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

• Market Cap: €32.87B
• Dividend Yield: 1.85%
• Average Volume (3M): 538.75K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.72
• Revenue Growth: 5.95%
• EPS Growth: 10.49%
• Country: NL
• Employees: 21,200
• Sector: Financial
• Sector Strength: 79
• Industry: Specialty Business Services
• EPS (TTM): 2.61
• Shares Outstanding: 238,516,160
• 10 Day Avg. Volume: 693,008
• 30 Day Avg. Volume: 538,745
• PEG Ratio: 0.55
• Price to Book (P/B): 10.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.35
• 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: €168.69
• Price Target Upside: 19.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: €169.00 ▲(19.56%Upside)

Wolters Kluwer N.V. demonstrates strong financial performance characterized by profitability and effective cash management. However, technical analysis presents mixed signals, and the valuation suggests overvaluation, impacting the overall score.

Wolters Kluwer N.V. Business Overview & Revenue Model

Company Description

Wolters Kluwer N.V. is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance, and legal sectors. The company provides software solutions, professional information, and services that help professionals make critical decisions effectively and efficiently. With a history dating back to over 180 years, Wolters Kluwer operates through four main divisions: Health, Tax & Accounting, Governance, Risk & Compliance, and Legal & Regulatory.

How the Company Makes Money

Wolters Kluwer generates revenue primarily through the sale of software, online subscriptions, and print publications. Its revenue streams are diversified across its four main divisions. The Health division offers clinical decision support, medical research, and medical software solutions. The Tax & Accounting division provides software solutions and information for tax, accounting, and audit professionals. The Governance, Risk & Compliance division offers risk management, regulatory compliance, and financial services solutions, while the Legal & Regulatory division provides legal information, software, and services. The company leverages significant partnerships with professional organizations and institutions to enhance its product offerings and expand its market reach. Recurring revenue from subscriptions and software licenses forms a substantial part of its income, ensuring stable and predictable revenue streams.

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. Despite high leverage, the company shows resilience with strong return on equity and cash flow metrics.

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

Wolters Kluwer N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 141.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 141.35 is below the 20-day moving average (MA) of 148.67, below the 50-day MA of 152.65, and below the 200-day MA of 155.78, indicating a bearish trend. The MACD of -3.82 indicates Positive momentum. The RSI at 27.92 is Positive, neither overbought nor oversold. The STOCH value of 14.73 is Positive, 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
ABN	77 Outperform	€19.11B	8.30	10.26%	10.46%	-4.58%	-16.15%
NN	73 Outperform	€14.40B	10.00	7.69%	6.71%	-5.38%	38.01%
WKL	68 Neutral	€32.87B	30.87	65.51%	1.85%	5.95%	10.49%
Sector *	67 Neutral	$16.51B	11.23	9.71%	3.96%	11.61%	-10.70%
AGN	61 Neutral	€9.21B	14.10	9.26%	5.58%	-5.08%	―
RAND	61 Neutral	€6.75B	62.46	2.86%	4.34%	-4.05%	-80.51%