WOLTERS KLUWER (WKL.AS) Stock Fundamental Analysis
Europe - AMS:WKL - NL0000395903 - Common Stock
112.75 EUR
+1.4 (+1.26%)
WKL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 32 industry peers in the Professional Services industry. While WKL has a great profitability rating, there are quite some concerns on its financial health. WKL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years WKL has always been profitable.
Each year in the past 5 years WKL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.54%, WKL belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
WKL's Return On Equity of 126.61% is amongst the best of the industry. WKL outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.22%, WKL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WKL is significantly above the industry average of 11.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.54% | ||
| ROE | 126.61% | ||
| ROIC | 18.22% |
ROA(3y)11.08%
ROA(5y)9.99%
ROE(3y)57.29%
ROE(5y)47.31%
ROIC(3y)18.4%
ROIC(5y)16.55%
1.3 Margins
Looking at the Profit Margin, with a value of 18.48%, WKL belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Profit Margin of WKL has grown nicely.
Looking at the Operating Margin, with a value of 25.41%, WKL belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
In the last couple of years the Operating Margin of WKL has grown nicely.
The Gross Margin of WKL (72.93%) is better than 71.88% 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 | 25.41% | ||
| PM (TTM) | 18.48% | ||
| GM | 72.93% |
OM growth 3Y2.95%
OM growth 5Y3.49%
PM growth 3Y6.13%
PM growth 5Y4.69%
GM growth 3Y0.61%
GM growth 5Y0.72%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WKL is creating value.
Compared to 1 year ago, WKL has less shares outstanding
The number of shares outstanding for WKL has been reduced compared to 5 years ago.
WKL has a worse debt/assets ratio than last year.
2.2 Solvency
WKL has an Altman-Z score of 2.88. This is not the best score and indicates that WKL is in the grey zone with still only limited risk for bankruptcy at the moment.
WKL's Altman-Z score of 2.88 is in line compared to the rest of the industry. WKL outperforms 59.38% of its industry peers.
The Debt to FCF ratio of WKL is 3.75, which is a good value as it means it would take WKL, 3.75 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.75, WKL is doing good in the industry, outperforming 65.63% of the companies in the same industry.
A Debt/Equity ratio of 5.81 is on the high side and indicates that WKL has dependencies on debt financing.
WKL has a worse Debt to Equity ratio (5.81) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 2.88 |
ROIC/WACC2.68
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.71 indicates that WKL may have some problems paying its short term obligations.
WKL's Current ratio of 0.71 is on the low side compared to the rest of the industry. WKL is outperformed by 75.00% of its industry peers.
WKL has a Quick Ratio of 0.71. This is a bad value and indicates that WKL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.69, WKL is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
WKL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.03%, which is quite good.
The Earnings Per Share has been growing by 12.08% on average over the past years. This is quite good.
WKL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.69%.
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)12.03%
EPS 3Y13.71%
EPS 5Y12.08%
EPS Q2Q%14.41%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y7.43%
Revenue growth 5Y5.11%
Sales Q2Q%5.57%
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 9.41% yearly.
Based on estimates for the next years, WKL will show a small growth in Revenue. The Revenue will grow by 5.38% on average per year.
EPS Next Y6.99%
EPS Next 2Y7.78%
EPS Next 3Y8.41%
EPS Next 5Y9.41%
Revenue Next Year3.84%
Revenue Next 2Y3.75%
Revenue Next 3Y4.51%
Revenue Next 5Y5.38%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.23, which indicates a rather expensive current valuation of WKL.
Based on the Price/Earnings ratio, WKL is valued a bit cheaper than 65.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.57, WKL is valued a bit cheaper.
WKL is valuated rather expensively with a Price/Forward Earnings ratio of 19.53.
The rest of the industry has a similar Price/Forward Earnings ratio as WKL.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, WKL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WKL.
WKL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.89 | ||
| EV/EBITDA | 14.55 |
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)3.04
PEG (5Y)1.76
EPS Next 2Y7.78%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, WKL has a reasonable but not impressive dividend return.
WKL's Dividend Yield is a higher than the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.32, WKL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
On average, the dividend of WKL grows each year by 16.08%, which is quite nice.
Dividend Growth(5Y)16.08%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
48.26% 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.
DP48.26%
EPS Next 2Y7.78%
EPS Next 3Y8.41%
AMS:WKL (10/22/2025, 7:00:00 PM)
112.75
+1.4 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners66.96%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap26.22B
Revenue(TTM)6.08B
Net Income(TTM)1.12B
Analysts75.56
Price Target165.06 (46.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend2.19
Dividend Growth(5Y)16.08%
DP48.26%
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%
PT rev (3m)-4.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.03%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 19.53 | ||
| P/S | 4.31 | ||
| P/FCF | 18.89 | ||
| P/OCF | 15.4 | ||
| P/B | 29.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.55 |
EPS(TTM)5.31
EY4.71%
EPS(NY)5.77
Fwd EY5.12%
FCF(TTM)5.97
FCFY5.29%
OCF(TTM)7.32
OCFY6.49%
SpS26.14
BVpS3.81
TBVpS-25.28
PEG (NY)3.04
PEG (5Y)1.76
Graham Number21.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.54% | ||
| ROE | 126.61% | ||
| ROCE | 25.47% | ||
| ROIC | 18.22% | ||
| ROICexc | 21.25% | ||
| ROICexgc | N/A | ||
| OM | 25.41% | ||
| PM (TTM) | 18.48% | ||
| GM | 72.93% | ||
| FCFM | 22.84% |
ROA(3y)11.08%
ROA(5y)9.99%
ROE(3y)57.29%
ROE(5y)47.31%
ROIC(3y)18.4%
ROIC(5y)16.55%
ROICexc(3y)22.98%
ROICexc(5y)21.64%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)24.42%
ROCE(5y)22.04%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y1.41%
ROICexc growth 5Y2.52%
OM growth 3Y2.95%
OM growth 5Y3.49%
PM growth 3Y6.13%
PM growth 5Y4.69%
GM growth 3Y0.61%
GM growth 5Y0.72%
F-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 3.75 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 63.95% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 12.55 | ||
| Cash Conversion | 83.64% | ||
| Profit Quality | 123.6% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 2.88 |
F-Score5
WACC6.79%
ROIC/WACC2.68
Cap/Depr(3y)67.22%
Cap/Depr(5y)61.25%
Cap/Sales(3y)5.51%
Cap/Sales(5y)5.34%
Profit Quality(3y)123.59%
Profit Quality(5y)129.65%
High Growth Momentum
Growth
EPS 1Y (TTM)12.03%
EPS 3Y13.71%
EPS 5Y12.08%
EPS Q2Q%14.41%
EPS Next Y6.99%
EPS Next 2Y7.78%
EPS Next 3Y8.41%
EPS Next 5Y9.41%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y7.43%
Revenue growth 5Y5.11%
Sales Q2Q%5.57%
Revenue Next Year3.84%
Revenue Next 2Y3.75%
Revenue Next 3Y4.51%
Revenue Next 5Y5.38%
EBIT growth 1Y11.32%
EBIT growth 3Y10.6%
EBIT growth 5Y8.78%
EBIT Next Year36.54%
EBIT Next 3Y15.49%
EBIT Next 5Y10.88%
FCF growth 1Y8.1%
FCF growth 3Y8.4%
FCF growth 5Y8.87%
OCF growth 1Y6.57%
OCF growth 3Y8.58%
OCF growth 5Y8.46%