Wendel SE (MF) AI Stock Analysis

• Market Cap: €3.45B
• Dividend Yield: 5.92%
• Average Volume (3M): 50.14K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 1.08
• Revenue Growth: 9.86%
• EPS Growth: -118.70%
• Country: FR
• Employees: 92,426
• Sector: Conglomerates
• Sector Strength: N/A
• Industry: Asset Management
• EPS (TTM): 0.08
• Shares Outstanding: 44,512,040
• 10 Day Avg. Volume: 79,358
• 30 Day Avg. Volume: 50,142
• PEG Ratio: 0.12
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 2.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €99.33
• Price Target Upside: 25.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: €89.00 ▲(12.16% Upside)

Wendel SE's stock score reflects a strong financial foundation and attractive valuation, partially offset by negative technical indicators. The company is financially stable with strong cash flows and growth potential, but recent market momentum is weak, suggesting potential short-term volatility.

Wendel SE Business Overview & Revenue Model

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.

How the Company Makes Money

Wendel SE generates revenue primarily through capital appreciation and dividends from its portfolio of investments. The company invests in a range of sectors, and its revenue model is driven by the performance of its underlying assets. Key revenue streams include realized gains from the sale of portfolio companies, interest income, and dividends received from holdings. Additionally, Wendel SE often enters into strategic partnerships and joint ventures, which can enhance its investment capabilities and provide access to new markets. The firm also benefits from its long-term investment approach, allowing it to capitalize on market trends and operational improvements within its portfolio, thereby maximizing returns over time.

Wendel SE Financial Statement Overview

Summary

Wendel SE demonstrates strong financial performance with consistent revenue growth and robust cash flow generation. The company maintains healthy profitability margins and effectively manages leverage. However, there is room for improvement in net profit margins.

Income Statement

Wendel SE has demonstrated a solid financial performance with a consistent increase in total revenue over the years, highlighted by a notable revenue growth rate of 13.13% from 2023 to 2024. The gross profit margin is strong due to the high gross profit, suggesting effective cost management. However, the net profit margin is relatively lower, indicating potential areas for further cost optimization or enhanced efficiency. The EBIT and EBITDA margins are healthy, underscoring operational profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 2.09 for 2024, signaling a balanced approach to leveraging debt. The return on equity (ROE) has improved significantly, reaching 9.12% in 2024, indicative of enhanced profitability relative to shareholders' equity. The equity ratio of 20.85% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Wendel SE's cash flow statements show robust free cash flow growth and a strong operating cash flow to net income ratio of 5.42 for 2024, highlighting efficient cash generation from operations. The free cash flow to net income ratio stands at 4.72, indicating substantial cash flows relative to net income, which strengthens the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.27B	8.06B	7.13B	8.70B	7.50B	6.83B
Gross Profit	8.06B	8.27B	863.70M	964.20M	806.10M	480.90M
EBITDA	728.20M	1.62B	1.54B	1.58B	1.38B	1.12B
Net Income	599.85M	293.90M	142.40M	71.20M	1.05B	-264.00M
Balance Sheet
Total Assets	15.70B	15.46B	15.05B	14.38B	14.18B	13.21B
Cash, Cash Equivalents and Short-Term Investments	2.61B	3.51B	2.42B	3.33B	2.55B	3.21B
Total Debt	6.63B	6.75B	6.11B	6.06B	5.93B	6.54B
Total Liabilities	11.02B	10.29B	10.22B	9.74B	9.99B	9.92B
Stockholders Equity	3.07B	3.22B	2.68B	2.79B	2.60B	2.00B
Cash Flow
Free Cash Flow	1.21B	1.39B	1.18B	1.09B	1.02B	966.70M
Operating Cash Flow	1.38B	1.59B	1.41B	1.36B	1.27B	1.19B
Investing Cash Flow	-1.73B	135.70M	-1.70B	326.00M	-998.10M	-220.50M
Financing Cash Flow	-1.38B	-583.80M	-189.60M	-672.50M	-953.80M	-668.40M

Wendel SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MF, the sentiment is Negative. The current price of 79.35 is below the 20-day moving average (MA) of 80.64, below the 50-day MA of 83.70, and below the 200-day MA of 86.41, indicating a bearish trend. The MACD of -1.14 indicates Negative momentum. The RSI at 36.27 is Neutral, neither overbought nor oversold. The STOCH value of 14.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MF.

Wendel SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANTIN	77 Outperform	2.08B	16.76	26.43%	6.12%	9.60%	5.96%
PEUG	75 Outperform	1.84B	46.17	―	4.39%	-48.21%	-64.53%
MF	66 Neutral	€3.45B	11.68	-2.85%	5.92%	9.86%	-118.70%
TKO	61 Neutral	3.24B	17.82	―	4.27%	12.44%	12.15%
RF	49 Neutral	3.87B	-6.17	-5.92%	4.84%	11.76%	-735.88%
Sector *	56 Neutral	€8.06B	33.92	7.92%	2.36%	9.86%	-118.70%