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 96 industry peers in the Media industry. WLY scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on WLY.
1. Profitability
1.1 Basic Checks
In the past year WLY was profitable.
WLY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WLY reported negative net income in multiple years.
In the past 5 years WLY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.59%, WLY is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
WLY has a Return On Equity of 6.03%. This is in the better half of the industry: WLY outperforms 72.92% of its industry peers.
The Return On Invested Capital of WLY (9.98%) is better than 88.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WLY is in line with the industry average of 6.56%.
The last Return On Invested Capital (9.98%) for WLY is above the 3 year average (8.02%), which is a sign of increasing profitability.
| 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
WLY has a better Profit Margin (2.43%) than 66.67% of its industry peers.
Looking at the Operating Margin, with a value of 13.96%, WLY is in the better half of the industry, outperforming 76.04% of the companies in the same industry.
WLY's Operating Margin has been stable in the last couple of years.
WLY's Gross Margin of 73.95% is amongst the best of the industry. WLY outperforms 90.63% of its industry peers.
WLY's Gross Margin has been stable in the last couple of years.
| 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.
WLY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WLY has less shares outstanding
WLY has a worse debt/assets ratio than last year.
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 73.96% 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 75.00% 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.
WLY has a Debt to Equity ratio (1.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 2.33 |
ROIC/WACC1.24
WACC8.05%
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.
WLY has a worse Current ratio (0.55) than 82.29% 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 81.25% 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 nice 14.80% over the past year.
Measured over the past years, WLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.24% on average per year.
WLY shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.76%.
The Revenue has been growing slightly by 0.80% on average over the past years.
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.
WLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
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 reasonably with a Price/Earnings ratio of 11.66.
Based on the Price/Earnings ratio, WLY is valued a bit cheaper than 76.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. WLY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.60 indicates a reasonable valuation of WLY.
70.83% of the companies in the same industry are more expensive than WLY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.77. WLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
WLY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WLY is cheaper than 67.71% of the companies in the same industry.
69.79% of the companies in the same industry are more expensive than WLY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.6 | ||
| EV/EBITDA | 7.87 |
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 decent profitability rating of WLY may justify a higher PE ratio.
WLY's earnings are expected to grow with 14.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y17.08%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
WLY has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.08, WLY pays a better dividend. On top of this WLY pays more dividend than 81.25% of the companies listed in the same industry.
WLY's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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
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 2Y17.08%
EPS Next 3Y14.85%
40.68
-0.08 (-0.2%)
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-1.05%
Market Cap2.19B
Analysts80
Price Target61.2 (50.44%)
Short Float %5.35%
Short Ratio4.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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)0%
PT rev (3m)3.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.05%
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 | 11.66 | ||
| Fwd PE | 10.6 | ||
| P/S | 1.29 | ||
| P/FCF | 12.6 | ||
| P/OCF | 9.3 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.87 |
EPS(TTM)3.49
EY8.58%
EPS(NY)3.84
Fwd EY9.43%
FCF(TTM)3.23
FCFY7.93%
OCF(TTM)4.37
OCFY10.75%
SpS31.63
BVpS12.72
TBVpS-17.94
PEG (NY)0.42
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 | 2.33 |
F-Score7
WACC8.05%
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%