Wisr Limited Share Price Flat on Results [ASX:WZR]

At time of writing the Wisr Ltd [ASX:WZR] share price trades at 18.5 cents.

In a recent announcement, the company recorded fantastic growth again.

Wisr share price movement 2020

Source: Optuma

Wisr and 2020

Throughout the previous year, the company saw huge amounts of growth in their business throughout the COVID-19 pandemic.

The prolonged growth gave Wisr 35% quarter-on-quarter growth leading into Q2FY21.

As more and more people applied for credit throughout the year, the company also noticed that the average credit score of applicants was 757.

The national average is 600.

Higher credit scores of applicants not only create a stronger loan book for the company but helped record the below results:

  • Record new loan origination growth of $83.8 million, a 35% increase on Q1FY21 ($61.9 million)
  • This represents a 165% increase on Q2FY20 ($31.6 million)
  • Total loan originations of $390.5 million as at 31 December 2020
  • Improved Q2FY21 average credit score of 757 validates the company’s risk governance, lending model and continued ability to attract Australia’s prime customers away from the incumbents, whilst driving strong growth
  • Recently launched secured vehicle loan product delivering strong initial results

Wisr made the best out of 2020, but this hasn’t completely translated over to the share price.

Wisr and 2021

At time of writing WZR held a market cap of $202 million.

The share price moved up more than 323% from the March low in 2020 to the high in July.

Since the high, the price has fallen away onto a lower trading volume, to where it trades today.

WZR share price movement 2021

Source: Optuma

Over the last few months, the share price moved sideways on a lower trading volume.

The bars on the chart also show that liquidity may be an issue as the share price looks to trade in a specific range.

Should the price break out of the patten and move up then the level of 21 cents may provide future resistance.

If the price declines, then the level of 17 cents may become the focus.

2020 was a great year for the company in terms of their loan book, having applicants with solid credit scores and showing quarter on quarter growth.

This doesn’t look to have transferred over to the share price though.

With the share price in a holding pattern at this stage, Wisr is not a company the looks to be worth investing in right now.

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Carl Wittkopp

For Money Morning

Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

Money Morning Australia