WILEY (JOHN) & SONS-CLASS A (WLY) Stock Fundamental Analysis
NYSE:WLY - New York Stock Exchange, Inc. - US9682232064 - Common Stock - Currency: USD
Taking everything into account, WLY scores 5 out of 10 in our fundamental rating. WLY was compared to 97 industry peers in the Media industry. While WLY belongs to the best of the industry regarding profitability, there are concerns on its financial health. WLY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WLY had positive earnings in the past year.
In the past year WLY had a positive cash flow from operations.
WLY had positive earnings in 4 of the past 5 years.
In the past 5 years WLY always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.13%, WLY is doing good in the industry, outperforming 76.29% of the companies in the same industry.
WLY has a better Return On Equity (11.19%) than 76.29% of its industry peers.
WLY has a Return On Invested Capital of 7.78%. This is in the better half of the industry: WLY outperforms 78.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WLY is in line with the industry average of 7.56%.
The 3 year average ROIC (6.78%) for WLY is below the current ROIC(7.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 11.19% | ||
| ROIC | 7.78% |
ROA(3y)-1.22%
ROA(5y)1.01%
ROE(3y)-4.75%
ROE(5y)2.47%
ROIC(3y)6.78%
ROIC(5y)6.2%
1.3 Margins
Looking at the Profit Margin, with a value of 5.02%, WLY is in the better half of the industry, outperforming 73.20% of the companies in the same industry.
WLY's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.72%, WLY is doing good in the industry, outperforming 74.23% of the companies in the same industry.
WLY's Operating Margin has improved in the last couple of years.
WLY has a Gross Margin of 74.29%. This is amongst the best in the industry. WLY outperforms 88.66% of its industry peers.
WLY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.72% | ||
| PM (TTM) | 5.02% | ||
| GM | 74.29% |
OM growth 3Y12.06%
OM growth 5Y8.18%
PM growth 3Y-11.02%
PM growth 5YN/A
GM growth 3Y2.3%
GM growth 5Y0.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WLY is still creating some value.
Compared to 1 year ago, WLY has less shares outstanding
Compared to 5 years ago, WLY has less shares outstanding
The debt/assets ratio for WLY is higher compared to a year ago.
2.2 Solvency
WLY has an Altman-Z score of 2.29. 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 2.29. This is in the better half of the industry: WLY outperforms 72.16% of its industry peers.
WLY has a debt to FCF ratio of 5.99. This is a neutral value as WLY would need 5.99 years to pay back of all of its debts.
The Debt to FCF ratio of WLY (5.99) is better than 70.10% of its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that WLY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.05, WLY is in line with its industry, outperforming 40.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 2.29 |
ROIC/WACC1.01
WACC7.71%
2.3 Liquidity
A Current Ratio of 0.54 indicates that WLY may have some problems paying its short term obligations.
WLY's Current ratio of 0.54 is on the low side compared to the rest of the industry. WLY is outperformed by 84.54% of its industry peers.
A Quick Ratio of 0.51 indicates that WLY may have some problems paying its short term obligations.
WLY's Quick ratio of 0.51 is on the low side compared to the rest of the industry. WLY is outperformed by 86.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
WLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.36%, which is quite impressive.
Measured over the past years, WLY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.75% on average per year.
The Revenue for WLY has decreased by -10.43% in the past year. This is quite bad
Measured over the past years, WLY shows a decrease in Revenue. The Revenue has been decreasing by -1.74% on average per year.
EPS 1Y (TTM)30.36%
EPS 3Y-1.85%
EPS 5Y8.75%
EPS Q2Q%13.22%
Revenue 1Y (TTM)-10.43%
Revenue growth 3Y-6.96%
Revenue growth 5Y-1.74%
Sales Q2Q%-5.52%
3.2 Future
Based on estimates for the next years, WLY will show a small growth in Earnings Per Share. The EPS will grow by 4.04% on average per year.
The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y5.15%
EPS Next 2Y7.8%
EPS Next 3Y4.04%
EPS Next 5YN/A
Revenue Next Year1.19%
Revenue Next 2Y1.79%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 11.69, the valuation of WLY can be described as very reasonable.
Based on the Price/Earnings ratio, WLY is valued a bit cheaper than 75.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. WLY is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.12, the valuation of WLY can be described as reasonable.
WLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WLY is cheaper than 70.10% of the companies in the same industry.
WLY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLY is valued a bit cheaper than the industry average as 63.92% of the companies are valued more expensively.
WLY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WLY is cheaper than 65.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.21 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WLY does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WLY may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)1.34
EPS Next 2Y7.8%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
WLY has a Yearly Dividend Yield of 3.28%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.62, WLY pays a better dividend. On top of this WLY pays more dividend than 82.47% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, WLY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of WLY has a limited annual growth rate of 0.69%.
WLY has paid a dividend for at least 10 years, which is a reliable track record.
WLY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.69%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
WLY pays out 90.42% of its income as dividend. This is not a sustainable payout ratio.
WLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.42%
EPS Next 2Y7.8%
EPS Next 3Y4.04%
42.66
+0.71 (+1.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners94.87%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change-0.75%
Market Cap2.30B
Analysts80
Price Target61.2 (43.46%)
Short Float %6.23%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Yearly Dividend1.41
Dividend Growth(5Y)0.69%
DP90.42%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.38%
Min EPS beat(2)6.81%
Max EPS beat(2)27.95%
EPS beat(4)3
Avg EPS beat(4)7.13%
Min EPS beat(4)-15.39%
Max EPS beat(4)27.95%
EPS beat(8)7
Avg EPS beat(8)85.1%
EPS beat(12)9
Avg EPS beat(12)57.24%
EPS beat(16)13
Avg EPS beat(16)46.57%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.76%
Revenue beat(4)3
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)3.2%
Revenue beat(8)7
Avg Revenue beat(8)9.32%
Revenue beat(12)7
Avg Revenue beat(12)5.05%
Revenue beat(16)9
Avg Revenue beat(16)3.82%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 11.12 | ||
| P/S | 1.37 | ||
| P/FCF | 17.21 | ||
| P/OCF | 11.34 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.98 |
EPS(TTM)3.65
EY8.56%
EPS(NY)3.84
Fwd EY9%
FCF(TTM)2.48
FCFY5.81%
OCF(TTM)3.76
OCFY8.82%
SpS31.15
BVpS13.97
TBVpS-17.9
PEG (NY)2.27
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 11.19% | ||
| ROCE | 13.2% | ||
| ROIC | 7.78% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 213.37% | ||
| OM | 14.72% | ||
| PM (TTM) | 5.02% | ||
| GM | 74.29% | ||
| FCFM | 7.96% |
ROA(3y)-1.22%
ROA(5y)1.01%
ROE(3y)-4.75%
ROE(5y)2.47%
ROIC(3y)6.78%
ROIC(5y)6.2%
ROICexc(3y)7.11%
ROICexc(5y)6.49%
ROICexgc(3y)226.7%
ROICexgc(5y)N/A
ROCE(3y)11.52%
ROCE(5y)10.53%
ROICexcg growth 3Y-0.98%
ROICexcg growth 5Y-13.45%
ROICexc growth 3Y13.33%
ROICexc growth 5Y9.17%
OM growth 3Y12.06%
OM growth 5Y8.18%
PM growth 3Y-11.02%
PM growth 5YN/A
GM growth 3Y2.3%
GM growth 5Y0.82%
F-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 5.99 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 52.96% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 4.81 | ||
| Cash Conversion | 53.67% | ||
| Profit Quality | 158.6% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 2.29 |
F-Score7
WACC7.71%
ROIC/WACC1.01
Cap/Depr(3y)49.45%
Cap/Depr(5y)48.87%
Cap/Sales(3y)4.1%
Cap/Sales(5y)4.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.36%
EPS 3Y-1.85%
EPS 5Y8.75%
EPS Q2Q%13.22%
EPS Next Y5.15%
EPS Next 2Y7.8%
EPS Next 3Y4.04%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.43%
Revenue growth 3Y-6.96%
Revenue growth 5Y-1.74%
Sales Q2Q%-5.52%
Revenue Next Year1.19%
Revenue Next 2Y1.79%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
EBIT growth 1Y10.41%
EBIT growth 3Y4.26%
EBIT growth 5Y6.3%
EBIT Next Year78.54%
EBIT Next 3Y22.67%
EBIT Next 5YN/A
FCF growth 1Y2.84%
FCF growth 3Y-18.91%
FCF growth 5Y-7.75%
OCF growth 1Y-2.43%
OCF growth 3Y-15.78%
OCF growth 5Y-6.82%