WOLTERS KLUWER (WKL.AS) Stock Fundamental Analysis
AMS:WKL - Euronext Amsterdam - NL0000395903 - Common Stock - Currency: EUR
WKL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Professional Services industry. While WKL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, WKL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WKL had positive earnings in the past year.
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 better Return On Assets (11.63%) than 88.89% of its industry peers.
WKL has a better Return On Equity (67.43%) than 100.00% of its industry peers.
The Return On Invested Capital of WKL (19.09%) is better than 85.19% of its industry peers.
WKL had an Average Return On Invested Capital over the past 3 years of 17.09%. This is significantly above the industry average of 11.50%.
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
WKL's Profit Margin of 18.03% is amongst the best of the industry. WKL outperforms 92.59% of its industry peers.
In the last couple of years the Profit Margin of WKL has grown nicely.
WKL has a Operating Margin of 24.09%. This is amongst the best in the industry. WKL outperforms 92.59% of its industry peers.
WKL's Operating Margin has improved in the last couple of years.
WKL has a Gross Margin of 72.21%. This is in the better half of the industry: WKL outperforms 70.37% of its industry peers.
In the last couple of years the Gross Margin of WKL has remained more or less at the same level.
| 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.
The number of shares outstanding for WKL has been reduced compared to 1 year ago.
WKL has less shares outstanding than it did 5 years ago.
WKL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.67 indicates that WKL is not in any danger for bankruptcy at the moment.
The Altman-Z score of WKL (4.67) is better than 88.89% 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 Debt to FCF ratio of 3.22. This is in the better half of the industry: WKL outperforms 74.07% of its industry peers.
A Debt/Equity ratio of 2.41 is on the high side and indicates that WKL has dependencies on debt financing.
WKL's Debt to Equity ratio of 2.41 is on the low side compared to the rest of the industry. WKL is outperformed by 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 4.67 |
ROIC/WACC2.87
WACC6.66%
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 81.48% of its industry peers.
A Quick Ratio of 0.76 indicates that WKL may have some problems paying its short term obligations.
WKL has a worse Quick ratio (0.76) than 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
WKL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.01%, which is quite good.
WKL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.18% yearly.
WKL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.08%.
Measured over the past years, WKL shows a small growth in Revenue. The Revenue has been growing by 5.57% on average per year.
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
Based on estimates for the next years, WKL will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.97% on average per year.
Based on estimates for the next years, WKL will show a small growth in Revenue. The Revenue will grow by 6.72% on average per year.
EPS Next Y5.83%
EPS Next 2Y9.1%
EPS Next 3Y9.62%
EPS Next 5Y8.97%
Revenue Next Year4.74%
Revenue Next 2Y6.49%
Revenue Next 3Y6.28%
Revenue Next 5Y6.72%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.08 indicates a quite expensive valuation of WKL.
Compared to the rest of the industry, the Price/Earnings ratio of WKL indicates a slightly more expensive valuation: WKL is more expensive than 70.37% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, WKL is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.46, WKL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WKL is valued a bit more expensive than the industry average as 74.07% of the companies are valued more cheaply.
WKL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.08 | ||
| Fwd PE | 32.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WKL is valued a bit more expensive than 74.07% of the companies in the same industry.
WKL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WKL is more expensive than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.77 | ||
| EV/EBITDA | 24.22 |
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)6.36
PEG (5Y)2.81
EPS Next 2Y9.1%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
WKL has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
WKL's Dividend Yield is slightly below the industry average, which is at 2.85.
Compared to an average S&P500 Dividend Yield of 2.28, WKL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of WKL grows each year by 13.74%, which is quite nice.
Dividend Growth(5Y)13.74%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
WKL pays out 47.83% of its income as dividend. This is a bit on the high side, but may be sustainable.
WKL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.83%
EPS Next 2Y9.1%
EPS Next 3Y9.62%
WOLTERS KLUWER
AMS:WKL (2/5/2025, 1:41:19 PM)
175.775
+0.97 (+0.56%)
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 Cap41.93B
Analysts71.58
Price Target178.32 (1.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.91
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)6.35%
PT rev (3m)7.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.21%
EPS NY rev (3m)-3.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.25%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.08 | ||
| Fwd PE | 32.46 | ||
| P/S | 7.29 | ||
| P/FCF | 35.77 | ||
| P/OCF | 28.21 | ||
| P/B | 27.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.22 |
EPS(TTM)4.74
EY2.7%
EPS(NY)5.42
Fwd EY3.08%
FCF(TTM)4.91
FCFY2.8%
OCF(TTM)6.23
OCFY3.54%
SpS24.11
BVpS6.45
TBVpS-18.67
PEG (NY)6.36
PEG (5Y)2.81
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 | 4.67 |
F-Score8
WACC6.66%
ROIC/WACC2.87
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 Y5.83%
EPS Next 2Y9.1%
EPS Next 3Y9.62%
EPS Next 5Y8.97%
Revenue 1Y (TTM)3.08%
Revenue growth 3Y6.65%
Revenue growth 5Y5.57%
Sales Q2Q%6.09%
Revenue Next Year4.74%
Revenue Next 2Y6.49%
Revenue Next 3Y6.28%
Revenue Next 5Y6.72%
EBIT growth 1Y10.45%
EBIT growth 3Y10.57%
EBIT growth 5Y10.13%
EBIT Next Year34.05%
EBIT Next 3Y16.22%
EBIT Next 5Y11.79%
FCF growth 1Y9.23%
FCF growth 3Y8.38%
FCF growth 5Y11.14%
OCF growth 1Y10.48%
OCF growth 3Y8.88%
OCF growth 5Y10.59%