Wendel SE (MF) AI Stock Analysis

• Market Cap: €3.71B
• Dividend Yield: 5.5%
• Average Volume (3M): 32.85K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.97
• Revenue Growth: 13.13%
• EPS Growth: 105.81%
• Country: FR
• Employees: 92,426
• Sector: Industrials
• Sector Strength: 92
• Industry: Asset Management
• EPS (TTM): -2.22
• Shares Outstanding: 44,461,998
• 10 Day Avg. Volume: 36,206
• 30 Day Avg. Volume: 32,852
• PEG Ratio: 0.02
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.12
• 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: €105.00
• Price Target Upside: 22.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: €100.00 ▲(16.35%Upside)

Wendel SE displays strong financial performance with healthy revenue growth and cash flow generation, supporting a stable outlook. While technical indicators show positive short-term momentum, caution is advised due to potential overbought conditions. Valuation metrics suggest the stock is fairly priced with an attractive dividend yield.

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 makes money through its investment activities by acquiring significant stakes in companies and driving their growth and profitability over the long term. The firm generates revenue primarily through capital gains realized from the sale of its investments when the companies achieve a higher valuation. Additionally, Wendel SE earns income through dividends distributed by its portfolio companies. The firm maintains strategic partnerships and leverages its expertise to optimize the operations and financial performance of its investments, which contributes to the overall earnings.

Wendel SE Financial Statement Overview

Summary

Wendel SE shows a stable financial position with consistent revenue growth of 13.13% and strong cash flow generation. The company maintains adequate profitability margins and effectively balances leverage, positioning itself well for future growth. However, improving net profit margins could further enhance financial performance.

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
7.68B	8.06B	7.13B	8.70B	7.50B	6.83B
	Gross Profit
925.50M	8.27B	863.70M	964.20M	806.10M	480.90M
	EBIT
924.70M	768.60M	867.40M	971.60M	804.80M	479.80M
	EBITDA
1.16B	1.62B	1.54B	1.58B	1.38B	1.12B
	Net Income Common Stockholders
-265.10M	293.90M	142.40M	71.20M	1.05B	-264.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.99B	3.51B	2.42B	3.33B	2.55B	3.21B
	Total Assets
16.31B	15.46B	15.05B	14.38B	14.18B	13.21B
	Total Debt
8.94B	6.75B	6.11B	6.06B	5.93B	6.54B
	Net Debt
6.38B	3.32B	3.71B	2.80B	3.70B	3.64B
	Total Liabilities
13.01B	10.29B	10.22B	9.74B	9.99B	9.92B
	Stockholders Equity
2.26B	3.22B	2.68B	2.79B	2.60B	2.00B
Cash Flow		Free Cash Flow
1.20B	1.39B	1.18B	1.09B	1.02B	966.70M
	Operating Cash Flow
1.39B	1.59B	1.41B	1.36B	1.27B	1.19B
	Investing Cash Flow
747.30M	135.70M	-1.70B	326.00M	-998.10M	-220.50M
	Financing Cash Flow
-895.50M	-583.80M	-189.60M	-672.50M	-953.80M	-668.40M

Wendel SE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 85.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MF, the sentiment is Neutral. The current price of 85.95 is above the 20-day moving average (MA) of 85.28, above the 50-day MA of 83.35, and below the 200-day MA of 87.09, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 36.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:MF.

Wendel SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MF	74 Outperform	€3.71B	12.47	-13.50%	5.50%	13.13%	105.81%
Sector *	65 Neutral	$4.44B	12.22	5.28%	248.14%	4.08%	-12.12%
0HZC		€4.33B	―	-5.60%	4.33%	―	―
0HV8		€1.84B	12.49	2.80%	4.41%	―	―
0I0P		€530.18M	25.57	2.74%	3.99%	―	―
7TI		€3.35B	21.41	4.85%	4.21%	―	―
8ZU		€2.05B	15.25	26.49%	6.48%	―	―