WOLTERS KLUWER (WKL.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:WKL - NL0000395903 - Common Stock
83.3 EUR
-0.78 (-0.93%)
Overall WKL gets a fundamental rating of 5 out of 10. We evaluated WKL against 34 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.
- WKL had a positive operating cash flow in the past year.
- Each year in the past 5 years WKL has been profitable.
- In the past 5 years WKL always reported a positive cash flow from operatings.
1.2 Ratios
- WKL has a better Return On Assets (11.54%) than 94.12% 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 88.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WKL is significantly above the industry average of 10.77%.
| 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's Profit Margin of 18.48% is amongst the best of the industry. WKL outperforms 88.24% of its industry peers.
- WKL's Profit Margin has improved in the last couple of years.
- WKL's Operating Margin of 25.41% is amongst the best of the industry. WKL outperforms 88.24% of its industry peers.
- In the last couple of years the Operating Margin of WKL has grown nicely.
- The Gross Margin of WKL (72.93%) is better than 70.59% 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.
- WKL has less shares outstanding than it did 1 year ago.
- 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
- WKL has an Altman-Z score of 2.44. 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 has a Altman-Z score of 2.44. This is in the lower half of the industry: WKL underperforms 64.71% of its industry peers.
- WKL has a debt to FCF ratio of 3.75. This is a good value and a sign of high solvency as WKL would need 3.75 years to pay back of 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 73.53% 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.
- With a Debt to Equity ratio value of 5.81, WKL is not doing good in the industry: 85.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 2.44 |
ROIC/WACC2.8
WACC6.5%
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.
- WKL has a Current ratio of 0.71. This is in the lower half of the industry: WKL underperforms 70.59% 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.
- The Quick ratio of WKL (0.69) is worse than 70.59% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 12.08% on average over the past years. This is quite good.
- 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.
- The Revenue is expected to grow by 5.31% on average over the next years.
EPS Next Y6.22%
EPS Next 2Y7.68%
EPS Next 3Y8.65%
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
- WKL is valuated correctly with a Price/Earnings ratio of 15.69.
- Based on the Price/Earnings ratio, WKL is valued cheaper than 82.35% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, WKL is valued a bit cheaper.
- A Price/Forward Earnings ratio of 14.46 indicates a correct valuation of WKL.
- Based on the Price/Forward Earnings ratio, WKL is valued a bit cheaper than 64.71% of the companies in the same industry.
- WKL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WKL is on the same level as its industry peers.
- 67.65% 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 | 13.95 | ||
| EV/EBITDA | 11.35 |
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)2.52
PEG (5Y)1.3
EPS Next 2Y7.68%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.77%, WKL has a reasonable but not impressive dividend return.
- The stock price of WKL dropped by -26.99% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 2.53, WKL pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, WKL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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
- 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%
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 6.22% 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%.