Wolters Kluwer N.V. (WKL) AI Stock Analysis

• Market Cap: €24.58B
• Dividend Yield: 2.69%
• Average Volume (3M): 786.37K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.76
• Revenue Growth: 5.69%
• EPS Growth: 11.26%
• Country: NL
• Employees: 21,200
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 2.70
• Shares Outstanding: 232,516,160
• 10 Day Avg. Volume: 646,064
• 30 Day Avg. Volume: 786,367
• PEG Ratio: 3.37
• Price to Book (P/B): 24.66
• Price to Sales (P/S): 6.44
• P/FCF Ratio: 28.41
• 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: €130.43
• Price Target Upside: 44.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €101.00 ▲(11.87% Upside)

Wolters Kluwer N.V. demonstrates strong financial performance with high profitability and effective cash flow management, which are significant strengths. However, bearish technical indicators suggest potential short-term challenges. The valuation appears fair, balancing growth expectations with a modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term sustainability and expansion.

Profitability Margins

High profitability margins reflect efficient cost management and strong pricing power, enhancing the company's ability to reinvest in growth opportunities.

Cash Flow Management

Robust cash flow management ensures liquidity and financial flexibility, enabling strategic investments and shareholder returns over the long term.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk during economic downturns, potentially impacting long-term financial stability.

Equity Ratio

A low equity ratio suggests reliance on debt financing, which can be risky if market conditions become volatile, affecting the company's resilience.

Market Volatility Risk

While strong financial metrics provide some buffer, high leverage exposes the company to risks in volatile markets, potentially impacting long-term growth.

Wolters Kluwer N.V. Business Overview & Revenue Model

Company Description

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally. The company operates through four segments: Health; Tax & Accounting; Governance, Risk & Compliance; and Legal & Regulatory. The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare. It provides solutions for hospitals, clinics, other healthcare providers, individual clinicians and students, nursing and medical schools and libraries, retail pharmacies, payers, and life sciences organizations. The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes. It provides solutions for accounting firms, corporate finance, tax and auditing departments, government agencies, libraries, and universities. The Governance, Risk & Compliance segment offers technology-enabled services and solutions for legal entity compliance, legal operations management, banking product compliance, and regulatory reporting. It serves legal, compliance, and risk professionals in corporations, small businesses, law firms, insurers, banks, non-bank lenders, credit unions, leasing companies, and securities firms. The Legal & Regulatory segment provides evidence-based information, actionable insights, and integrated workflow solutions that help customers to make the right decisions and streamline compliance. It enables legal and compliance professionals, and operational risk managers, as well as environmental, health, and safety managers to improve productivity and performance, mitigate risk, and solve complex problems with confidence in law firms, corporations, universities, and government agencies. Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.

How the Company Makes Money

Wolters Kluwer generates revenue primarily through subscription-based models and the sale of software products. Its key revenue streams include recurring revenue from subscriptions to its online platforms and software products, as well as one-time fees for certain software licenses and professional services. The company also earns revenue from content sales and licensing agreements. Significant partnerships with organizations in healthcare, legal, and financial sectors bolster its offerings and expand its market reach. Furthermore, investments in digital transformation and innovation play a crucial role in enhancing its service delivery and customer engagement, thereby contributing to its overall earnings.

Wolters Kluwer N.V. Financial Statement Overview

Summary

Wolters Kluwer N.V. presents a strong financial profile with consistent revenue growth, high profitability margins, and effective cash flow management. The firm's high leverage is a risk factor, but its strong return on equity and cash flow metrics suggest resilience and capability for sustainable growth.

Income Statement

Wolters Kluwer N.V. demonstrates strong revenue growth with a 5.96% increase from 2023 to 2024. The company maintains a solid gross profit margin of 72.49% and a healthy net profit margin of 18.24% for 2024. The EBIT and EBITDA margins are also robust at 24.35% and 32.62%, respectively, indicating efficient operational management and profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 2.63, showing a high level of leverage, which could pose risks in volatile market conditions. However, Wolters Kluwer N.V. maintains a return on equity of 69.82%, indicating strong profitability relative to shareholder's equity. The equity ratio is 16.27%, reflecting moderate financial stability.

Cash Flow

Wolters Kluwer N.V. exhibits a solid free cash flow growth rate of 9.75% from 2023 to 2024. The operating cash flow to net income ratio is 1.53, showcasing strong cash generation relative to net income. The free cash flow to net income ratio is 1.24, indicating efficient cash management and reinvestment potential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.08B	5.92B	5.58B	5.45B	4.77B	4.60B
Gross Profit	3.94B	4.29B	4.01B	3.73B	3.27B	3.10B
EBITDA	2.01B	1.93B	1.77B	1.78B	1.41B	1.43B
Net Income	1.12B	1.08B	1.01B	1.03B	728.00M	721.00M
Balance Sheet
Total Assets	9.73B	9.50B	9.09B	9.65B	9.18B	8.35B
Cash, Cash Equivalents and Short-Term Investments	942.00M	954.00M	1.14B	1.35B	1.00B	723.00M
Total Debt	5.23B	4.07B	3.75B	3.62B	3.13B	3.11B
Total Liabilities	8.85B	7.95B	7.34B	7.34B	6.76B	6.26B
Stockholders Equity	887.00M	1.54B	1.75B	2.31B	2.42B	2.09B
Cash Flow
Free Cash Flow	1.68B	1.34B	1.22B	1.29B	1.05B	960.00M
Operating Cash Flow	1.70B	1.65B	1.54B	1.58B	1.29B	1.20B
Investing Cash Flow	-1.47B	-652.00M	-374.00M	-299.00M	-287.00M	-564.00M
Financing Cash Flow	-51.00M	-1.09B	-1.48B	-991.00M	-451.00M	-627.00M

Wolters Kluwer N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:WKL, the sentiment is Negative. The current price of 90.28 is below the 20-day moving average (MA) of 91.83, below the 50-day MA of 102.63, and below the 200-day MA of 127.91, indicating a bearish trend. The MACD of -3.59 indicates Negative momentum. The RSI at 34.11 is Neutral, neither overbought nor oversold. The STOCH value of 39.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:WKL.

Wolters Kluwer N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KPN	67 Neutral	€15.37B	18.58	34.21%	4.45%	3.75%	0.28%
WKL	65 Neutral	€24.58B	22.36	92.62%	2.69%	5.69%	11.26%
INPST	64 Neutral	€4.95B	21.69	―	―	30.31%	0.33%
IMCD	61 Neutral	€5.14B	19.02	14.32%	2.81%	6.09%	-7.18%
LIGHT	60 Neutral	€2.57B	8.12	11.48%	7.78%	-4.73%	17.93%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RAND	55 Neutral	€5.98B	111.58	1.49%	8.91%	-3.62%	-87.74%