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 93 industry peers in the Media industry. There are concerns on the financial health of WLY while its profitability can be described as average. WLY is not valued too expensively and it also shows a decent growth rate. WLY also has an excellent dividend rating.
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.
In multiple years WLY reported negative net income over the last 5 years.
In the past 5 years WLY always reported a positive cash flow from operatings.
1.2 Ratios
WLY's Return On Assets of -1.90% is in line compared to the rest of the industry. WLY outperforms 45.98% of its industry peers.
Looking at the Return On Equity, with a value of -6.57%, WLY is in line with its industry, outperforming 44.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.90%, WLY belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
WLY had an Average Return On Invested Capital over the past 3 years of 8.02%. This is in line with the industry average of 7.01%.
The last Return On Invested Capital (8.90%) for WLY is above the 3 year average (8.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.9% | ||
| ROE | -6.57% | ||
| ROIC | 8.9% |
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
Looking at the Operating Margin, with a value of 13.10%, WLY is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
WLY's Operating Margin has been stable in the last couple of years.
WLY has a Gross Margin of 72.54%. This is amongst the best in the industry. WLY outperforms 86.21% 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 | 13.1% | ||
| PM (TTM) | N/A | ||
| GM | 72.54% |
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.
The debt/assets ratio for WLY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that WLY is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.43, WLY is doing good in the industry, outperforming 77.01% of the companies in the same industry.
The Debt to FCF ratio of WLY is 7.36, which is on the high side as it means it would take WLY, 7.36 years of fcf income to pay off all of its debts.
WLY's Debt to FCF ratio of 7.36 is fine compared to the rest of the industry. WLY outperforms 64.37% of its industry peers.
WLY has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.26, WLY is doing worse than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 7.36 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.1
WACC8.1%
2.3 Liquidity
WLY has a Current Ratio of 0.66. 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 0.66, WLY is not doing good in the industry: 87.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.61 indicates that WLY may have some problems paying its short term obligations.
WLY has a Quick ratio of 0.61. This is amonst the worse of the industry: WLY underperforms 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for WLY have decreased by -1.82% in the last year.
The Earnings Per Share has been decreasing by -1.24% on average over the past years.
The Revenue for WLY has decreased by -10.29% in the past year. This is quite bad
WLY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.80% yearly.
EPS 1Y (TTM)-1.82%
EPS 3Y-1.61%
EPS 5Y-1.24%
EPS Q2Q%32.88%
Revenue 1Y (TTM)-10.29%
Revenue growth 3Y-1.19%
Revenue growth 5Y0.8%
Sales Q2Q%-13.44%
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.
WLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y22.64%
EPS Next 2Y10.74%
EPS Next 3Y23.96%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
WLY is valuated correctly with a Price/Earnings ratio of 12.19.
Based on the Price/Earnings ratio, WLY is valued a bit cheaper than 72.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. WLY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.50 indicates a reasonable valuation of WLY.
Based on the Price/Forward Earnings ratio, WLY is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
WLY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLY is valued a bit cheaper than 60.92% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 8.02 |
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.
WLY's earnings are expected to grow with 23.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y10.74%
EPS Next 3Y23.96%
5. Dividend
5.1 Amount
WLY has a Yearly Dividend Yield of 3.53%.
In the last 3 months the price of WLY has falen by -24.31%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.48, WLY pays a better dividend. On top of this WLY pays more dividend than 80.46% of the companies listed in the same industry.
WLY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of WLY has a limited annual growth rate of 1.07%.
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)1.07%
Div Incr Years25
Div Non Decr Years25
5.3 Sustainability
The earnings of WLY are negative and hence is the payout ratio. WLY will probably not be able to sustain this dividend level.
WLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-154.35%
EPS Next 2Y10.74%
EPS Next 3Y23.96%
39.48
-0.43 (-1.08%)
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 Change0.06%
Market Cap2.13B
Analysts80
Price Target59.16 (49.85%)
Short Float %4.56%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend1.4
Dividend Growth(5Y)1.07%
DP-154.35%
Div Incr Years25
Div Non Decr Years25
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.13%
Min EPS beat(2)-15.39%
Max EPS beat(2)9.14%
EPS beat(4)3
Avg EPS beat(4)17.87%
Min EPS beat(4)-15.39%
Max EPS beat(4)47.9%
EPS beat(8)6
Avg EPS beat(8)85.45%
EPS beat(12)9
Avg EPS beat(12)55.29%
EPS beat(16)13
Avg EPS beat(16)48.07%
Revenue beat(2)2
Avg Revenue beat(2)1.88%
Min Revenue beat(2)0.56%
Max Revenue beat(2)3.2%
Revenue beat(4)4
Avg Revenue beat(4)5.32%
Min Revenue beat(4)0.56%
Max Revenue beat(4)11.77%
Revenue beat(8)6
Avg Revenue beat(8)8.43%
Revenue beat(12)6
Avg Revenue beat(12)4.66%
Revenue beat(16)10
Avg Revenue beat(16)4.26%
PT rev (1m)0%
PT rev (3m)9.43%
EPS NQ rev (1m)-26.14%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.51%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 11.5 | ||
| P/S | 1.21 | ||
| P/FCF | 16.34 | ||
| P/OCF | 10.82 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)3.24
EY8.21%
EPS(NY)3.43
Fwd EY8.7%
FCF(TTM)2.42
FCFY6.12%
OCF(TTM)3.65
OCFY9.24%
SpS32.57
BVpS13.98
TBVpS-17.5
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.9% | ||
| ROE | -6.57% | ||
| ROCE | 11.26% | ||
| ROIC | 8.9% | ||
| ROICexc | 9.24% | ||
| ROICexgc | 67.15% | ||
| OM | 13.1% | ||
| PM (TTM) | N/A | ||
| GM | 72.54% | ||
| FCFM | 7.42% |
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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 7.36 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 44.81% | ||
| Cap/Sales | 3.78% | ||
| Interest Coverage | 4.57 | ||
| Cash Conversion | 52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 2.43 |
F-Score5
WACC8.1%
ROIC/WACC1.1
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)-1.82%
EPS 3Y-1.61%
EPS 5Y-1.24%
EPS Q2Q%32.88%
EPS Next Y22.64%
EPS Next 2Y10.74%
EPS Next 3Y23.96%
EPS Next 5Y10.08%
Revenue 1Y (TTM)-10.29%
Revenue growth 3Y-1.19%
Revenue growth 5Y0.8%
Sales Q2Q%-13.44%
Revenue Next Year-9.61%
Revenue Next 2Y-4.39%
Revenue Next 3Y9.83%
Revenue Next 5Y4.09%
EBIT growth 1Y3.92%
EBIT growth 3Y0.38%
EBIT growth 5Y-0.3%
EBIT Next Year900%
EBIT Next 3Y131.57%
EBIT Next 5Y82.5%
FCF growth 1Y-47.54%
FCF growth 3Y-22.84%
FCF growth 5Y-5.65%
OCF growth 1Y-41.76%
OCF growth 3Y-16.75%
OCF growth 5Y-3.71%