WOLTERS KLUWER (WKL.AS)
NL0000395903 - Common Stock
Taking everything into account, WKL scores 5 out of 10 in our fundamental rating. WKL was compared to 30 industry peers in the Professional Services industry. While WKL has a great profitability rating, there are some minor concerns on its financial health. WKL is quite expensive at the moment. 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.
Each year in the past 5 years WKL has been profitable.
WKL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WKL (11.07%) is better than 82.14% of its industry peers.
The Return On Equity of WKL (57.58%) is better than 92.86% of its industry peers.
WKL's Return On Invested Capital of 19.12% is amongst the best of the industry. WKL outperforms 82.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WKL is above the industry average of 12.20%.
The last Return On Invested Capital (19.12%) for WKL is above the 3 year average (17.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 57.58% | ||
| ROIC | 19.12% |
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
WKL has a better Profit Margin (18.03%) than 82.14% of its industry peers.
WKL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.82%, WKL belongs to the top of the industry, outperforming 85.71% 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 71.78% is fine compared to the rest of the industry. WKL outperforms 67.86% of its industry peers.
WKL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.82% | ||
| PM (TTM) | 18.03% | ||
| GM | 71.78% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WKL is creating value.
WKL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WKL has less shares outstanding
WKL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.11 indicates that WKL is not in any danger for bankruptcy at the moment.
WKL's Altman-Z score of 4.11 is amongst the best of the industry. WKL outperforms 82.14% of its industry peers.
WKL has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as WKL would need 3.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.07, WKL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 1.88 is on the high side and indicates that WKL has dependencies on debt financing.
The Debt to Equity ratio of WKL (1.88) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | 3.07 | ||
| Altman-Z | 4.11 |
ROIC/WACC2.83
WACC6.75%
2.3 Liquidity
WKL has a Current Ratio of 0.73. 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 Current ratio, with a value of 0.73, WKL is doing worse than 82.14% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that WKL may have some problems paying its short term obligations.
WKL has a Quick ratio of 0.70. This is in the lower half of the industry: WKL underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
WKL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.90%, 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 13.18% on average per year.
Looking at the last year, WKL shows a small growth in Revenue. The Revenue has grown by 2.40% in the last year.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)9.9%
EPS 3Y13.28%
EPS 5Y13.18%
EPS growth Q2Q13.33%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y6.65%
Revenue growth 5Y5.57%
Revenue growth Q2Q0.21%
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 9.81% yearly.
Based on estimates for the next years, WKL will show a small growth in Revenue. The Revenue will grow by 5.96% on average per year.
EPS Next Y7.64%
EPS Next 2Y8.92%
EPS Next 3Y9.81%
EPS Next 5YN/A
Revenue Next Year5.87%
Revenue Next 2Y5.88%
Revenue Next 3Y5.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 30.73, which means the current valuation is very expensive for WKL.
WKL's Price/Earnings ratio is a bit more expensive when compared to the industry. WKL is more expensive than 71.43% of the companies in the same industry.
WKL is valuated rather expensively when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.54, WKL can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WKL is valued a bit more expensive than the industry average as 78.57% of the companies are valued more cheaply.
WKL is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.73 | ||
| Fwd PE | 28.54 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than WKL, based on the Enterprise Value to EBITDA ratio.
60.71% of the companies in the same industry are cheaper than WKL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.54 | ||
| EV/EBITDA | 20.54 |
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)4.02
PEG (5Y)2.33
EPS Next 2Y8.92%
EPS Next 3Y9.81%
5. Dividend
5.1 Amount
WKL has a Yearly Dividend Yield of 1.47%.
WKL's Dividend Yield is comparable with the industry average which is at 2.64.
WKL's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of WKL is nicely growing with an annual growth rate of 13.74%!
Dividend Growth(5Y)13.74%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
WKL pays out 46.38% of its income as dividend. 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.
DP46.38%
EPS Next 2Y8.92%
EPS Next 3Y9.81%
WOLTERS KLUWER
AMS:WKL (4/25/2024, 5:35:15 PM)
139.8
-1.75 (-1.24%)
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 Cap33.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)
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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)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 30.73 | ||
| Fwd PE | 28.54 | ||
| 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)4.02
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.07% | ||
| ROE | 57.58% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.82% | ||
| PM (TTM) | 18.03% | ||
| GM | 71.78% | ||
| 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.88 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.7 | ||
| 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)
Growth
EPS 1Y (TTM)9.9%
EPS 3Y13.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.4%
Revenue growth 3Y6.65%
Revenue growth 5Y
Revenue growth 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