John Wiley & Sons Inc.
Find Ratings ReportsWILEY (JOHN) & SONS's gross profit margin for the third quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. WILEY (JOHN) & SONS has very weak liquidity. Currently, the Quick Ratio is 0.36 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 27.12% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 460.71 | 491.37 |
EBITDA ($mil) | 90.67 | 88.94 |
EBIT ($mil) | 50.15 | 45.22 |
Net Income ($mil) | -113.88 | -71.47 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 93.1 | 126.99 |
Total Assets ($mil) | 2707.29 | 3150.26 |
Total Debt ($mil) | 1023.17 | 1085.43 |
Equity ($mil) | 748.31 | 1026.9 |
Profitability | Q3 FY23 | Q3 FY22 |
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Gross Profit Margin | 74.68 | 69.41 |
EBITDA Margin | 19.68 | 18.1 |
Operating Margin | 10.89 | 9.2 |
Sales Turnover | 0.71 | 0.65 |
Return on Assets | -5.8 | -0.25 |
Return on Equity | -21.01 | -0.78 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 0.54 | 0.7 |
Debt/Capital | 0.58 | 0.51 |
Interest Expense | 13.32 | 11.52 |
Interest Coverage | 3.76 | 3.93 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 54.86 | 55.45 |
Div / share | 0.35 | 0.35 |
EPS | -2.08 | -1.29 |
Book value / share | 13.64 | 18.52 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 638.0 | 696.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 2.73 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 11.80. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, WILEY (JOHN) & SONS proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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WLYB NM | Peers 47.17 | WLYB 8.29 | Peers 33.15 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. WLYB's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. WLYB is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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WLYB 12.00 | Peers 32.16 | WLYB NA | Peers 1.66 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. WLYB is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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WLYB 2.73 | Peers 11.80 | WLYB -1594.11 | Peers 148.13 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. WLYB is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, WLYB is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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WLYB 1.06 | Peers 12.32 | WLYB -5.34 | Peers 12.66 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. WLYB is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. WLYB significantly trails its peers on the basis of sales growth. |
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