Wendel (ENXTPA:MF) - Share price, News & Analysis

MF fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	5/6

MF Stock Overview

Wendel is a private equity firm specializing in equity financing in middle markets and later stages through leveraged buy-out and transactions and acquisitions.

Rewards

Price-To-Earnings ratio (3.5x) is below the French market (15.2x)

Became profitable this year

Pays a reliable dividend of 3.68%

Risk Analysis

Earnings are forecast to decline by an average of 42.1% per year for the next 3 years

Has a high level of debt

Wendel Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wendel
Historical stock prices
Current Share Price	€81.60
52 Week High	€127.50
52 Week Low	€75.30
Beta	1.37
1 Month Change	-14.56%
3 Month Change	-10.77%
1 Year Change	-29.35%
3 Year Change	-31.94%
5 Year Change	-37.04%
Change since IPO	719.34%

Shareholder Returns

	MF	FR Diversified Financial	FR Market
7D	2.8%	2.1%	3.6%
1Y	-29.4%	-19.7%	-11.3%

Return vs Industry: MF underperformed the French Diversified Financial industry which returned -19.7% over the past year.

Return vs Market: MF underperformed the French Market which returned -11.3% over the past year.

Price Volatility

Is MF's price volatile compared to industry and market?
MF volatility
MF Average Weekly Movement	5.2%
Diversified Financial Industry Average Movement	4.9%
Market Average Movement	5.0%
10% most volatile stocks in FR Market	9.1%
10% least volatile stocks in FR Market	2.9%

Stable Share Price: MF is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MF's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1704	90,266	André François-Poncet	https://www.wendelgroup.com/en/

Wendel is a private equity firm specializing in equity financing in middle markets and later stages through leveraged buy-out and transactions and acquisitions. It invests in both listed and non-listed companies. The firm typically invests in technology services and software, business services, healthcare and industrial technology.

Wendel Fundamentals Summary

How do Wendel's earnings and revenue compare to its market cap?
MF fundamental statistics
Market Cap	€3.56b
Earnings (TTM)	€1.01b
Revenue (TTM)	€7.50b

3.5x

P/E Ratio

0.5x

P/S Ratio

Is MF overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MF income statement (TTM)
Revenue	€7.50b
Cost of Revenue	€6.71b
Gross Profit	€795.20m
Other Expenses	-€214.00m
Earnings	€1.01b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 03, 2022

Earnings per share (EPS)	23.13
Gross Margin	10.60%
Net Profit Margin	13.45%
Debt/Equity Ratio	130.3%

How did MF perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

13%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MF?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MF. This is calculated by dividing MF's market cap by their current preferred multiple.
What is MF's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€3.56b

MF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	7.3x
PEG Ratio	-0.08x

Price to Earnings Ratio vs Peers

How does MF's PE Ratio compare to its peers?

MF PE Ratio vs Peers

The above table shows the PE ratio for MF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19.9x

Forward PE

Price-To-Earnings vs Peers: MF is good value based on its Price-To-Earnings Ratio (3.5x) compared to the peer average (19.9x).

Price to Earnings Ratio vs Industry

How does MF's PE Ratio compare vs other companies in the Diversified Financial Industry?

Price-To-Earnings vs Industry: MF is good value based on its Price-To-Earnings Ratio (3.5x) compared to the French Diversified Financial industry average (6.9x)

Price to Earnings Ratio vs Fair Ratio

What is MF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.5x
Fair PE Ratio	7.2x

Price-To-Earnings vs Fair Ratio: MF is good value based on its Price-To-Earnings Ratio (3.5x) compared to the estimated Fair Price-To-Earnings Ratio (7.2x).

Share Price vs Fair Value

What is the Fair Price of MF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MF (€81.6) is trading above our estimate of fair value (€31.77)

Significantly Below Fair Value: MF is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: MF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Wendel forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-42.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MF's earnings are forecast to decline over the next 3 years (-42.1% per year).

Earnings vs Market: MF's earnings are forecast to decline over the next 3 years (-42.1% per year).

High Growth Earnings: MF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MF's revenue (3.5% per year) is forecast to grow slower than the French market (5.9% per year).

High Growth Revenue: MF's revenue (3.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MF's Return on Equity is forecast to be low in 3 years time (15.7%).

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Past Performance

How has Wendel performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

55.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MF has high quality earnings.

Growing Profit Margin: MF became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: MF has become profitable over the past 5 years, growing earnings by 55.5% per year.

Accelerating Growth: MF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Diversified Financial industry (15.2%).

Return on Equity

High ROE: Whilst MF's Return on Equity (31.96%) is high, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Wendel's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MF's short term assets (€6.0B) exceed its short term liabilities (€3.3B).

Long Term Liabilities: MF's short term assets (€6.0B) do not cover its long term liabilities (€6.7B).

Debt to Equity History and Analysis

Debt Level: MF's net debt to equity ratio (69.6%) is considered high.

Reducing Debt: MF's debt to equity ratio has reduced from 269.2% to 130.3% over the past 5 years.

Debt Coverage: MF's debt is well covered by operating cash flow (26.1%).

Interest Coverage: MF's interest payments on its debt are well covered by EBIT (5.2x coverage).

Balance Sheet

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Dividend

What is Wendel current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MF's dividend (3.68%) is higher than the bottom 25% of dividend payers in the French market (1.8%).

High Dividend: MF's dividend (3.68%) is low compared to the top 25% of dividend payers in the French market (5.42%).

Stability and Growth of Payments

Stable Dividend: MF's dividends per share have been stable in the past 10 years.

Growing Dividend: MF's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13%), MF's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.1%), MF's dividend payments are thoroughly covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure

CEO

André François-Poncet (62 yo)

4.42yrs

Tenure

€5,253,357

Compensation

Mr. André François-Poncet is the Vice Chairman of the Board of Bureau Veritas S.A. since January 2018. Mr. François-Poncet served as a Partner of CIAM investment company since September 2016 until November...

CEO Compensation Analysis

Compensation vs Market: André's total compensation ($USD5.54M) is above average for companies of similar size in the French market ($USD1.91M).

Compensation vs Earnings: André's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: MF's management team is seasoned and experienced (7 years average tenure).

Board Members

Experienced Board: MF's board of directors are considered experienced (7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31