WOLTERS KLUWER (WKL.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:WKL - NL0000395903 - Common Stock
88.34 EUR
-0.84 (-0.94%)
Overall WKL gets a fundamental rating of 5 out of 10. We evaluated WKL against 32 industry peers in the Professional Services industry. While WKL belongs to the best of the industry regarding profitability, there are concerns on its financial health. WKL has a decent growth rate and is not valued too expensively.
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.
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
WKL's Return On Assets of 11.54% is amongst the best of the industry. WKL outperforms 93.75% of its industry peers.
Looking at the Return On Equity, with a value of 126.61%, WKL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WKL has a Return On Invested Capital of 18.22%. This is amongst the best in the industry. WKL outperforms 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WKL is significantly above the industry average of 10.58%.
| 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
WKL has a better Profit Margin (18.48%) than 87.50% of its industry peers.
In the last couple of years the Profit Margin of WKL has grown nicely.
With an excellent Operating Margin value of 25.41%, WKL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of WKL has grown nicely.
WKL's Gross Margin of 72.93% is fine compared to the rest of the industry. WKL outperforms 68.75% 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
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.
The debt/assets ratio for WKL is higher compared to a year ago.
2.2 Solvency
WKL has an Altman-Z score of 2.52. 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.
Looking at the Altman-Z score, with a value of 2.52, WKL is in line with its industry, outperforming 46.88% 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.
Looking at the Debt to FCF ratio, with a value of 3.75, WKL is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
WKL has a Debt/Equity ratio of 5.81. This is a high value indicating a heavy dependency on external financing.
WKL has a worse Debt to Equity ratio (5.81) than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 2.52 |
ROIC/WACC2.78
WACC6.55%
2.3 Liquidity
A Current Ratio of 0.71 indicates that WKL may have some problems paying its short term obligations.
With a Current ratio value of 0.71, WKL is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
A Quick Ratio of 0.69 indicates that WKL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, WKL is doing worse than 68.75% of the companies in the same industry.
| 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.
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.
The Revenue has been growing slightly by 5.69% in the past 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
Based on estimates for the next years, WKL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.66% on average per year.
Based on estimates for the next years, WKL will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
EPS Next Y6.22%
EPS Next 2Y7.68%
EPS Next 3Y8.65%
EPS Next 5Y9.66%
Revenue Next Year3.79%
Revenue Next 2Y3.56%
Revenue Next 3Y4.41%
Revenue Next 5Y5.62%
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 16.64, which indicates a correct valuation of WKL.
Based on the Price/Earnings ratio, WKL is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.51, WKL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.33, the valuation of WKL can be described as correct.
Based on the Price/Forward Earnings ratio, WKL is valued a bit cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. WKL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
WKL's Enterprise Value to EBITDA ratio is in line with the industry average.
WKL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.8 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WKL may justify a higher PE ratio.
PEG (NY)2.67
PEG (5Y)1.38
EPS Next 2Y7.68%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
WKL has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of WKL has falen by -21.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
WKL's Dividend Yield is comparable with the industry average which is at 2.47.
WKL's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of WKL is nicely growing with an annual growth rate of 16.08%!
Dividend Growth(5Y)16.08%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
WKL pays out 48.26% 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.
DP48.26%
EPS Next 2Y7.68%
EPS Next 3Y8.65%
AMS:WKL (12/31/2025, 7:00:00 PM)
88.34
-0.84 (-0.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners69.04%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap20.54B
Revenue(TTM)6.08B
Net Income(TTM)1.12B
Analysts77.78
Price Target146.7 (66.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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)-0.47%
PT rev (3m)-11.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.33 | ||
| P/S | 3.38 | ||
| P/FCF | 14.8 | ||
| P/OCF | 12.07 | ||
| P/B | 23.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.92 |
EPS(TTM)5.31
EY6.01%
EPS(NY)5.76
Fwd EY6.52%
FCF(TTM)5.97
FCFY6.76%
OCF(TTM)7.32
OCFY8.29%
SpS26.14
BVpS3.81
TBVpS-25.28
PEG (NY)2.67
PEG (5Y)1.38
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 | 2.52 |
F-Score5
WACC6.55%
ROIC/WACC2.78
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 Y6.22%
EPS Next 2Y7.68%
EPS Next 3Y8.65%
EPS Next 5Y9.66%
Revenue 1Y (TTM)5.69%
Revenue growth 3Y7.43%
Revenue growth 5Y5.11%
Sales Q2Q%5.57%
Revenue Next Year3.79%
Revenue Next 2Y3.56%
Revenue Next 3Y4.41%
Revenue Next 5Y5.62%
EBIT growth 1Y11.32%
EBIT growth 3Y10.6%
EBIT growth 5Y8.78%
EBIT Next Year36.74%
EBIT Next 3Y15.47%
EBIT Next 5Y11.13%
FCF growth 1Y8.1%
FCF growth 3Y8.4%
FCF growth 5Y8.87%
OCF growth 1Y6.57%
OCF growth 3Y8.58%
OCF growth 5Y8.46%
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 4 / 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 6.22% in the next year.
Is the dividend of WOLTERS KLUWER sustainable?
The dividend rating of WOLTERS KLUWER (WKL.AS) is 4 / 10 and the dividend payout ratio is 48.26%.