Wolters Kluwer N.V.
Wolters Kluwer N.V. Fundamental Analysis
Wolters Kluwer N.V. (WTKWY) shows strong financial fundamentals with a PE ratio of 13.74, profit margin of 18.48%, and ROE of 92.35%. The company generates $5.9B in annual revenue with moderate year-over-year growth of 5.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WTKWY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWTKWY demonstrates superior asset utilization.
Valuation Score
ModerateWTKWY shows balanced valuation metrics.
Growth Score
ExcellentWTKWY delivers strong and consistent growth momentum.
Financial Health Score
WeakWTKWY carries high financial risk with limited liquidity.
Profitability Score
ExcellentWTKWY achieves industry-leading margins.
Key Financial Metrics
Is WTKWY Expensive or Cheap?
P/E Ratio
WTKWY trades at 13.74 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WTKWY's PEG of 2.52 indicates potential overvaluation.
Price to Book
The market values Wolters Kluwer N.V. at 17.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.03 times EBITDA. This is generally considered low.
How Well Does WTKWY Make Money?
Net Profit Margin
For every $100 in sales, Wolters Kluwer N.V. keeps $18.48 as profit after all expenses.
Operating Margin
Core operations generate 24.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $92.35 in profit for every $100 of shareholder equity.
ROA
Wolters Kluwer N.V. generates $11.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wolters Kluwer N.V. generates strong operating cash flow of $1.64B, reflecting robust business health.
Free Cash Flow
Wolters Kluwer N.V. generates strong free cash flow of $1.34B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.93 in free cash annually.
FCF Yield
WTKWY converts 9.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
17.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.92
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How WTKWY Stacks Against Its Sector Peers
| Metric | WTKWY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.74 | 26.89 | Better (Cheaper) |
| ROE | 92.35% | 1304.00% | Weak |
| Net Margin | 18.48% | -29196.00% (disorted) | Strong |
| Debt/Equity | 5.87 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.71 | 10.90 | Weak Liquidity |
| ROA | 11.54% | -1543746.00% (disorted) | Strong |
WTKWY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wolters Kluwer N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.99%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
83.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
70.82%
Industry Style: Cyclical, Value, Infrastructure
High Growth