Full Year 2024 Wam Capital Ltd Earnings Call Transcript
Key Points
- WAM Capital Ltd (ASX:WAM) outperformed the market significantly, with WAM Capital outperforming by 14% and WAM Research by 18% against the All Ordinaries Index.
- The company successfully deployed all proceeds from a $90 million capital raise in April, with strong performance from the invested stocks in the June quarter.
- WAM Active outperformed its benchmark by 26%, benefiting from increased capital markets activity and discounted stock lines.
- The company has a strong dividend yield, trading at a fully franked dividend yield of around 10%, compared to the market average of 4%.
- WAM Capital has 1.5 years of dividend coverage in its profit reserve, an improvement from 0.7 years the previous year, indicating better dividend sustainability.
- The share price of WAM Capital has declined over the past 12 months, despite strong performance, attributed to cyclical factors and a reduction in premium to net tangible assets.
- There has been a lack of expected capital markets activity, with only one initial public offering invested in since the April capital raise.
- Small-cap companies have underperformed larger companies, with a 2.4% headwind in the small-cap sector during the reporting season.
- The company faces challenges with the underperformance of small caps, which is seen as cyclical but has persisted into the 2025 financial year.
- The dividend payout is high, requiring the portfolio to increase by over 16% annually just to maintain the current dividend level, which has led to a decline in net tangible assets.
I'd like to welcome everyone dialing in today for this afternoon's call to discuss WAM Capital, WAM Microcap, WAM Research, and WAM Actives full-year 2024 results. My name is Oscar Oberg, and with me is Tobias Yao, the portfolio managers of the four small-cap funds that we're talking about today. And also online is Bridget Thelander, who will be moderating the question-and-answer session.
Now Tobias and I had a bet before the call today, and we said also we might go to 3 hours. I think record is to 2 hours, 40 minutes. Tobias is 2 hours. I'm backing 3 hours. I've got to pick up my kids though from school. So unfortunately, it's got to be a hard stop at 3:00, otherwise, we'll get divorced.
So anyway, before we begin a disclaimer is displayed for you in this presentation, and obviously what we discuss today is general in nature and not financial advice.
So in terms of how the call will run today, I'll talk about the year that was in 2024. I'll talk about how we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
