WOLTERS KLUWER (WKL.AS)
NL0000395903 - Common Stock
Overall WKL gets a fundamental rating of 5 out of 10. We evaluated WKL against 29 industry peers in the Professional Services industry. WKL scores excellent on profitability, but there are some minor concerns on its financial health. WKL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WKL was profitable.
In the past year WKL had a positive cash flow from operations.
Each year in the past 5 years WKL has been profitable.
Each year in the past 5 years WKL had a positive operating cash flow.
1.2 Ratios
WKL has a Return On Assets of 11.63%. This is amongst the best in the industry. WKL outperforms 85.71% of its industry peers.
The Return On Equity of WKL (67.43%) is better than 96.43% of its industry peers.
WKL's Return On Invested Capital of 19.09% is amongst the best of the industry. WKL outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WKL is significantly above the industry average of 10.91%.
The last Return On Invested Capital (19.09%) for WKL is above the 3 year average (17.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 67.43% | ||
| ROIC | 19.09% |
ROA(3y)9.98%
ROA(5y)9.24%
ROE(3y)44.05%
ROE(5y)38.96%
ROIC(3y)17.09%
ROIC(5y)15.68%
1.3 Margins
With an excellent Profit Margin value of 18.03%, WKL belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
WKL's Profit Margin has improved in the last couple of years.
WKL has a better Operating Margin (24.09%) than 89.29% of its industry peers.
In the last couple of years the Operating Margin of WKL has grown nicely.
With a decent Gross Margin value of 72.21%, WKL is doing good in the industry, outperforming 64.29% of the companies in the same industry.
WKL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.09% | ||
| PM (TTM) | 18.03% | ||
| GM | 72.21% |
OM growth 3Y3.67%
OM growth 5Y4.32%
PM growth 3Y4.81%
PM growth 5Y3.2%
GM growth 3Y0.61%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WKL is creating value.
Compared to 1 year ago, WKL has less shares outstanding
WKL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WKL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.38 indicates that WKL is not in any danger for bankruptcy at the moment.
WKL has a Altman-Z score of 4.38. This is amongst the best in the industry. WKL outperforms 92.86% of its industry peers.
WKL has a debt to FCF ratio of 3.22. This is a good value and a sign of high solvency as WKL would need 3.22 years to pay back of all of its debts.
WKL has a better Debt to FCF ratio (3.22) than 71.43% of its industry peers.
WKL has a Debt/Equity ratio of 2.41. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of WKL (2.41) is worse than 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 4.38 |
ROIC/WACC2.84
WACC6.73%
2.3 Liquidity
WKL has a Current Ratio of 0.78. This is a bad value and indicates that WKL is not financially healthy enough and could expect problems in meeting its short term obligations.
WKL's Current ratio of 0.78 is on the low side compared to the rest of the industry. WKL is outperformed by 85.71% of its industry peers.
WKL has a Quick Ratio of 0.78. This is a bad value and indicates that WKL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WKL (0.76) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.01% over the past year.
Measured over the past years, WKL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.18% on average per year.
Looking at the last year, WKL shows a small growth in Revenue. The Revenue has grown by 3.08% in the last year.
WKL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.57% yearly.
EPS 1Y (TTM)11.01%
EPS 3Y13.28%
EPS 5Y13.18%
EPS Q2Q%8.76%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y6.65%
Revenue growth 5Y5.57%
Sales Q2Q%6.09%
3.2 Future
WKL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.69% yearly.
WKL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.45% yearly.
EPS Next Y9.34%
EPS Next 2Y9.45%
EPS Next 3Y9.67%
EPS Next 5Y8.69%
Revenue Next Year6.07%
Revenue Next 2Y6.22%
Revenue Next 3Y6.21%
Revenue Next 5Y6.45%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.65, which means the current valuation is very expensive for WKL.
WKL's Price/Earnings ratio is a bit more expensive when compared to the industry. WKL is more expensive than 67.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of WKL to the average of the S&P500 Index (27.54), we can say WKL is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.26 indicates a quite expensive valuation of WKL.
Based on the Price/Forward Earnings ratio, WKL is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
WKL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 29.26 |
4.2 Price Multiples
WKL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. WKL is more expensive than 78.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WKL is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.46 | ||
| EV/EBITDA | 22.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WKL does not grow enough to justify the current Price/Earnings ratio.
WKL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.6
PEG (5Y)2.55
EPS Next 2Y9.45%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
WKL has a Yearly Dividend Yield of 1.37%.
WKL's Dividend Yield is comparable with the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 2.36, WKL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of WKL is nicely growing with an annual growth rate of 13.74%!
Dividend Growth(5Y)13.74%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
47.83% of the earnings are spent on dividend by WKL. This is a bit on the high side, but may be sustainable.
The dividend of WKL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP47.83%
EPS Next 2Y9.45%
EPS Next 3Y9.67%
WOLTERS KLUWER
AMS:WKL (12/24/2024, 7:00:00 PM)
159.5
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners71.66%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap38.04B
Analysts71.58
Price Target166.77 (4.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Dividend Growth(5Y)13.74%
DP47.83%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.9%
PT rev (3m)1.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.65 | ||
| Fwd PE | 29.26 | ||
| P/S | 6.62 | ||
| P/FCF | 32.46 | ||
| P/OCF | 25.6 | ||
| P/B | 24.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.23 |
EPS(TTM)4.74
EY2.97%
EPS(NY)5.45
Fwd EY3.42%
FCF(TTM)4.91
FCFY3.08%
OCF(TTM)6.23
OCFY3.91%
SpS24.11
BVpS6.45
TBVpS-18.67
PEG (NY)3.6
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 67.43% | ||
| ROCE | 24.31% | ||
| ROIC | 19.09% | ||
| ROICexc | 22.39% | ||
| ROICexgc | N/A | ||
| OM | 24.09% | ||
| PM (TTM) | 18.03% | ||
| GM | 72.21% | ||
| FCFM | 20.38% |
ROA(3y)9.98%
ROA(5y)9.24%
ROE(3y)44.05%
ROE(5y)38.96%
ROIC(3y)17.09%
ROIC(5y)15.68%
ROICexc(3y)22.99%
ROICexc(5y)21.42%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.94%
ROCE(5y)20.79%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y9.26%
ROICexc growth 5Y9.26%
OM growth 3Y3.67%
OM growth 5Y4.32%
PM growth 3Y4.81%
PM growth 5Y3.2%
GM growth 3Y0.61%
GM growth 5Y0.63%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.22 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 68.86% | ||
| Cap/Sales | 5.46% | ||
| Interest Coverage | 15.56 | ||
| Cash Conversion | 80.72% | ||
| Profit Quality | 113.02% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 4.38 |
F-Score8
WACC6.73%
ROIC/WACC2.84
Cap/Depr(3y)62.28%
Cap/Depr(5y)57.66%
Cap/Sales(3y)5.41%
Cap/Sales(5y)5.26%
Profit Quality(3y)130.36%
Profit Quality(5y)131.01%
High Growth Momentum
Growth
EPS 1Y (TTM)11.01%
EPS 3Y13.28%
EPS 5Y13.18%
EPS Q2Q%8.76%
EPS Next Y9.34%
EPS Next 2Y9.45%
EPS Next 3Y9.67%
EPS Next 5Y8.69%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y6.65%
Revenue growth 5Y5.57%
Sales Q2Q%6.09%
Revenue Next Year6.07%
Revenue Next 2Y6.22%
Revenue Next 3Y6.21%
Revenue Next 5Y6.45%
EBIT growth 1Y10.45%
EBIT growth 3Y10.57%
EBIT growth 5Y10.13%
EBIT Next Year34.05%
EBIT Next 3Y16.22%
EBIT Next 5Y11.51%
FCF growth 1Y9.23%
FCF growth 3Y8.38%
FCF growth 5Y11.14%
OCF growth 1Y10.48%
OCF growth 3Y8.88%
OCF growth 5Y10.59%