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1. Company Snapshot

1.a. Company Description

Wendel is a private equity firm specializing in equity financing in middle markets and later stages through leveraged buy-out and transactions and acquisitions.It invests in both listed and non-listed companies.The firm typically invests in technology services and software, business services, healthcare and industrial technology.


The firm seeks to invest in Africa, Europe, European Developed Markets, Western Europe, particularly France, and North America (United States and Canada).It invests between €150 million ($175.46 million) and €500 million ($584.87 million) in companies.It targets majority/control/large minority investments in listed or unlisted companies.


The firm seeks to take a seat on the board of directors or supervisory board and key committees of its portfolio companies.It makes balance sheet investments.Wendel was founded in 1704 and is headquartered in Paris, France with additional offices across Asia, North America, United Kingdom and Europe.

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1.b. Last Insights on MF

Wendel's recent performance was impacted by a 2.4% decline in its fully diluted net asset value per share as of June 30, 2025, largely due to a dividend payment of €4.7. Although the company's Asset Management Platform continues to grow, with €45 billion in assets under management, the semi-annual interim dividend implementation may not be sufficient to offset concerns. Furthermore, Wendel's decision to issue a €500 million 8-year bond, while successful, may raise questions about its debt management strategy.

1.c. Company Highlights

2. Wendel Delivers Robust 2024 Results with Strong NAV Growth and Dividend Increase

Wendel reported a stellar financial performance in 2024, with fully diluted net asset value (NAV) per share reaching €185.7, a 16.9% year-over-year increase. The company delivered strong top-line growth, with sales rising 13% to €8.064 billion, while net income more than doubled to €294 million, excluding non-recurring events. The principal investment activity contributed €21.1 per share, driven by Bureau Veritas' 28% stock price growth, while the asset management business added €6 per share, fueled by IK Partners' outperformance and a 24% rise in assets under management (AUM). Wendel will propose a dividend of €4.7 per share, up 17.5% year-over-year, reflecting its confidence in sustained growth.

Publication Date: Mar -07

📋 Highlights
  • NAV Growth:: Wendel's fully diluted NAV per share increased by 16.9% year-over-year to EUR185.7, driven by strong performance across its portfolio.
  • Principal Investments Contribution:: The principal investment activity added EUR21.1 per share, primarily due to Bureau Veritas' 28% stock price growth and IK Partners' outperformance.
  • Asset Management Expansion:: The asset management business contributed EUR6 per share, with IK Partners raising EUR3.4 billion in 2024 and AUM growing 24% year-over-year to EUR13.8 billion.
  • Strategic Acquisitions and Disposals:: Wendel completed EUR2.3 billion in disposals and acquisitions, including Globeducate, to enhance portfolio growth and scalability.
  • Financial Performance:: The company reported EUR8.064 billion in sales, up 13% year-over-year, with net income doubling to €294 million, excluding non-recurring events.

Strong Organic Growth and Strategic Acquisitions

Bureau Veritas delivered strong organic growth of 10.2%, with profits up 7.1% and margins improving. CPI also performed well, paying a €93 million dividend, while Stahl, Scalian, and ACAMS faced challenges due to market conditions. Globeducate showed solid revenue growth, supported by M&A activity. Wendel achieved €2.3 billion in disposals and acquisitions in 2024, including Globeducate, to enhance its portfolio growth. The company's dual model, combining principal investments and asset management, continues to drive value creation.

Asset Management Expansion and ESG Progress

The asset management platform expanded significantly, with IK Partners raising €3.4 billion in 2024 and AUM growing to €13.8 billion, up 24% year-over-year. IK delivered impressive liquidity with €1.6 billion returned to LPs at a 2.8x multiple. Wendel also made progress on ESG initiatives, including a new roadmap focusing on governance, health and safety, and climate change. The company remains focused on delivering long-term value through its dual model, leveraging organic and M&A-driven growth.

Valuation and Outlook

Wendel's shares trade at a significant discount to NAV, with a price-to-NAV ratio of 0.52, reflecting market skepticism despite strong fundamentals. The company offers an attractive dividend yield of 4.26%, supported by its growing asset management cash flows. Management expressed confidence in reducing the discount through sustained performance, dividend growth, and buybacks. The integration of Monroe Capital and the expansion of IK Partners are key priorities for 2025, with analyst estimates pointing to a 4.1% revenue growth next year.

Debt and Liquidity Position

Wendel's net debt-to-EBITDA ratio stands at 2.86, with liquidity at €1.2 billion and debt of €2.4 billion, including €750 million in exchangeable bonds redeemable in Bureau Veritas shares. The average debt maturity was 4.7 years, excluding the exchangeable bonds, and debt cost was lower than cash returns in 2024. The LTV ratio was 7.2%, rising to 23% with the Monroe acquisition, but will be reduced through portfolio value creation.

Management's Vision and Strategic Focus

Laurent Mignon expressed confidence in the dual model, focusing on integrating Monroe Capital, expanding IK Partners, and seeking additional verticals. Principal investments will continue organic and M&A-driven growth, while the asset management segment is nearing significant contribution. Wendel remains focused on delivering superior returns with financial discipline, leveraging its dual model to create long-term value for shareholders.

3. NewsRoom

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What Catalysts Could Shift the Narrative as Wendel’s Outlook Evolves?

Oct -25

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WENDEL: Wendel and Committed Advisors enter exclusive negotiations to form a strategic partnership

Oct -24

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WENDEL: Q3 2025 NAV per share at €163.0; Wendel to reach a key milestone in the implementation of its business model transformation

Oct -24

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WENDEL: Management of the Exchangeable Bond maturing in 2026: successful completion of the accelerated placement of approximately 23 million Bureau Veritas shares

Sep -16

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Wendel: Management of the Exchangeable Bond maturing in 2026: accelerated placement of approximately 23 million Bureau Veritas shares

Sep -15

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Does Heineken’s Slump Signal Opportunity After Record Low US Alcohol Consumption?

Sep -09

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Enel (BIT:ENEL): Is the Current Valuation Overlooking Subtle Shifts in Performance?

Sep -09

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Telecom Italia (BIT:TIT): Fresh Valuation Perspectives After Strong Share Price Momentum

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.78%)

6. Segments

Bureau Veritas

Expected Growth: 6%

Bureau Veritas' 6% growth driven by increasing demand for sustainability and ESG services, expansion in high-growth markets like Asia, and strategic acquisitions. Wendel's support enables investments in digitalization, strengthening market position and driving organic growth. Additionally, the company's diversified portfolio and strong brand reputation contribute to its growth momentum.

Stahl

Expected Growth: 5%

Stahl's 5% growth is driven by increasing demand for sustainable coatings, expanding presence in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, particularly in waterborne and radcure technologies, has enabled it to capitalize on the trend towards eco-friendly products. Furthermore, Stahl's diversified customer base and long-term partnerships have contributed to its steady growth.

Crisis Prevention Institute

Expected Growth: 4%

Wendel's Crisis Prevention Institute, with a growth rate of 4, is driven by increasing demand for crisis management solutions, expansion into new markets, strategic partnerships, and investments in digitalization and innovation, enabling the company to capitalize on emerging trends and opportunities in the crisis prevention and management space.

Scalian

Expected Growth: 5%

Scalian's growth is driven by increasing demand for digital transformation, expansion into new geographies, and strategic acquisitions. The company's expertise in cloud, cybersecurity, and data analytics has positioned it for success in a rapidly growing market. Additionally, Wendel's backing has provided access to capital and resources, enabling Scalian to invest in innovation and talent, further fueling its growth.

Association of Certified Anti-money Laundering Specialists

Expected Growth: 3%

The Association of Certified Anti-Money Laundering Specialists' 3% growth is driven by increasing global regulatory requirements, rising financial crime, and growing demand for AML/CFT compliance. Additionally, Wendel's expertise in risk management and due diligence contributes to the growth, as financial institutions seek to strengthen their AML defenses.

7. Detailed Products

Bureau Veritas

A global leader in testing, inspection, and certification, providing services to ensure the quality, safety, and performance of products, infrastructure, and assets.

Cromology

A leading European player in the decorative paints market, offering a wide range of paints, coatings, and services.

Stahl

A leading global company in the specialty chemicals industry, providing high-performance coatings, processing chemicals, and leather chemicals.

Constantia Flexibles

A leading global supplier of flexible packaging and labels, providing innovative and sustainable solutions for the food, pharma, and cosmetics industries.

IHS

A leading global provider of critical information, analytics, and expertise, serving industries such as energy, chemicals, and automotive.

8. Wendel's Porter Forces

Forces Ranking

Threat Of Substitutes

Wendel's products are moderately substitutable, as customers have some alternatives, but they are not perfect substitutes.

Bargaining Power Of Customers

Wendel's customers have limited bargaining power due to the company's strong brand and limited alternatives.

Bargaining Power Of Suppliers

Wendel's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility to switch.

Threat Of New Entrants

The threat of new entrants is high, as the industry has low barriers to entry and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as Wendel operates in a highly competitive market with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.55%
Debt Cost 4.43%
Equity Weight 30.45%
Equity Cost 10.49%
WACC 6.27%
Leverage 228.46%

11. Quality Control: Wendel passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vontobel

A-Score: 6.5/10

Value: 6.8

Growth: 4.1

Quality: 6.4

Yield: 7.5

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Wendel

A-Score: 6.0/10

Value: 7.7

Growth: 3.9

Quality: 5.9

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Man

A-Score: 5.8/10

Value: 5.0

Growth: 5.8

Quality: 7.2

Yield: 8.1

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Peugeot

A-Score: 5.6/10

Value: 2.7

Growth: 6.2

Quality: 6.8

Yield: 5.6

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Caledonia Investments

A-Score: 5.4/10

Value: 2.5

Growth: 2.4

Quality: 7.2

Yield: 4.4

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Bure Equity

A-Score: 3.5/10

Value: 5.4

Growth: 3.0

Quality: 4.6

Yield: 0.6

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

79.5$

Current Price

79.5$

Potential

-0.00%

Expected Cash-Flows