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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MF

Wendel's recent performance was driven by significant developments. The company's agreement to sell Stahl, a global leader in specialty coatings, to Henkel for €2.1 billion, is expected to generate estimated net proceeds of €1.2 billion and an annualized IRR of over 15% since 2006. Additionally, Wendel Investment Managers' affiliates successfully raised over €11 billion in European Private Equity and US Private Credit Markets. A share buyback representing 9% of the share capital will be launched in 2026.

1.c. Company Highlights

2. Wendel's 2025 Earnings: Strong Execution on Strategy

Wendel's 2025 financial performance was marked by a stable net income from operations at EUR 753 million. The company's asset management platform, Wendel Investment Managers, had a strong year with 13% organic growth in fee-paying AUM, driven by the acquisition of Monroe Capital in March 2025. The NAV per share increased by 0.7% over the previous quarter and 1.17% including the interim dividend paid in Q4 last year. As Laurent Mignon stated, "We're executing a mandate to buy a company, and the bank will follow the rules as instructed," indicating the company's continued focus on strategic investments.

Publication Date: Mar -01

📋 Highlights
  • Portfolio Rotation Plan: Wendel aims to generate EUR 7 billion in committed cash flows by 2030 and return EUR 1.6 billion to shareholders via dividends and buybacks.
  • Acquisition Growth: Asset management AUM surged from EUR 13.8 billion to 41.2 billion in 2025, with Monroe Capital’s EUR 8.3 billion in investments and Committed Advisors acquisition pending.
  • Strategic Disposals: Sale of Stahl (EUR 1.2 billion) and IHS ($535 million) reduced leverage and generated above-15% annual returns over 20 years.
  • Organic Performance: Fee-paying AUM grew 13% organically, with NAV per share rising 0.7% QoQ and 1.17% including the interim dividend.
  • Shareholder Returns: EUR 340 million share buyback program and a EUR 5.10 dividend (up 8.5% YoY), targeting EUR 500 million in shareholder distributions in 2026.

Asset Management Growth

Wendel's asset management platform, Wendel Investment Managers, had a strong year in 2025, with AUM growing from EUR 13.8 billion to EUR 41.2 billion. The company's private equity arm, IK Partners, had a good year, raising EUR 1.3 billion and returning more capital to shareholders than invested. Monroe Capital also had a strong year, raising EUR 3.8 billion and making EUR 8.3 billion of investments.

Principal Investments Update

Wendel's principal investments area saw significant activity in 2025, with the disposal of Stahl and IHS expected to bring EUR 1.65 billion of proceeds, significantly reducing leverage. The company plans to return EUR 500 million to shareholders through dividends and share buybacks. The sale of Stahl was secured with a 20% premium above the latest NAV published in Q3 2025, generating a return above 15% per annum over the last 20 years.

Valuation and Dividend Yield

With a P/E Ratio of 7.96 and a Dividend Yield of 6.98%, Wendel's valuation appears attractive. The company's ROE is 19.06%, indicating a strong return on equity. The Net Debt / EBITDA ratio is 5.52, which is relatively high, but the company's plans to reduce leverage through asset disposals should help alleviate this concern. Analysts estimate next year's revenue growth at 11.7%, which could further support the stock's performance.

Outlook and Strategy

Wendel's management is confident in the company's ability to create value in 2026, with a focus on executing the strategy announced in December. The company aims to return more than EUR 500 million to shareholders in 2026 and is looking to invest in WPI with a 5-year time horizon, aiming for a 15% return on investment. With a strong track record of execution and a clear strategy, Wendel is well-positioned for future growth.

3. NewsRoom

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Is Wendel (ENXTPA:MF) Pricing Reflect Its Mixed Returns And Contrasting Valuation Signals

Mar -01

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WENDEL: Share buybacks and liquidity agreement suspension

Feb -27

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Wendel SE (WNDLF) (Full Year 2025) Earnings Call Highlights: Strategic Growth and Shareholder ...

Feb -26

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WENDEL: 2025 Full-Year Results

Feb -26

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IHS Towers Agrees to Be Bought by MTN Group for $6.2 Billion

Feb -17

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WENDEL: Wendel supports MTN’s offer to acquire IHS Towers pursuant to which it will receive full liquidity on its 19% stake, representing net proceeds of approximately $535m

Feb -17

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Is It Time To Reconsider Wendel (ENXTPA:MF) After Mixed Returns And Potential Stahl Sale?

Feb -15

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Henkel to acquire Stahl Group in €2.1bn deal

Feb -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.78%)

6. Segments

Bureau Veritas

Expected Growth: 6%

Bureau Veritas' 6% growth driven by increasing demand for sustainability and ESG services, expansion in high-growth markets like Asia, and strategic acquisitions. Wendel's support enables investments in digitalization, strengthening market position and driving organic growth. Additionally, the company's diversified portfolio and strong brand reputation contribute to its growth momentum.

Stahl

Expected Growth: 5%

Stahl's 5% growth is driven by increasing demand for sustainable coatings, expanding presence in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, particularly in waterborne and radcure technologies, has enabled it to capitalize on the trend towards eco-friendly products. Furthermore, Stahl's diversified customer base and long-term partnerships have contributed to its steady growth.

Crisis Prevention Institute

Expected Growth: 4%

Wendel's Crisis Prevention Institute, with a growth rate of 4, is driven by increasing demand for crisis management solutions, expansion into new markets, strategic partnerships, and investments in digitalization and innovation, enabling the company to capitalize on emerging trends and opportunities in the crisis prevention and management space.

Scalian

Expected Growth: 5%

Scalian's growth is driven by increasing demand for digital transformation, expansion into new geographies, and strategic acquisitions. The company's expertise in cloud, cybersecurity, and data analytics has positioned it for success in a rapidly growing market. Additionally, Wendel's backing has provided access to capital and resources, enabling Scalian to invest in innovation and talent, further fueling its growth.

Association of Certified Anti-money Laundering Specialists

Expected Growth: 3%

The Association of Certified Anti-Money Laundering Specialists' 3% growth is driven by increasing global regulatory requirements, rising financial crime, and growing demand for AML/CFT compliance. Additionally, Wendel's expertise in risk management and due diligence contributes to the growth, as financial institutions seek to strengthen their AML defenses.

7. Detailed Products

Bureau Veritas

A global leader in testing, inspection, and certification, providing services to ensure the quality, safety, and performance of products, infrastructure, and assets.

Cromology

A leading European player in the decorative paints market, offering a wide range of paints, coatings, and services.

Stahl

A leading global company in the specialty chemicals industry, providing high-performance coatings, processing chemicals, and leather chemicals.

Constantia Flexibles

A leading global supplier of flexible packaging and labels, providing innovative and sustainable solutions for the food, pharma, and cosmetics industries.

IHS

A leading global provider of critical information, analytics, and expertise, serving industries such as energy, chemicals, and automotive.

8. Wendel's Porter Forces

Forces Ranking

Threat Of Substitutes

Wendel's products are moderately substitutable, as customers have some alternatives, but they are not perfect substitutes.

Bargaining Power Of Customers

Wendel's customers have limited bargaining power due to the company's strong brand and limited alternatives.

Bargaining Power Of Suppliers

Wendel's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility to switch.

Threat Of New Entrants

The threat of new entrants is high, as the industry has low barriers to entry and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high, as Wendel operates in a highly competitive market with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.55%
Debt Cost 4.43%
Equity Weight 30.45%
Equity Cost 10.49%
WACC 6.27%
Leverage 228.46%

11. Quality Control: Wendel passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vontobel

A-Score: 6.3/10

Value: 6.6

Growth: 4.1

Quality: 6.5

Yield: 7.5

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Man

A-Score: 6.1/10

Value: 4.6

Growth: 5.8

Quality: 7.6

Yield: 8.1

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Wendel

A-Score: 5.8/10

Value: 7.5

Growth: 3.9

Quality: 5.9

Yield: 7.5

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Peugeot

A-Score: 5.7/10

Value: 2.7

Growth: 6.2

Quality: 7.0

Yield: 5.6

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Caledonia Investments

A-Score: 5.2/10

Value: 2.0

Growth: 2.4

Quality: 6.9

Yield: 4.4

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Bure Equity

A-Score: 3.6/10

Value: 5.6

Growth: 3.0

Quality: 3.9

Yield: 1.2

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

84.25$

Current Price

84.25$

Potential

-0.00%

Expected Cash-Flows