DB:HM0

Stock Analysis Report

Houghton Mifflin Harcourt

Executive Summary

Houghton Mifflin Harcourt Company, a learning company, provides curriculum, supplemental, and intervention solutions; and professional learning services worldwide.

Snowflake

Fundamentals

Slightly overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has Houghton Mifflin Harcourt's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

HM0

-0.8%

DE Consumer Services

4.4%

DE Market


1 Year Return

-16.7%

HM0

-0.8%

DE Consumer Services

1.6%

DE Market

Return vs Industry: HM0 underperformed the German Consumer Services industry which returned -0.8% over the past year.

Return vs Market: HM0 underperformed the German Market which returned 1.6% over the past year.


Shareholder returns

HM0IndustryMarket
7 Day1.9%-0.8%4.4%
30 Day-24.1%-2.3%0.8%
90 Day-12.9%-1.7%2.3%
1 Year-16.7%-16.7%-0.4%-0.8%4.8%1.6%
3 Year-63.5%-63.5%-10.8%-14.0%18.9%8.6%
5 Year-71.6%-71.6%-22.3%-37.9%43.7%24.1%

Price Volatility Vs. Market

How volatile is Houghton Mifflin Harcourt's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Houghton Mifflin Harcourt undervalued compared to its fair value and its price relative to the market?

2.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HM0 (€4.34) is trading below our estimate of fair value (€4.43)

Significantly Undervalued: HM0 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HM0 is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: HM0 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate HM0's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HM0 is good value based on its PB Ratio (0.9x) compared to the XE Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is Houghton Mifflin Harcourt forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

50.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HM0 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HM0 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HM0 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HM0's revenue (3.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: HM0's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HM0 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Houghton Mifflin Harcourt performed over the past 5 years?

-3.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HM0 is unprofitable, and losses have increased over the past 5 years at a rate of -3.8% per year.

Accelerating Growth: Unable to compare HM0's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HM0 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (34.2%).


Return on Equity

High ROE: HM0 has a negative Return on Equity (-26.15%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HM0 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HM0 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Houghton Mifflin Harcourt's financial position?


Financial Position Analysis

Short Term Liabilities: HM0's short term assets ($737.3M) exceeds its short term liabilities ($583.4M)

Long Term Liabilities: HM0's short term assets (737.3M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: HM0's debt to equity ratio (134%) is considered high

Reducing Debt: HM0's debt to equity ratio has increased from 14.1% to 134% over the past 5 years.


Balance Sheet

Inventory Level: HM0 has a low level of unsold assets or inventory.

Debt Coverage by Assets: HM0's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HM0 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HM0 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Houghton Mifflin Harcourt's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate HM0's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HM0's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HM0's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HM0's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HM0's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Houghton Mifflin Harcourt's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Jack Lynch (60yo)

2.5yrs

Tenure

US$4,185,749

Compensation

Mr. John J. Lynch Jr., also known as Jack, has been the Chief Executive Officer, President and Director of Houghton Mifflin Harcourt Publishing Company (HMH) since 2017. Mr. Lynch joined HMH in 2017. Mr. L ...


CEO Compensation Analysis

Compensation vs. Market: Jack's total compensation ($USD4.19M) is about average for companies of similar size in the German market ($USD805.65K).

Compensation vs Earnings: Jack's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: HM0's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

61yo

Average Age

Experienced Board: HM0's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$115,20514 May 19
Lawrence Fish
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceUS$5.76
SellUS$4,296,31108 Mar 19
Anchorage Capital Group, L.L.C.
EntityCompany
Shares622,320
Max PriceUS$6.90
BuyUS$89,67627 Nov 18
John McKernan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,200
Max PriceUS$8.01
BuyUS$886,35314 Nov 18
John Lynch
EntityIndividual
Role
Chief Executive Officer
President
Shares112,518
Max PriceUS$7.88

Ownership Breakdown


Management Team

  • Kristen Lavelle

    Senior Vice President of Global Operations & Customer Experience

    • Tenure: 2.4yrs
  • Peter George (59yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Brian Shipman

    Head of Investor Relations & Senior VP

    • Tenure: 2.7yrs
  • Lee Ramsayer (54yo)

    Executive Vice President of Global Sales

    • Tenure: 3.8yrs
    • Compensation: US$2.04m
  • Jack Lynch (60yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$4.19m
  • Bill Bayers (64yo)

    Executive VP

    • Tenure: 12.4yrs
    • Compensation: US$1.64m
  • Jim O'Neill (46yo)

    Executive VP & GM of Core Solutions

    • Tenure: 2.1yrs
    • Compensation: US$1.59m
  • Joe Abbott (42yo)

    Executive VP & CFO

    • Tenure: 3.6yrs
    • Compensation: US$2.63m
  • Alejandro Reyes (54yo)

    Senior VP & Chief People Officer

    • Tenure: 2yrs
  • Trish Torizzo

    Chief Information Officer & Senior VP

    • Tenure: 2yrs

Board Members

  • E. Novak (70yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$180.00k
  • Jock McKernan (71yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: US$195.00k
  • Louis Gordon Crovitz (60yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$170.00k
  • Tracey Weber (52yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$185.00k
  • Larry Fish (74yo)

    Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: US$320.72k
  • John Killian (64yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$200.00k
  • Jill Greenthal (62yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$187.50k
  • Jack Lynch (60yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$4.19m
  • Dan Allen (50yo)

    Director

    • Tenure: 2.8yrs
  • Jean Desravines (47yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$182.78k

Company Information

Houghton Mifflin Harcourt Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Houghton Mifflin Harcourt Company
  • Ticker: HM0
  • Exchange: DB
  • Founded: 1832
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$595.476m
  • Listing Market Cap: US$540.335m
  • Shares outstanding: 124.32m
  • Website: https://www.hmhco.com

Number of Employees


Location

  • Houghton Mifflin Harcourt Company
  • 125 High Street
  • Boston
  • Massachusetts
  • 2110
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMHCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2013
HM0DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2013

Biography

Houghton Mifflin Harcourt Company, a learning company, provides curriculum, supplemental, and intervention solutions; and professional learning services worldwide. The company operates in two segments, Edu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 21:31
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.