(MF) Wendel - Ratings and Ratios

Wendel is a French private equity firm with a focus on middle-market and later-stage equity financing through leveraged buy-outs, acquisitions, and transactions. Established in 1704, the firm is one of the oldest in its sector and has evolved into a global investor with offices across Asia, North America, the UK, and Europe. Wendel invests in both listed and unlisted companies, targeting majority or large minority stakes. Its portfolio spans sectors such as B2B services, education technology, energy transition, technology services, software, business services, healthcare, and industrial technology. Geographically, Wendel prioritizes investments in Europe, particularly France and Western Europe, as well as North America (United States and Canada) and Africa. The firm typically allocates between €300 million and €800 million per transaction, emphasizing long-term value creation through active ownership. Wendel takes a hands-on approach, often securing seats on the board of directors or supervisory board and key committees of its portfolio companies to drive strategic decisions. The firms investment strategy is complemented by its balance sheet investments, reflecting its commitment to aligning with the financial and operational goals of its portfolio companies.

From a technical perspective, Wendels stock (Ticker: MF) is currently trading at €86.70, slightly above its 20-day moving average of €84.84 but below its 50-day (€90.48) and 200-day (€91.37) moving averages. This indicates that the stock is testing the lower end of its recent trading range. The Average True Range (ATR) of 2.21 suggests moderate volatility, with potential for short-term price fluctuations. Over the next three months, the stock is likely to consolidate within the €84-€92 range, with a potential upside breakout if it surpasses the €90-€92 resistance zone.

Fundamentally, Wendels market capitalization stands at €3.695 billion, with a price-to-book (P/B) ratio of 1.13, indicating that the stock is trading near its book value. The price-to-sales (P/S) ratio of 0.45 reflects undervaluation relative to its revenue. However, the return on equity (RoE) of -7.64% highlights profitability challenges, which may weigh on investor sentiment. Over the next three months, Wendels stock is expected to remain range-bound, with potential upside driven by improving fundamentals or strategic announcements. Investors should monitor the firms ability to address its profitability issues and deliver on its value-creation strategy.