WOLTERS KLUWER (WKL.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:WKL - NL0000395903 - Common Stock
80.56 EUR
-2.96 (-3.54%)
Overall WKL gets a fundamental rating of 5 out of 10. We evaluated WKL against 36 industry peers in the Professional Services industry. WKL has an excellent profitability rating, but there are concerns on its financial health. WKL is not valued too expensively and it also shows 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
- With an excellent Return On Assets value of 11.54%, WKL belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- WKL has a Return On Equity of 126.61%. This is amongst the best in the industry. WKL outperforms 97.22% of its industry peers.
- With an excellent Return On Invested Capital value of 18.22%, WKL belongs to the best of the industry, outperforming 83.33% 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 11.62%.
| 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 86.11% of the companies in the same industry.
- WKL's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 25.41%, WKL belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
- In the last couple of years the Operating Margin of WKL has grown nicely.
- WKL has a Gross Margin of 72.93%. This is in the better half of the industry: WKL outperforms 69.44% of its industry peers.
- WKL's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- WKL has a worse debt/assets ratio than last year.
2.2 Solvency
- WKL has an Altman-Z score of 2.45. 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.
- With a Altman-Z score value of 2.45, WKL perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- 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.
- WKL has a Debt to FCF ratio of 3.75. This is in the better half of the industry: WKL outperforms 69.44% of its industry peers.
- WKL has a Debt/Equity ratio of 5.81. This is a high value indicating a heavy dependency on external financing.
- WKL's Debt to Equity ratio of 5.81 is on the low side compared to the rest of the industry. WKL is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 2.45 |
ROIC/WACC2.81
WACC6.48%
2.3 Liquidity
- WKL has a Current 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.
- The Current ratio of WKL (0.71) is worse than 69.44% 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.
- Looking at the Quick ratio, with a value of 0.69, WKL is doing worse than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 12.03% 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 12.08% on average per year.
- Looking at the last year, WKL shows a small growth in Revenue. The Revenue has grown by 5.69% in the last year.
- Measured over the past years, WKL shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
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 9.34% yearly.
- Based on estimates for the next years, WKL will show a small growth in Revenue. The Revenue will grow by 5.31% on average per year.
EPS Next Y6.07%
EPS Next 2Y7.51%
EPS Next 3Y8.58%
EPS Next 5Y9.34%
Revenue Next Year3.79%
Revenue Next 2Y3.56%
Revenue Next 3Y4.41%
Revenue Next 5Y5.31%
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
- Based on the Price/Earnings ratio of 15.17, the valuation of WKL can be described as correct.
- Based on the Price/Earnings ratio, WKL is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, WKL is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 14.02, the valuation of WKL can be described as correct.
- 66.67% of the companies in the same industry are more expensive than WKL, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, WKL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as WKL.
- 66.67% of the companies in the same industry are more expensive than WKL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.5 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- WKL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)1.26
EPS Next 2Y7.51%
EPS Next 3Y8.58%
5. Dividend
5.1 Amount
- WKL has a Yearly Dividend Yield of 2.92%. Purely for dividend investing, there may be better candidates out there.
- In the last 3 months the price of WKL has falen by -24.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 2.39, WKL pays a bit more dividend than its industry peers.
- WKL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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 2Y7.51%
EPS Next 3Y8.58%
WOLTERS KLUWER / WKL.AS FAQ
What is the ChartMill fundamental rating of WOLTERS KLUWER (WKL.AS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WKL.AS.
What is the valuation status of WOLTERS KLUWER (WKL.AS) stock?
ChartMill assigns a valuation rating of 5 / 10 to WOLTERS KLUWER (WKL.AS). This can be considered as Fairly Valued.
How profitable is WOLTERS KLUWER (WKL.AS) stock?
WOLTERS KLUWER (WKL.AS) has a profitability rating of 9 / 10.
What is the earnings growth outlook for WOLTERS KLUWER?
The Earnings per Share (EPS) of WOLTERS KLUWER (WKL.AS) is expected to grow by 6.07% in the next year.
Is the dividend of WOLTERS KLUWER sustainable?
The dividend rating of WOLTERS KLUWER (WKL.AS) is 6 / 10 and the dividend payout ratio is 48.26%.