Success through trust and market entry barriers (Photo: Freepik, Bralnina)
In Germany, only companies from Germany and the USA are often discussed, although there are excellent companies and investment opportunities also in neighboring European countries and in other regions of the world. In this article it should be the quality company Wolters Kluwer go, which meets the greatest quality standards.
Focus on regulated industries makes Wolters Kluwer a star
Since the foundation was founded in 1987, Wolters Kluwer has developed into regulated industries such as law, taxes, finances, health and compliance as the market leader in the field of specialist information and software solutions. However, the company’s history goes back to the 19th century, because Wolters Kluwer emerged from a merger by Wolters Samsom and Kluwer. Therefore, the company is already represented in 40 countries today and has customers in more than 180 countries around the world.
Nancy McKinStry has headed the company since 2003. It has contributed significantly to the focus of the focus on digital and software -based solutions. Another milestone could be laid, because the digital alignment ensures sustainable growth and long -term profitability.
Financial strength, stock returns and dividend policy
Investors love companies that like healthy financial legs, and are also growing annual growth in times of crisis, steadily increasing the dividend and buying shares back. Wolters Kluwer is characterized by an impressive dividend history from now. In the past 6 years alone, the dividend has been increased by at least 15 percent annually. In 2017, the dividend was still 0.85 euros per share, today it is already 2.08 euros per share. The distribution rate is 47.8 percent.
At the same time, Wolters Kluwer carries out extensive stock returns, so that more than 20 percent of the shares have been bought back in the past 10 years. Finally, a share buyback program of one million euros was announced. This corresponds to 2.7 percent of market capitalization.
With a free-cash flow conversion of well over 100 percent and steadily growing profits and cash flows, even in weak business years, the software specialist underpins its strength. The gross margin is 72.2 percent and the net margin was expanded from 11.4 percent (2016) to 18 percent (2024). The return on the capital is a breathtaking 24.3 percent.
Success through trust and market entry barriers
These fundamentally strong numbers indicate a moat. Due to the highly specialized and regulated markets in which specialist knowledge and precision are required, Wolters Kluwer has developed long -term customer relationships and trust. For the second time in a row, Newsweek Wolters Kluwer gave second place as the most trustworthy company in the world in the “Business & Professional Services” category.
In addition, customers appreciate the striving for innovation, which aims to improve the productivity of customers and at the same time generate recurring income.
A share for Buy and Hold
With the strong market position, its dissipated capital allocation and consistent orientation towards innovation, Wolters Kluwer is a prime example of a quality company that value for shareholders in the long term. The combination of dividend, stock returns, recurring income and high customer loyalty as well as increasing margins position Wolters Kluwer as an attractive, long -term investment and offers stability even in uncertain times.
Wolters Kluwer: Quality has its price
Wolters Kluwer is a prime game for “Quality has its price” (see also Course-profit ratio). Due to the outstanding development, the evaluation has gradually increased. A KGV of 14 was paid 10 years ago, while the share is now traded into a KGV of 30. The assessment from the cash flow perspective also results in the same picture. The KCV is currently 27.
After all, investors can with one dividend of 1.5 percent, which is continuously increased. Due to the current rating, Wolters Kluwer offers itself either as a watchlist candidate or as a savings plan share. However, the historical course shows hardly any corrections, which is why interested investors should use small reset as an introduction.
Disclaimer:
No investment advice. No call to buy or sell securities.