WOLTERS KLUWER (WKL.AS)
NL0000395903 - Common Stock
We assign a fundamental rating of 5 out of 10 to WKL. WKL was compared to 29 industry peers in the Professional Services industry. WKL scores excellent on profitability, but there are some minor 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
In the past year WKL was profitable.
WKL had a positive operating cash flow in the past year.
WKL had positive earnings in each of the past 5 years.
Each year in the past 5 years WKL had a positive operating cash flow.
1.2 Ratios
WKL has a Return On Assets of 11.63%. This is amongst the best in the industry. WKL outperforms 89.29% of its industry peers.
WKL's Return On Equity of 67.43% is amongst the best of the industry. WKL outperforms 100.00% of its industry peers.
WKL has a Return On Invested Capital of 19.09%. This is amongst the best in the industry. WKL outperforms 89.29% 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 11.31%.
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
Looking at the Profit Margin, with a value of 18.03%, WKL belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of WKL has grown nicely.
WKL has a better Operating Margin (24.09%) than 92.86% 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 71.43% of its industry peers.
WKL's Gross Margin has been stable in the last couple of years.
| 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
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
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 4.28 indicates that WKL is not in any danger for bankruptcy at the moment.
WKL's Altman-Z score of 4.28 is amongst the best of the industry. WKL outperforms 82.14% of its industry peers.
The Debt to FCF ratio of WKL is 3.22, which is a good value as it means it would take WKL, 3.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WKL (3.22) is better than 75.00% 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 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 4.28 |
ROIC/WACC2.85
WACC6.69%
2.3 Liquidity
A Current Ratio of 0.78 indicates that WKL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.78, WKL is doing worse than 82.14% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that WKL may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, WKL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.01% 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 13.18% on average per year.
Looking at the last year, WKL shows a small growth in Revenue. The Revenue has grown by 3.08% in the last year.
The Revenue has been growing slightly by 5.57% on average over the past years.
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
WKL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.19% yearly.
Based on estimates for the next years, WKL will show a small growth in Revenue. The Revenue will grow by 6.24% on average per year.
EPS Next Y9.34%
EPS Next 2Y9.45%
EPS Next 3Y9.67%
EPS Next 5Y10.19%
Revenue Next Year6.07%
Revenue Next 2Y6.22%
Revenue Next 3Y6.21%
Revenue Next 5Y6.24%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.35, WKL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of WKL indicates a slightly more expensive valuation: WKL is more expensive than 64.29% of the companies listed in the same industry.
WKL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.87 indicates a quite expensive valuation of WKL.
Based on the Price/Forward Earnings ratio, WKL is valued a bit more expensive than the industry average as 67.86% of the companies are valued more cheaply.
WKL's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.35 | ||
| Fwd PE | 29.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of WKL indicates a slightly more expensive valuation: WKL is more expensive than 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, WKL is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.46 | ||
| EV/EBITDA | 21.59 |
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.
The excellent profitability rating of WKL may justify a higher PE ratio.
PEG (NY)3.68
PEG (5Y)2.61
EPS Next 2Y9.45%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.33%, WKL has a reasonable but not impressive dividend return.
WKL's Dividend Yield is slightly below the industry average, which is at 2.89.
Compared to the average S&P500 Dividend Yield of 2.19, WKL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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
47.83% of the earnings are spent on dividend by WKL. 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 2Y9.45%
EPS Next 3Y9.67%
WOLTERS KLUWER
AMS:WKL (12/6/2024, 7:00:00 PM)
162.8
-1.45 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap36.87B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.35 | ||
| Fwd PE | 29.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.68
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.63% | ||
| ROE | 67.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.09% | ||
| PM (TTM) | 18.03% | ||
| GM | 72.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.01%
EPS 3Y13.28%
EPS 5Y
EPS Q2Q%
EPS Next Y9.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.08%
Revenue growth 3Y6.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y