Wolters Kluwer Prints a Solid 2020

Narrow-moat Wolters Kluwer finished the year off strongly, with organic revenue growth of 2% and EPS up 7% year over year. A step down from the more than 4% organic revenue growth level the company has reached over the last few years, but a very solid result given the disruption of the coronavirus pandemic over the period. Investors have come to expect a certain level of resilience from the Wolters Kluwer business model over the years, hence why the share price fell a modest 20% at the outset of the pandemic last year, and this result will do more to ballast that view. We do not expect to make any material changes to our forecasts on the back of this update and reiterate our EUR 53 fair value estimate. At these levels we do not believe the shares offer good value.