WILEY (JOHN) & SONS-CLASS A (WLY) Stock Fundamental Analysis
NYSE:WLY - New York Stock Exchange, Inc. - US9682232064 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WLY. WLY was compared to 97 industry peers in the Media industry. WLY has an excellent profitability rating, but there are concerns on its financial health. WLY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year WLY was profitable.
In the past year WLY had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WLY reported negative net income in multiple years.
WLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WLY (1.59%) is better than 68.04% of its industry peers.
Looking at the Return On Equity, with a value of 6.03%, WLY is in the better half of the industry, outperforming 73.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.98%, WLY belongs to the top of the industry, outperforming 90.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WLY is in line with the industry average of 7.03%.
The 3 year average ROIC (8.02%) for WLY is below the current ROIC(9.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.03% | ||
| ROIC | 9.98% |
ROA(3y)-0.8%
ROA(5y)-0.09%
ROE(3y)-4.15%
ROE(5y)-1.36%
ROIC(3y)8.02%
ROIC(5y)7.52%
1.3 Margins
The Profit Margin of WLY (2.43%) is better than 63.92% of its industry peers.
The Operating Margin of WLY (13.96%) is better than 75.26% of its industry peers.
In the last couple of years the Operating Margin of WLY has remained more or less at the same level.
WLY has a better Gross Margin (73.95%) than 89.69% of its industry peers.
In the last couple of years the Gross Margin of WLY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.96% | ||
| PM (TTM) | 2.43% | ||
| GM | 73.95% |
OM growth 3Y1.59%
OM growth 5Y-1.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.07%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WLY is creating some value.
The number of shares outstanding for WLY has been reduced compared to 1 year ago.
WLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WLY has a worse debt to assets ratio.
2.2 Solvency
WLY has an Altman-Z score of 2.36. This is not the best score and indicates that WLY is in the grey zone with still only limited risk for bankruptcy at the moment.
WLY has a Altman-Z score of 2.36. This is in the better half of the industry: WLY outperforms 79.38% of its industry peers.
WLY has a debt to FCF ratio of 5.10. This is a neutral value as WLY would need 5.10 years to pay back of all of its debts.
WLY's Debt to FCF ratio of 5.10 is fine compared to the rest of the industry. WLY outperforms 74.23% of its industry peers.
A Debt/Equity ratio of 1.28 is on the high side and indicates that WLY has dependencies on debt financing.
The Debt to Equity ratio of WLY (1.28) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.24
WACC8.03%
2.3 Liquidity
WLY has a Current Ratio of 0.55. This is a bad value and indicates that WLY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.55, WLY is not doing good in the industry: 83.51% of the companies in the same industry are doing better.
WLY has a Quick Ratio of 0.55. This is a bad value and indicates that WLY is not financially healthy enough and could expect problems in meeting its short term obligations.
WLY's Quick ratio of 0.52 is on the low side compared to the rest of the industry. WLY is outperformed by 82.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
WLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.80%, which is quite good.
The Earnings Per Share has been decreasing by -1.24% on average over the past years.
WLY shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.76%.
WLY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.80% yearly.
EPS 1Y (TTM)14.8%
EPS 3Y-1.61%
EPS 5Y-1.24%
EPS Q2Q%42.37%
Revenue 1Y (TTM)-11.76%
Revenue growth 3Y-1.19%
Revenue growth 5Y0.8%
Sales Q2Q%-12.17%
3.2 Future
Based on estimates for the next years, WLY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.08% on average per year.
Based on estimates for the next years, WLY will show a small growth in Revenue. The Revenue will grow by 4.09% on average per year.
EPS Next Y28.05%
EPS Next 2Y17.08%
EPS Next 3Y14.85%
EPS Next 5Y10.08%
Revenue Next Year-9.61%
Revenue Next 2Y-4.39%
Revenue Next 3Y9.83%
Revenue Next 5Y4.09%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WLY is valuated correctly with a Price/Earnings ratio of 12.28.
Based on the Price/Earnings ratio, WLY is valued a bit cheaper than 74.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of WLY to the average of the S&P500 Index (28.29), we can say WLY is valued rather cheaply.
A Price/Forward Earnings ratio of 11.16 indicates a reasonable valuation of WLY.
Based on the Price/Forward Earnings ratio, WLY is valued a bit cheaper than 75.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. WLY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
WLY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WLY is valued a bit cheaper than the industry average as 65.98% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
WLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WLY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WLY's earnings are expected to grow with 14.85% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y17.08%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
WLY has a Yearly Dividend Yield of 3.29%. Purely for dividend investing, there may be better candidates out there.
WLY's Dividend Yield is rather good when compared to the industry average which is at 5.05. WLY pays more dividend than 80.41% of the companies in the same industry.
WLY's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
5.2 History
The dividend of WLY has a limited annual growth rate of 1.07%.
WLY has been paying a dividend for at least 10 years, so it has a reliable track record.
WLY has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.07%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
184.69% of the earnings are spent on dividend by WLY. This is not a sustainable payout ratio.
The dividend of WLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP184.69%
EPS Next 2Y17.08%
EPS Next 3Y14.85%
42.85
+0.44 (+1.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners94.65%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change-0.21%
Market Cap2.31B
Analysts80
Price Target61.2 (42.82%)
Short Float %5.11%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend1.4
Dividend Growth(5Y)1.07%
DP184.69%
Div Incr Years25
Div Non Decr Years25
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.54%
Min EPS beat(2)9.14%
Max EPS beat(2)27.95%
EPS beat(4)3
Avg EPS beat(4)17.4%
Min EPS beat(4)-15.39%
Max EPS beat(4)47.9%
EPS beat(8)7
Avg EPS beat(8)89.88%
EPS beat(12)9
Avg EPS beat(12)57.53%
EPS beat(16)13
Avg EPS beat(16)48.49%
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)2.34%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)5.73%
Revenue beat(8)6
Avg Revenue beat(8)9.22%
Revenue beat(12)6
Avg Revenue beat(12)4.72%
Revenue beat(16)9
Avg Revenue beat(16)4.16%
PT rev (1m)3.45%
PT rev (3m)3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.55%
EPS NY rev (1m)4.41%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 11.16 | ||
| P/S | 1.35 | ||
| P/FCF | 13.28 | ||
| P/OCF | 9.8 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)3.49
EY8.14%
EPS(NY)3.84
Fwd EY8.96%
FCF(TTM)3.23
FCFY7.53%
OCF(TTM)4.37
OCFY10.21%
SpS31.63
BVpS12.72
TBVpS-17.94
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 6.03% | ||
| ROCE | 12.63% | ||
| ROIC | 9.98% | ||
| ROICexc | 10.57% | ||
| ROICexgc | 148.17% | ||
| OM | 13.96% | ||
| PM (TTM) | 2.43% | ||
| GM | 73.95% | ||
| FCFM | 10.21% |
ROA(3y)-0.8%
ROA(5y)-0.09%
ROE(3y)-4.15%
ROE(5y)-1.36%
ROIC(3y)8.02%
ROIC(5y)7.52%
ROICexc(3y)8.4%
ROICexc(5y)7.93%
ROICexgc(3y)306.9%
ROICexgc(5y)N/A
ROCE(3y)10.15%
ROCE(5y)9.52%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y10.56%
ROICexc growth 5Y1.91%
OM growth 3Y1.59%
OM growth 5Y-1.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.07%
GM growth 5Y0.4%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 2.32 | ||
| Cap/Depr | 43.92% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 4.67 | ||
| Cash Conversion | 62.27% | ||
| Profit Quality | 420.61% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 2.36 |
F-Score7
WACC8.03%
ROIC/WACC1.24
Cap/Depr(3y)48.24%
Cap/Depr(5y)51.02%
Cap/Sales(3y)4.15%
Cap/Sales(5y)4.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.8%
EPS 3Y-1.61%
EPS 5Y-1.24%
EPS Q2Q%42.37%
EPS Next Y28.05%
EPS Next 2Y17.08%
EPS Next 3Y14.85%
EPS Next 5Y10.08%
Revenue 1Y (TTM)-11.76%
Revenue growth 3Y-1.19%
Revenue growth 5Y0.8%
Sales Q2Q%-12.17%
Revenue Next Year-9.61%
Revenue Next 2Y-4.39%
Revenue Next 3Y9.83%
Revenue Next 5Y4.09%
EBIT growth 1Y3.17%
EBIT growth 3Y0.38%
EBIT growth 5Y-0.3%
EBIT Next Year922.15%
EBIT Next 3Y124.05%
EBIT Next 5Y82.5%
FCF growth 1Y16.99%
FCF growth 3Y-22.84%
FCF growth 5Y-5.65%
OCF growth 1Y0.53%
OCF growth 3Y-16.75%
OCF growth 5Y-3.71%