Wolters Kluwer reported solid results in its first-quarter trading update. Organic revenue growth was 6%, which is tracking in line with FactSet consensus and our estimate for fiscal 2024. In addition, Wolters Kluwer asserted the first-quarter EBIT margin increased (the actual number was not disclosed). Fiscal 2024 guidance was confirmed. We don’t expect to make a material change to our EUR 137 fair value estimate.
The shift to focusing on expert solutions (software and information analytics) has boosted Wolters Kluwer's organic growth profile.
The company lacks scale and expert solutions in its legal and regulatory segment, leading to structurally lower margins compared with the rest of the legacy segments.
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Metric
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WKL
|
TRI
|
RELX
|
|---|---|---|---|
Price/Earnings (Normalized) | 33.29 | 44.77 | 30.12 |
Price/Book Value | 20.08 | 6.87 | 18.52 |
Price/Sales | 6.43 | 11.09 | 7.25 |
Price/Cash Flow | 24.82 | 36.65 | 25.82 |
|
Metric
|
WKL
|
TRI
|
RELX
|
|---|---|---|---|
Quick Ratio | 0.70 | 0.84 | 0.45 |
Current Ratio | 0.73 | 0.97 | 0.52 |
Interest Coverage | 49.04 | 10.51 | 8.62 |
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Metric
|
WKL
|
TRI
|
RELX
|
|---|---|---|---|
Return on Assets (Normalized) | 11.23% | 8.80% | 14.24% |
Return on Equity (Normalized) | 51.30% | 15.29% | 61.55% |
Return on Invested Capital (Normalized) | 18.66% | 11.81% | 23.47% |
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Ticker
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Name
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Morningstar Rating for Stocks
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Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
RLXXF
| RELX PLC | — | Bghvl | $80.2 Bil | |
RELX
| RELX PLC ADR | Pwlyjtdmtv | Xzq | $80.2 Bil | |
TRI
| Thomson Reuters Corp | Cxjhvxns | Vqvbg | $75.4 Bil | |
CTAS
| Cintas Corp | Ymbmrlcw | Bvxty | $70.1 Bil | |
CPRT
| Copart Inc | Rnwtcjg | Fkrb | $53.0 Bil | |
WTKWY
| Wolters Kluwer NV ADR | Qlptbsf | Ywts | $37.7 Bil | |
WOLTF
| Wolters Kluwer NV | — | Ktyt | $37.7 Bil | |
GPN
| Global Payments Inc | Kwvqxsm | Bkvht | $28.3 Bil | |
RBA
| RB Global Inc | Qxnxlbprf | Hjbwttl | $13.2 Bil | |
RTO
| Rentokil Initial PLC ADR | Fvsgjfdfn | Rfpwx | $13.1 Bil |
