OTCPK:WTKW.Y

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.


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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: WTKW.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.3%

WTKW.Y

4.4%

US Professional Services

1.3%

US Market


1 Year Return

9.7%

WTKW.Y

16.6%

US Professional Services

14.9%

US Market

Return vs Industry: WTKW.Y underperformed the US Professional Services industry which returned 14.4% over the past year.

Return vs Market: WTKW.Y underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

WTKW.YIndustryMarket
7 Day-1.3%4.4%1.3%
30 Day0.2%5.3%4.7%
90 Day8.4%19.9%17.1%
1 Year11.4%9.7%17.5%16.6%17.3%14.9%
3 Year86.2%77.8%51.6%46.9%38.9%29.9%
5 Year158.1%137.5%87.5%77.6%71.3%52.8%

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

No news available

Valuation

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

27.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WTKW.Y ($78.63) is trading above our estimate of fair value ($73.83)

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


Price To Earnings Ratio

PE vs Industry: WTKW.Y is poor value based on its PE Ratio (27x) compared to the US Professional Services industry average (22.4x).

PE vs Market: WTKW.Y is poor value based on its PE Ratio (27x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WTKW.Y is poor value based on its PEG Ratio (9.1x)


Price to Book Ratio

PB vs Industry: WTKW.Y is overvalued based on its PB Ratio (7.5x) compared to the US Professional Services industry average (2.9x).


Next Steps

Future Growth

How is Wolters Kluwer forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTKW.Y's forecast earnings growth (3% per year) is above the savings rate (2.2%).

Earnings vs Market: WTKW.Y's earnings (3% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: WTKW.Y's revenue (3.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: WTKW.Y'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: WTKW.Y's Return on Equity is forecast to be high in 3 years time (27.3%)


Next Steps

Past Performance

How has Wolters Kluwer performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTKW.Y has high quality earnings.

Growing Profit Margin: WTKW.Y's current net profit margins (14.5%) are lower than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: WTKW.Y's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: WTKW.Y's earnings growth over the past year (2%) is below its 5-year average (10.3% per year).

Earnings vs Industry: WTKW.Y earnings growth over the past year (2%) exceeded the Professional Services industry 1.3%.


Return on Equity

High ROE: Whilst WTKW.Y's Return on Equity (28.11%) 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: WTKW.Y's short term assets (€2.5B) do not cover its short term liabilities (€3.8B).

Long Term Liabilities: WTKW.Y's short term assets (€2.5B) do not cover its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: WTKW.Y's debt to equity ratio (115.5%) is considered high.

Reducing Debt: WTKW.Y's debt to equity ratio has reduced from 115.6% to 115.5% over the past 5 years.

Debt Coverage: WTKW.Y's debt is well covered by operating cash flow (40.1%).

Interest Coverage: WTKW.Y's interest payments on its debt are well covered by EBIT (17.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WTKW.Y's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: WTKW.Y's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (4.51%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), WTKW.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WTKW.Y's dividends in 3 years are forecast to be well covered by earnings (40.5% payout ratio).


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Nancy McKinstry (61 yo)

16.92yrs

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 ($USD9.57M) is about average for companies of similar size in the US market ($USD11.35M).

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 Board16.92yrs€8.09m0.025%
€ 5.2m
Kevin Entricken
CFO & Member of the Executive Board7.25yrs€4.59m0.014%
€ 2.9m
Karen Abramson
Chief Executive Officer of Tax & Accountingno datano datano data
Margaret Geldens
Vice President of Investor Relations8.17yrsno datano data
Richard Flynn
Chief Executive Officer of Governanceno datano datano data
Caroline Wouters
Senior VP and Chief Brand & Communications Officer1.58yrsno datano data
Elizabeth Satin
Senior VP and Head of Corporate Development and Mergers & Acquisitions - North America11.58yrsno datano data
Maryjo Charbonnier
Chief Human Resources Officer5.58yrsno datano data
Andres Sadler
Chief Executive Officer of Global Business Services17yrsno datano data
Deidra Gold
Executive Vice President of North America and General Counsel of North America14.58yrsno datano data
Maarten Thompson
Senior VPno datano datano data
Punnika Kharas
Executive Vice President of Global Business Process Outsourcing (BPO) & Sourcing10.83yrsno datano data

10.8yrs

Average Tenure

59yo

Average Age

Experienced Management: WTKW.Y's management team is seasoned and experienced (10.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ann Ziegler
Independent Vice-Chairman of Supervisory Board0.33yr€95.00kno data
Frans J. G. Cremers
Independent Chairman of Supervisory Board3.33yrs€114.00kno data
Jeanette Horan
Independent Member of Supervisory Board4.33yrs€100.00kno data
Chris F. H. Vogelzang
Independent Member of Supervisory Board1.33yrs€58.00kno data
Bertrand Bodson
Independent Member of Supervisory Board1.33yrs€22.00kno data
Sophie Vandebroek
Independent Member of Supervisory Board0.33yrno datano data
Jack de Kreij
Independent Member of Supervisory Board0.33yrno datano data

1.3yrs

Average Tenure

62yo

Average Age

Experienced Board: WTKW.Y's board of directors are not considered experienced ( 1.3 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: 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.


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: WTKW.Y
  • Exchange: OTCPK
  • Founded: 1836
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €17.654b
  • Listing Market Cap: €20.884b
  • Shares outstanding: 264.04m
  • 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)SPONSORED ADRUSUSDJun 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 Analysis2020/08/03 00:01
End of Day Share Price2020/07/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.