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1. Company Snapshot

1.a. Company Description

Wolters Kluwer N.V. provides professional information, software solutions, and services in the Netherlands, rest of Europe, the United States, Canada, the Asia Pacific, and internationally.The company operates through four segments: Health; Tax & Accounting; Governance, Risk & Compliance; and Legal & Regulatory.The Health segment offers clinical technology and evidence-based solutions that drive effective decision-making and improved outcomes across healthcare.


It provides solutions for hospitals, clinics, other healthcare providers, individual clinicians and students, nursing and medical schools and libraries, retail pharmacies, payers, and life sciences organizations.The Tax & Accounting segment offers solutions that help tax, accounting, and audit professionals to drive productivity, navigate change, and deliver better outcomes.It provides solutions for accounting firms, corporate finance, tax and auditing departments, government agencies, libraries, and universities.


The Governance, Risk & Compliance segment offers technology-enabled services and solutions for legal entity compliance, legal operations management, banking product compliance, and regulatory reporting.It serves legal, compliance, and risk professionals in corporations, small businesses, law firms, insurers, banks, non-bank lenders, credit unions, leasing companies, and securities firms.The Legal & Regulatory segment provides evidence-based information, actionable insights, and integrated workflow solutions that help customers to make the right decisions and streamline compliance.


It enables legal and compliance professionals, and operational risk managers, as well as environmental, health, and safety managers to improve productivity and performance, mitigate risk, and solve complex problems with confidence in law firms, corporations, universities, and government agencies.Wolters Kluwer N.V. was founded in 1836 and is based in Alphen aan den Rijn, the Netherlands.

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1.b. Last Insights on WKL

Wolters Kluwer's recent performance has been impacted by fading momentum, despite its stable market position and ongoing digital transformation. The company's consensus analyst price target was revised downward from €151.08 to €147.50, reflecting modestly adjusted fair value estimates. Additionally, the stock has faced significant selling pressure, with a slide of nearly 6% for the week and a year-to-date decline of over 34%. A Zacks Rank upgrade to #2 (Buy) reflects growing optimism about earnings prospects. The company has also continued its share buyback program, repurchasing 209,553 shares for €22.2 million.

1.c. Company Highlights

2. Wolters Kluwer Reports Solid First-Half 2025 Results

Wolters Kluwer reported revenues of €3.052 billion, up 6% in constant currencies, with organic growth of 5%. Adjusted operating profit was €865 million, up 14% in constant currencies, with a margin of 28.4%, up 190 basis points. Diluted adjusted EPS rose 14% in constant currencies to €2.76, beating estimates of €2.61. Adjusted free cash flow increased by 13% in constant currencies to €505 million, and return on invested capital was 18.5%. The company's financial performance was driven by organic growth across its divisions, with Health, Tax & Accounting, Financial and Corporate Compliance, Legal & Regulatory, and Corporate Performance & ESG delivering organic growth of 4%, 6%, 4%, 6%, and 7%, respectively.

Publication Date: Jul -31

📋 Highlights
  • Organic Growth: Reported 5% organic growth across all divisions, with Tax & Accounting and Legal & Regulatory leading at 6%.
  • Profitability Expansion: Adjusted operating profit margin increased by 190 basis points to 28.4%, reflecting strong cost management.
  • Free Cash Flow: Adjusted free cash flow rose 13% to €505 million, showcasing robust cash generation capabilities.
  • Strategic Acquisitions: Completed acquisitions of RASi and Brightflag, and divested FRR to focus on core growth areas.
  • Return on Capital: Achieved an 18.5% return on invested capital, highlighting efficient use of capital for growth initiatives.

Segment Performance

The company's divisions delivered solid organic growth, with Corporate Performance & ESG leading the way with 7% growth. Recurring cloud software revenues grew 15% organically, while on-premise software revenues declined. The company made significant investments in growth initiatives, including acquisitions of RASi and Brightflag, and announced the divestment of FRR. These moves strengthen market positions and increase strategic focus.

Guidance and Outlook

The company updated its guidance for 2025, expecting organic growth to be broadly in line with the prior year's 5.8% growth. The adjusted operating profit margin is expected to be near the top end of the guidance range, and adjusted free cash flow is expected to be between EUR 1.25 billion and EUR 1.3 billion. The company assumes some conservatism in its guidance, with no expectation of deceleration in the second half of '25 but rather a bit of caution.

Valuation and Financial Metrics

At current prices, Wolters Kluwer trades at a P/E ratio of 30.19, a P/B ratio of 21.09, and a P/S ratio of 5.47. The EV/EBITDA multiple is 18.46, and the dividend yield is 1.69%. The free cash flow yield is 5.05%, and the ROIC is 18.5%. The net debt / EBITDA ratio is 1.62. According to a recent statement by the company's CFO, "We expect to continue with our M&A and share buyback programs." The company's valuation metrics suggest that the stock may be trading at a premium, but its solid financial performance and growth prospects justify its current valuation.

AI and Growth Initiatives

The company is investing in AI capabilities, including the development of Agentic AI solutions. Generative AI features have been rolled out across products, and the company has launched UpToDate Enterprise Edition, which adds data analytics and AI-enhanced search. The company's AI enhancements support retention and price increases, and it is working to quantify the benefits of AI on its business.

Acquisitions and Divestitures

The company made significant investments in growth initiatives, including acquisitions of RASi and Brightflag. These moves strengthen market positions and increase strategic focus. The divestiture of FRR is expected to record a gain when closed, with a tax impact related to that. The business is relatively small, with EUR 123 million in revenue and a margin below the group average.

3. NewsRoom

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Wolters Kluwer Named a Leader in the 2025 Gartner® Magic Quadrant™ for Financial Planning Software for the Fifth Time for Its CCH Tagetik Solution

Dec -04

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Wolters Kluwer Unveils Advanced Compounding Module to Enhance USP Compliance for Complex Pharmacy Operations

Dec -04

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Share Buyback Transaction Details November 27 – December 3, 2025

Dec -04

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Assessing Wolters Kluwer (ENXTAM:WKL) After a 44.7% YTD Share Price Decline

Dec -03

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Wolters Kluwer completes divestment of its Finance, Risk and Regulatory Reporting (FRR) unit

Dec -01

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Share Buyback Transaction Details November 20 – November 26, 2025

Nov -27

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Spanish Parliamentary Group Proposes New Crypto Tax Bill Increasing Taxes on BTC, ETH

Nov -26

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Wolters Kluwer announces TaxWise® Online powered by Expert AI: Introducing AI-driven features for tax preparers

Nov -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.24%)

6. Segments

Health

Expected Growth: 6.2%

Growing demand for healthcare analytics, increasing adoption of electronic health records, and rising need for clinical decision support systems drive Wolters Kluwer’s Health segment growth.

Tax & Accounting

Expected Growth: 6.3%

Wolter's Kluwer's tax, accounting, and audit services will benefit from increasing demand for digital solutions, stricter regulatory requirements, and growing complexity in tax and accounting practices among global corporations and local businesses.

Financial & Corporate Compliance

Expected Growth: 3.5%

Wolters Kluwer's expertise in financial services and its expanding presence in cloud-based solutions drive growth, supported by increasing demand for risk management and compliance solutions.

Corporate Performance & ESG

Expected Growth: 4.5%

Wolters Kluwer's expert solutions drive growth in legal, tax, and finance. Strong demand for digital content and analytics fuels expansion, with emerging markets contributing to growth.

Legal & Regulatory

Expected Growth: 4.5%

The Wolters Kluwer's Legal & Regulatory division's growth is driven by increasing regulatory requirements, digitalization of legal and tax industries, and rising demand for compliance and risk management services in the finance and healthcare sectors.

7. Detailed Products

CT Corporation

CT Corporation is a leading provider of legal compliance and business performance solutions, offering a range of services including entity management, compliance, and governance.

Wolters Kluwer Enablon

Wolters Kluwer Enablon is a leading provider of environmental, health, and safety (EHS) and operational risk management software, helping organizations to minimize risk and improve performance.

Wolters Kluwer CCH Tagetik

Wolters Kluwer CCH Tagetik is a leading provider of corporate performance management (CPM) software, offering a range of solutions for financial planning, budgeting, and forecasting.

Wolters Kluwer Upshot

Wolters Kluwer Upshot is a leading provider of audit management and analytics software, helping auditors and accountants to identify risks, improve audit quality, and enhance collaboration.

Wolters Kluwer Lien Solutions

Wolters Kluwer Lien Solutions is a leading provider of lien filing and search services, helping lenders and creditors to manage their lien portfolios and mitigate risk.

Wolters Kluwer Compliance Solutions

Wolters Kluwer Compliance Solutions is a leading provider of compliance and risk management solutions, helping financial institutions to manage their regulatory compliance and risk.

8. Wolters Kluwer N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Wolters Kluwer N.V. operates in a niche market, providing specialized information services and software solutions. While there are some substitutes available, they are not as comprehensive or specialized as Wolters Kluwer's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Wolters Kluwer N.V.'s customers are largely professionals and businesses, who rely on the company's specialized information services and software solutions. This reduces their bargaining power, as they have limited alternatives and are dependent on Wolters Kluwer's products.

Bargaining Power Of Suppliers

Wolters Kluwer N.V. has a diversified supplier base, and its suppliers are not concentrated, reducing their bargaining power. Additionally, the company's scale and global presence give it negotiating power over its suppliers.

Threat Of New Entrants

The specialized nature of Wolters Kluwer N.V.'s business, combined with the high barriers to entry, make it difficult for new entrants to compete effectively. The company's strong brand recognition and established customer relationships also deter new entrants.

Intensity Of Rivalry

Wolters Kluwer N.V. operates in a competitive market, with several established players. However, the company's diversified product portfolio and strong brand recognition help it to maintain its market position, reducing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.91%
Debt Cost 3.95%
Equity Weight 33.09%
Equity Cost 5.26%
WACC 4.38%
Leverage 202.17%

11. Quality Control: Wolters Kluwer N.V. passed 6 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

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Vinci

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Value: 6.3

Growth: 6.2

Quality: 4.6

Yield: 6.9

Momentum: 6.0

Volatility: 9.3

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Volvo

A-Score: 6.1/10

Value: 4.7

Growth: 6.4

Quality: 4.4

Yield: 9.4

Momentum: 5.0

Volatility: 6.7

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BAE Systems

A-Score: 5.7/10

Value: 2.4

Growth: 6.9

Quality: 4.8

Yield: 4.4

Momentum: 9.5

Volatility: 6.3

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Serco

A-Score: 5.6/10

Value: 4.6

Growth: 5.1

Quality: 3.0

Yield: 3.1

Momentum: 9.0

Volatility: 9.0

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Saint-Gobain

A-Score: 5.2/10

Value: 4.8

Growth: 5.8

Quality: 4.3

Yield: 4.4

Momentum: 6.5

Volatility: 5.7

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Wolters Kluwer

A-Score: 4.6/10

Value: 2.8

Growth: 6.4

Quality: 7.2

Yield: 3.1

Momentum: 0.5

Volatility: 7.3

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

90.28$

Current Price

90.28$

Potential

-0.00%

Expected Cash-Flows