WILEY (JOHN) & SONS-CLASS A (WLY) Stock Fundamental Analysis
NYSE:WLY - New York Stock Exchange, Inc. - US9682232064 - Common Stock - Currency: USD
WLY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 97 industry peers in the Media industry. While WLY is still in line with the averages on profitability rating, there are concerns on its financial health. WLY has a correct valuation and a medium growth rate. 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.
The reported net income has been mixed in the past 5 years: WLY reported negative net income in multiple years.
Of the past 5 years WLY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WLY (1.59%) is better than 65.98% of its industry peers.
The Return On Equity of WLY (6.03%) is better than 70.10% of its industry peers.
WLY has a better Return On Invested Capital (9.98%) than 85.57% of its industry peers.
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 7.63%.
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.
WLY has a Operating Margin of 13.96%. This is in the better half of the industry: WLY outperforms 72.16% of its industry peers.
WLY's Operating Margin has been stable in the last couple of years.
WLY has a better Gross Margin (73.95%) than 88.66% 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
WLY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WLY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.33 indicates that WLY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of WLY (2.33) is better than 73.20% 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.
With a decent Debt to FCF ratio value of 5.10, WLY is doing good in the industry, outperforming 73.20% of the companies in the same industry.
A Debt/Equity ratio of 1.28 is on the high side and indicates that WLY has dependencies on debt financing.
WLY's Debt to Equity ratio of 1.28 is on the low side compared to the rest of the industry. WLY is outperformed by 61.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.24
WACC8.02%
2.3 Liquidity
A Current Ratio of 0.55 indicates that WLY may have some problems paying its short term obligations.
The Current ratio of WLY (0.55) is worse than 84.54% of its industry peers.
A Quick Ratio of 0.52 indicates that WLY may have some problems paying its short term obligations.
The Quick ratio of WLY (0.52) is worse than 84.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.36% over the past year.
WLY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.75% yearly.
EPS 1Y (TTM)30.36%
EPS 3Y-1.85%
EPS 5Y8.75%
EPS Q2Q%13.22%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
WLY is valuated reasonably with a Price/Earnings ratio of 11.16.
Compared to the rest of the industry, the Price/Earnings ratio of WLY indicates a somewhat cheap valuation: WLY is cheaper than 76.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WLY to the average of the S&P500 Index (26.32), we can say WLY is valued rather cheaply.
A Price/Forward Earnings ratio of 10.61 indicates a reasonable valuation of WLY.
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.
When comparing the Price/Forward Earnings ratio of WLY to the average of the S&P500 Index (22.19), we can say WLY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLY is valued a bit cheaper than 64.95% of the companies in the same industry.
WLY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WLY is cheaper than 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.62 | ||
| EV/EBITDA | 7.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WLY may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)1.28
EPS Next 2Y7.8%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.81%, WLY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.97, WLY pays a better dividend. On top of this WLY pays more dividend than 83.51% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.07%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
184.69% of the earnings are spent on dividend by WLY. This is not a sustainable payout ratio.
WLY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP184.69%
EPS Next 2Y7.8%
EPS Next 3Y4.04%
40.72
+3.69 (+9.96%)
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-1.05%
Market Cap2.19B
Analysts80
Price Target61.2 (50.29%)
Short Float %6.23%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Yearly Dividend1.4
Dividend Growth(5Y)1.07%
DP184.69%
Div Incr Years26
Div Non Decr Years26
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)0%
PT rev (3m)3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.61 | ||
| P/S | 1.29 | ||
| P/FCF | 12.62 | ||
| P/OCF | 9.31 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)3.65
EY8.96%
EPS(NY)3.84
Fwd EY9.43%
FCF(TTM)3.23
FCFY7.93%
OCF(TTM)4.37
OCFY10.74%
SpS31.63
BVpS12.72
TBVpS-17.94
PEG (NY)2.17
PEG (5Y)1.28
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 | 2.33 |
F-Score7
WACC8.02%
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)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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.52%
Revenue Next Year1.19%
Revenue Next 2Y1.79%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
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%