One-glance verdict
Undervalued
$188.18 our estimate vs market $91.77
Wall Street consensus: $108.60 (-42.3% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Wolters Kluwer N.V.
WTKWY · PNK · Industrials · Specialty Business Services
Current price
$91.77
52-week range
$63.22 - $134.25
Market cap
$20.41B
Balance sheet
Distressed
14.42x Strong cushion
Net debt $4.56B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 146.1% on equity, ahead of 80% of its peers.
- Risk Net debt grew 76.3% over 3 years.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
Wolters Kluwer N.V.
Wolters Kluwer provides specialized software and information to professionals in essential fields like healthcare, law, and accounting so they can do their jobs correctly and follow complex rules. The company makes most of its money from subscriptions to these services, creating a steady stream of recurring revenue (income that is predictable and likely to continue in the future) because its professional customers rely on these tools every day.
How the company got here
Wolters Kluwer's story begins in the Netherlands with publishing families in the 19th century who wanted to improve educational materials. The company as we know it today was formed in 1987 when two of these publishing houses, Wolters-Samson and Kluwer, merged to avoid a takeover. This merger created the second-largest publisher in the Netherlands and set the stage for international expansion into Europe and the United States. Over the years, Wolters Kluwer has shifted from a traditional print publisher to a global provider of digital information, software, and services for professionals.
What it actually does
Wolters Kluwer provides specialized software, information, and services to professionals in fields like healthcare, law, accounting, and finance. Think of them as a company that creates digital tools and expert resources to help these professionals make important decisions accurately and efficiently. For example, they offer software that helps accountants with tax preparation, tools for doctors to get up-to-date medical information, and systems for lawyers to manage their cases. Essentially, they provide the critical information and technology that professionals rely on to do their jobs effectively.
Health
This segment provides clinical technology and evidence-based solutions for healthcare professionals like doctors, nurses, and pharmacists. Hospitals and healthcare organizations pay for access to tools like UpToDate, a resource that gives clinicians quick access to the latest medical research and treatment recommendations. This part of the company aims to improve patient care by helping medical professionals make informed decisions. It is a significant part of Wolters Kluwer's business, focused on improving outcomes in the healthcare industry.
Tax & Accounting
The Tax & Accounting division creates software and provides information for tax, accounting, and audit professionals. Their customers are typically accounting firms and corporate finance departments who pay for software suites that help with tax compliance (following tax laws), managing workflows, and conducting audits. Products like CCH Axcess are cloud-based platforms that make these complex processes more efficient and accurate. This is a core part of Wolters Kluwer's business, serving a large number of professionals in the financial world.
Financial & Corporate Compliance
This segment offers solutions to financial institutions and corporations to help them comply with legal and regulatory obligations. For instance, a bank might use their software to ensure they are following all the rules for lending money, or a company might use their services to manage the legal requirements of doing business in different states. Customers pay for these tools to increase their efficiency and reduce the risk of non-compliance. This division helps businesses navigate the complex world of regulations.
Legal & Regulatory
The Legal & Regulatory division provides information, software, and analytics to legal and compliance professionals in law firms and corporate legal departments. They offer tools for legal research, managing legal documents, and handling corporate legal operations. For example, a lawyer might use their products to research case law or manage the contracts for their company. This segment helps legal professionals work more productively and make well-informed decisions.
Corporate Performance & ESG
This is a newer and fast-growing part of the company that provides software to help organizations manage their financial and operational performance, as well as their Environmental, Social, and Governance (ESG) reporting. Companies use these tools to plan their finances, manage risks, and report on their sustainability efforts to investors and the public. This segment brings together several of Wolters Kluwer's software businesses to meet the increasing demand from companies to track and disclose their ESG performance.
What management is betting on now
Wolters Kluwer's current strategy is heavily focused on growth through artificial intelligence (AI) and developing what they call "expert solutions." They are investing more in product development to embed AI into their software and services, which helps professionals work faster and make better decisions. The company is also concentrating on providing integrated solutions, especially in high-growth areas like ESG (Environmental, Social, and Governance) to meet increasing customer demand. Their goal is to provide indispensable, AI-powered tools that become a core part of their professional customers' daily work.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $188.18 vs current price $91.77
Wall Street consensus is the average analyst price target: $108.60 (-42.3% lower than our fair-value estimate).
Our most-likely fair value is $188.18 a share — about 105.1% above today's price of $91.77, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $4.6B. Interest coverage 14.4x.
Net debt
$4.56B
Interest coverage
14.42x
Wolters Kluwer N.V.'s profit covers its interest bill about 14.4 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
WTKWY
BASELINE
Wolters Kluwer N.V.
Total debt $6.24B Interest coverage 14.42x This is the baseline the peer rows are being compared against.
Total debt $3.20B Interest coverage 10.87x -25% vs WTKWY Carries about 1.3x less debt cushion than WTKWY.
Total debt $11.87B Interest coverage 10.93x -24% vs WTKWY Carries about 1.3x less debt cushion than WTKWY.
Total debt $15.75B Interest coverage 21.52x +49% vs WTKWY Carries about 1.5x more debt cushion than WTKWY.
Total debt $4.62B Interest coverage 7.86x -45% vs WTKWY Carries about 1.8x less debt cushion than WTKWY.
Total debt $1.54B Interest coverage 13.29x -8% vs WTKWY Has roughly the same debt cushion as WTKWY.
What you should know
The case for and against WTKWY
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 146.1% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 76.3% over 3 years.
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.46x
Forward P/E
12.94x
P/B
19.44x
P/S
3.34x
EV/EBITDA
12.60x
PEG ratio
2.09x
Profitability
How much profit each dollar creates
Gross margin
74.1%
Operating margin
26.9%
Net margin
21.9%
ROE
146.1%
ROA
9.8%
Health
Liquidity and balance-sheet strength
Debt / equity
5.90x
Current ratio
0.69x
Quick ratio
0.68x
Total debt
$6.24B
Total cash
$1.68B
Growth
How the business has been compounding
Revenue TTM
$6.86B
Revenue 5Y CAGR
3.9%
EPS TTM
6.82
EPS 5Y CAGR
12.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.88B
Free CF TTM
$1.53B
FCF margin
22.3%
Dividend
Shareholder payout
Yield
3.3%
Payout ratio
43.3%
Last ex-div date
2026-09-02