What happened
WiseTech Global shares have fallen 40.8% since the start of 2025. Despite the price decline, the company reported strong profitability in its annual report, delivering gross margins of 84.00% and operating margins of 37.30%. The software provider's price-to-sales multiple currently stands at 13.11x, well below its five-year historical average of 31.86x, as revenue continued to grow over the past three years.
Why it matters here
WiseTech operates CargoWise, a software system used by 24 of the top 25 global freight forwarders. High gross margins and recurring subscription revenue make cloud software businesses highly capital efficient. A valuation multiple below historical averages offers Australian growth investors a potential re-entry point, provided international logistics demand and revenue momentum remain intact.
What to watch
Upcoming corporate trading updates, annual general meeting guidance, and customer adoption metrics for the CargoWise platform across major third-party logistics providers globally.
Source
raskmedia.com.au