock has crashed to a multi-year low: Here's why and what's next

Fisher & Paykel Healthcare Corporation shares tumbled another 3% on Friday.

Read more »