Wendel SE (MF) AI Stock Analysis

• Market Cap: €4.02B
• Dividend Yield: 5.11%
• Average Volume (3M): 42.86K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.99
• Revenue Growth: 13.13%
• EPS Growth: 105.81%
• Country: FR
• Employees: 92,426
• Sector: Industrials
• Sector Strength: 91
• Industry: Asset Management
• EPS (TTM): -2.22
• Shares Outstanding: 44,461,998
• 10 Day Avg. Volume: 28,347
• 30 Day Avg. Volume: 42,859
• PEG Ratio: 0.03
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €106.00
• Price Target Upside: 15.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: €97.00 ▲(5.43%Upside)

Wendel SE's stock demonstrates solid financial performance, driven by robust revenue growth and strong cash flow. The technical analysis supports a positive momentum, while the valuation indicates the stock is undervalued with a high dividend yield. These factors contribute to a favorable investment outlook.

Wendel SE Business Overview & Revenue Model

Company Description

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. The firm seeks to invest in Africa, Europe, European Developed Markets, Western Europe, particularly France, and North America (United States and Canada). It invests between €150 million ($175.46 million) and €500 million ($584.87 million) in companies. It targets majority/control/large minority investments in listed or unlisted companies. The firm seeks to take a seat on the board of directors or supervisory board and key committees of its portfolio companies. It makes balance sheet investments. Wendel was founded in 1704 and is headquartered in Paris, France with additional offices across Asia, North America, United Kingdom and Europe.

How the Company Makes Money

Wendel SE makes money by investing in and managing a diverse portfolio of companies. The firm generates revenue primarily through capital gains realized from the sale of its investments and dividends received from its portfolio companies. In addition to these core revenue streams, Wendel SE may also earn income through management fees and performance-related incentives from the companies in which it invests. The company's strategic partnerships and active involvement in the governance and strategic direction of its portfolio companies are significant factors contributing to its financial performance.

Wendel SE Financial Statement Overview

Summary

Wendel SE has demonstrated solid financial performance with consistent revenue growth and strong cash flow generation. However, the net profit margin is relatively lower, indicating room for improvement in cost management.

Income Statement

Wendel SE has demonstrated a solid financial performance with a consistent increase in total revenue over the years, highlighted by a notable revenue growth rate of 13.13% from 2023 to 2024. The gross profit margin is strong due to the high gross profit, suggesting effective cost management. However, the net profit margin is relatively lower, indicating potential areas for further cost optimization or enhanced efficiency. The EBIT and EBITDA margins are healthy, underscoring operational profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 2.09 for 2024, signaling a balanced approach to leveraging debt. The return on equity (ROE) has improved significantly, reaching 9.12% in 2024, indicative of enhanced profitability relative to shareholders' equity. The equity ratio of 20.85% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Wendel SE's cash flow statements show robust free cash flow growth and a strong operating cash flow to net income ratio of 5.42 for 2024, highlighting efficient cash generation from operations. The free cash flow to net income ratio stands at 4.72, indicating substantial cash flows relative to net income, which strengthens the company's liquidity position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.06B	7.13B	8.70B	7.50B	6.83B
Gross Profit	8.27B	863.70M	964.20M	806.10M	480.90M
EBITDA	1.62B	1.54B	1.58B	1.38B	1.12B
Net Income	293.90M	142.40M	71.20M	1.05B	-264.00M
Balance Sheet
Total Assets	15.46B	15.05B	14.38B	14.18B	13.21B
Cash, Cash Equivalents and Short-Term Investments	3.51B	2.42B	3.33B	2.55B	3.21B
Total Debt	6.75B	6.11B	6.06B	5.93B	6.54B
Total Liabilities	10.29B	10.22B	9.74B	9.99B	9.92B
Stockholders Equity	3.22B	2.68B	2.79B	2.60B	2.00B
Cash Flow
Free Cash Flow	1.39B	1.18B	1.09B	1.02B	966.70M
Operating Cash Flow	1.59B	1.41B	1.36B	1.27B	1.19B
Investing Cash Flow	135.70M	-1.70B	326.00M	-998.10M	-220.50M
Financing Cash Flow	-583.80M	-189.60M	-672.50M	-953.80M	-668.40M

Wendel SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MF, the sentiment is Positive. The current price of 92 is above the 20-day moving average (MA) of 90.30, above the 50-day MA of 87.58, and above the 200-day MA of 87.51, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 76.19 is Negative, neither overbought nor oversold. The STOCH value of 85.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:MF.

Wendel SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MF	76 Outperform	€4.02B	13.53	-13.50%	5.11%	13.13%	105.81%
Sector *	65 Neutral	$10.94B	15.63	5.27%	1.90%	3.14%	-27.13%
0HZC	―	€4.35B	―	-5.60%	4.30%	―	―
0HV8	―	€1.91B	13.07	2.80%	4.24%	―	―
0I0P	―	€567.53M	28.34	2.74%	0.76%	―	―
7TI	―	€3.54B	22.76	4.85%	3.85%	―	―
8ZU	―	€2.11B	15.92	26.49%	6.20%	―	―