WILEY (JOHN) & SONS-CLASS A (WLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WLY - US9682232064 - Common Stock
30.74 USD
-0.62 (-1.98%)
30.74 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to WLY. WLY was compared to 92 industry peers in the Media industry. WLY has an excellent profitability rating, but there are some minor concerns on its financial health. WLY may be a bit undervalued, certainly considering the very reasonable score on growth Finally WLY also has an excellent dividend rating.
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.
- WLY had positive earnings in 4 of the past 5 years.
- WLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- WLY has a better Return On Assets (4.60%) than 79.35% of its industry peers.
- The Return On Equity of WLY (15.32%) is better than 86.96% of its industry peers.
- With an excellent Return On Invested Capital value of 8.97%, WLY belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for WLY is in line with the industry average of 7.07%.
- The last Return On Invested Capital (8.97%) for WLY is above the 3 year average (6.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.6% | ||
| ROE | 15.32% | ||
| ROIC | 8.97% |
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 5.50%, WLY is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
- WLY's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 14.22%, WLY belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
- WLY's Operating Margin has improved in the last couple of years.
- The Gross Margin of WLY (73.91%) is better than 91.30% 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 | 14.22% | ||
| PM (TTM) | 5.5% | ||
| GM | 73.91% |
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
- An Altman-Z score of 2.64 indicates that WLY is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.64, WLY belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
- The Debt to FCF ratio of WLY is 5.63, which is a neutral value as it means it would take WLY, 5.63 years of fcf income to pay off all of its debts.
- WLY has a better Debt to FCF ratio (5.63) than 78.26% of its industry peers.
- A Debt/Equity ratio of 1.16 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 1.16, WLY is in line with its industry, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.24
WACC7.26%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that WLY may have some problems paying its short term obligations.
- The Current ratio of WLY (0.71) is worse than 69.57% of its industry peers.
- A Quick Ratio of 0.67 indicates that WLY may have some problems paying its short term obligations.
- The Quick ratio of WLY (0.67) is worse than 70.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- WLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.28%, which is quite good.
- WLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.75% yearly.
- The Revenue has grown by 17.22% in the past year. This is quite good.
- 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)17.28%
EPS 3Y-1.85%
EPS 5Y8.75%
EPS Q2Q%13.4%
Revenue 1Y (TTM)17.22%
Revenue growth 3Y-6.96%
Revenue growth 5Y-1.74%
Sales Q2Q%-1.14%
3.2 Future
- WLY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.04% yearly.
- The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y10.68%
EPS Next 2Y10.34%
EPS Next 3Y4.04%
EPS Next 5YN/A
Revenue Next Year-0.53%
Revenue Next 2Y0.89%
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
- A Price/Earnings ratio of 8.09 indicates a reasonable valuation of WLY.
- WLY's Price/Earnings ratio is rather cheap when compared to the industry. WLY is cheaper than 85.87% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, WLY is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.92, the valuation of WLY can be described as very cheap.
- Based on the Price/Forward Earnings ratio, WLY is valued cheaper than 80.43% of the companies in the same industry.
- WLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WLY is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, WLY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.56 | ||
| EV/EBITDA | 5.84 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of WLY may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)0.92
EPS Next 2Y10.34%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.62%, WLY is a good candidate for dividend investing.
- WLY's Dividend Yield is rather good when compared to the industry average which is at 1.22. WLY pays more dividend than 89.13% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, WLY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.69%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
- WLY pays out 66.66% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of WLY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.66%
EPS Next 2Y10.34%
EPS Next 3Y4.04%
WILEY (JOHN) & SONS-CLASS A / WLY FAQ
What is the ChartMill fundamental rating of WILEY (JOHN) & SONS-CLASS A (WLY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to WLY.
What is the valuation status for WLY stock?
ChartMill assigns a valuation rating of 8 / 10 to WILEY (JOHN) & SONS-CLASS A (WLY). This can be considered as Undervalued.
How profitable is WILEY (JOHN) & SONS-CLASS A (WLY) stock?
WILEY (JOHN) & SONS-CLASS A (WLY) has a profitability rating of 8 / 10.
What is the expected EPS growth for WILEY (JOHN) & SONS-CLASS A (WLY) stock?
The Earnings per Share (EPS) of WILEY (JOHN) & SONS-CLASS A (WLY) is expected to grow by 10.68% in the next year.
Can you provide the dividend sustainability for WLY stock?
The dividend rating of WILEY (JOHN) & SONS-CLASS A (WLY) is 8 / 10 and the dividend payout ratio is 66.66%.