Wolters Kluwer N.V.
🇳🇱 WKL.AS · Amsterdam · NL0000395903
Technology
EUR 65.32 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
11.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 65.32 ÷ 5.64 = 11.6
TTM period through: 2025-12-31
Forward P/E (estimated): 11.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.6
Yield (Fwd)
3.86%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.87%
Net Debt/EBITDA (TTM)
2.1x
Latest quarter: 4.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 4.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
44.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 43.0%
Cash Flow Payout (TTM): 33.7%
FCF Coverage (TTM): 2.43x
ROE
1.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Wolters Kluwer is a high-quality global provider of mission-critical professional software and compliance services with deeply entrenched market positions. The recent market overreaction to a halved buyback program and AI disruption fears has created a textbook temporary problem, pushing the yield to an attractive 3.87% backed by massive free cash flow. Trading at €65.32 (P/E 11.6) versus historical norms of >25x, this represents a highly compelling entry point for dividend investors seeking quality tech-utility exposure with significant margin of safety.
Sector Context
Wolters Kluwer provides essential software, information, and compliance services for legal, tax, accounting, and healthcare professionals globally. While officially classified as Technology, its business model functions more like a professional utility with 83% recurring revenue, offering high visibility and stable cash flows highly suitable for dividend investing.
Temporary Opportunity Identified
Severe P/E compression driven by a halved share buyback program and market fears regarding generative AI disruption, despite core operations remaining highly profitable, growing, and actively embedding AI solutions.
📊 Strategy Analysis
- • Trading at €65.32 with a P/E of 11.6x, representing a massive compression from historical multiples of ~29x, suggesting significant undervaluation.
- • The 3.87% dividend yield is highly secure and well-covered by robust free cash flow generation, evidenced by a conservative 33.7% cash flow payout ratio.
- • The core business model boasts an 83% recurring revenue rate, providing essential, mission-critical software to professional sectors with incredibly high switching costs.
- • Consistently growing fundamentals with a 10-year revenue expansion and a 5-year EPS CAGR of 15.2%, demonstrating pricing power and operational excellence.
⚠ What to Watch
- • Market sentiment is currently cautious due to a recently halved share buyback program and broader fears regarding generative AI disruption in professional services.
- • The Debt/Equity ratio of 6.43x appears optically high, although this is primarily an accounting artifact from aggressive historical share buybacks, as Net Debt/EBITDA remains perfectly safe at 2.09x.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.