Wolters Kluwer N.V. shares are closing back in on major support levels around 104.35 EUR based on daily price data, which could offer attractive entry points.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● One of the major weak points of the company is its financial situation.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● Revenue estimates are regularly revised downwards for the current and coming years.
● Over the past four months, analysts' average price target has been revised downwards significantly.
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Wolters Kluwer N.V. specializes in professional information, software solutions and digital services. Net sales break down by market as follows:
- healthcare (27%): UpToDate, Lippincott, Medi-Span, Ovid and Health Language brands;
- tax and accounting (26.3%): CCH AnswerConnect, CCH Axcess, ADDISON, CCH iFirm, A3 Software, Genya, Twinfield, CCH ProSystem fx and ATX;
- financial and corporate compliance (18.8%): CT Corporation, BizFilings, eOriginal, ComplianceOne, Lien Solutions, Expere, GainsKeeper and Wiz;
- legal and regulatory (15.7%): VitalLaw, Passport, TyMetrix 360°, Kleos, Legisway, LEX, ONE, Schulinck, Wolters Kluwer Online, Kluwer Law International and InView;
- corporate performance and ESG (12.1%): CCH Tagetik, Enablon, TeamMate and OneSumX.
Net sales are distributed geographically as follows: the Netherlands (4.2%), Europe (23.9%), North America (64.1%), Asia/Pacific (5.9%) and other (1.9%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
