ENXTAM:WKL

Stock Analysis Report

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Executive Summary

Wolters Kluwer N.V., together with its subsidiaries, provides professional information, software solutions, and services in Europe, North America, the Asia Pacific, and internationally. More Details


Snowflake Analysis

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has Wolters Kluwer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WKL is less volatile than 75% of Dutch stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WKL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

WKL

2.2%

NL Professional Services

-0.3%

NL Market


1 Year Return

-3.0%

WKL

9.2%

NL Professional Services

25.5%

NL Market

Return vs Industry: WKL underperformed the Dutch Professional Services industry which returned 9.2% over the past year.

Return vs Market: WKL underperformed the Dutch Market which returned 25.4% over the past year.


Shareholder returns

WKLIndustryMarket
7 Day0.6%2.2%-0.3%
30 Day-3.9%0.4%-0.08%
90 Day-2.4%2.3%7.0%
1 Year-1.1%-3.0%10.5%9.2%27.9%25.5%
3 Year67.2%58.1%35.8%24.2%19.0%7.1%
5 Year112.3%92.3%67.0%44.2%61.6%31.8%

Long-Term Price Volatility Vs. Market

How volatile is Wolters Kluwer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wolters Kluwer undervalued compared to its fair value and its price relative to the market?

6.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WKL (€66.06) is trading below our estimate of fair value (€70.39)

Significantly Below Fair Value: WKL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WKL is good value based on its PE Ratio (24.3x) compared to the XE Professional Services industry average (28.7x).

PE vs Market: WKL is good value based on its PE Ratio (24.3x) compared to the Dutch market (26.6x).


Price to Earnings Growth Ratio

PEG Ratio: WKL is poor value based on its PEG Ratio (12.4x)


Price to Book Ratio

PB vs Industry: WKL is overvalued based on its PB Ratio (8.3x) compared to the NL Professional Services industry average (2.4x).


Next Steps

Future Growth

How is Wolters Kluwer forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WKL's forecast earnings growth (2% per year) is above the savings rate (0.2%).

Earnings vs Market: WKL's earnings (2% per year) are forecast to grow slower than the Dutch market (26.7% per year).

High Growth Earnings: WKL's earnings are forecast to grow, but not significantly.

Revenue vs Market: WKL's revenue (3.2% per year) is forecast to grow slower than the Dutch market (10.2% per year).

High Growth Revenue: WKL's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WKL's Return on Equity is forecast to be high in 3 years time (29.9%)


Next Steps

Past Performance

How has Wolters Kluwer performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WKL has high quality earnings.

Growing Profit Margin: WKL's current net profit margins (15.7%) are higher than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: WKL's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: WKL's earnings growth over the past year (7.7%) is below its 5-year average (9.7% per year).

Earnings vs Industry: WKL earnings growth over the past year (7.7%) exceeded the Professional Services industry -18.6%.


Return on Equity

High ROE: Whilst WKL's Return on Equity (34.55%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Wolters Kluwer's financial position?


Financial Position Analysis

Short Term Liabilities: WKL's short term assets (€2.2B) do not cover its short term liabilities (€3.2B).

Long Term Liabilities: WKL's short term assets (€2.2B) do not cover its long term liabilities (€3.1B).


Debt to Equity History and Analysis

Debt Level: WKL's debt to equity ratio (132.2%) is considered high.

Reducing Debt: WKL's debt to equity ratio has increased from 105.1% to 132.2% over the past 5 years.

Debt Coverage: WKL's debt is well covered by operating cash flow (43.4%).

Interest Coverage: WKL's interest payments on its debt are well covered by EBIT (21.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Wolters Kluwer current dividend yield, its reliability and sustainability?

2.06%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WKL's dividend (2.06%) is higher than the bottom 25% of dividend payers in the Dutch market (1.88%).

High Dividend: WKL's dividend (2.06%) is low compared to the top 25% of dividend payers in the Dutch market (4.36%).


Stability and Growth of Payments

Stable Dividend: WKL's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (50%), WKL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WKL's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

11.4yrs

Average management tenure


CEO

Nancy McKinstry (61 yo)

17.5yrs

Tenure

€8,089,000

Compensation

Ms. Nancy McKinstry serves as the Chairman of Executive Board and Chief Executive Officer of MortgageIT Holdings, Inc. Ms. McKinstry has been the Chairman of the Executive Board and Chief Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Nancy's total compensation ($USD9.64M) is above average for companies of similar size in the Dutch market ($USD3.14M).

Compensation vs Earnings: Nancy's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nancy McKinstry
CEO & Chairman of the Executive Board17.5yrs€8.09m0.025%
€ 4.3m
Kevin Entricken
CFO & Member of the Executive Board7.83yrs€4.59m0.015%
€ 2.6m
Karen Abramson
Chief Executive Officer of Tax & Accountingno datano datano data
Margaret Geldens
Vice President of Investor Relations8.75yrsno datano data
Richard Flynn
Chief Executive Officer of Governanceno datano datano data
Caroline Wouters
Senior VP and Chief Brand & Communications Officer2.17yrsno datano data
Elizabeth Satin
Senior VP and Head of Corporate Development and Mergers & Acquisitions - North America12.17yrsno datano data
Maryjo Charbonnier
Chief Human Resources Officer6.17yrsno datano data
Andres Sadler
Chief Executive Officer of Global Business Services17.58yrsno datano data
Deidra Gold
Executive Vice President of North America and General Counsel of North America15.17yrsno datano data
Maarten Thompson
Senior VPno datano datano data
Punnika Kharas
Executive Vice President of Global Business Process Outsourcing (BPO) & Sourcing11.42yrsno datano data

11.4yrs

Average Tenure

59yo

Average Age

Experienced Management: WKL's management team is seasoned and experienced (11.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ann Ziegler
Independent Vice-Chairman of Supervisory Board0.92yr€95.00k0.00072%
€ 124.5k
Frans J. G. Cremers
Independent Chairman of Supervisory Board3.92yrs€114.00kno data
Jeanette Horan
Independent Member of Supervisory Board4.92yrs€100.00kno data
Chris F. H. Vogelzang
Independent Member of Supervisory Board1.92yrs€58.00kno data
Bertrand J. F. Bodson
Independent Member of Supervisory Board1.92yrs€22.00kno data
Sophie Vandebroek
Independent Member of Supervisory Board0.92yrno datano data
Jack de Kreij
Independent Member of Supervisory Board0.92yrno datano data

1.9yrs

Average Tenure

61yo

Average Age

Experienced Board: WKL's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: WKL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Wolters Kluwer N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wolters Kluwer N.V.
  • Ticker: WKL
  • Exchange: ENXTAM
  • Founded: 1836
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €17.287b
  • Shares outstanding: 261.68m
  • Website: https://wolterskluwer.com

Number of Employees


Location

  • Wolters Kluwer N.V.
  • Zuidpoolsingel 2
  • PO Box 1030
  • Alphen aan den Rijn
  • Zuid-Holland
  • 2400 BA
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WKLENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
WOSBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
WOLT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
0NMULSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
WKLABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
WKLWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
WTKW.YOTCPK (Pink Sheets LLC)SPON ADR EACH REP 1 ORD SHSUSUSDJun 1992
WOSDB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD SHSDEEURJun 1992

Biography

Wolters Kluwer N.V., together with its subsidiaries, provides professional information, software solutions, and services in Europe, North America, the Asia Pacific, and internationally. The company operate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 20:58
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.