NasdaqGS:HMHC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with mediocre balance sheet.

Risks

  • Houghton Mifflin Harcourt has significant price volatility in the past 3 months.

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

4.3%

NasdaqGS:HMHC

2.0%

US Consumer Services

-0.3%

US Market


1 Year Return

-22.8%

NasdaqGS:HMHC

2.2%

US Consumer Services

3.4%

US Market

HMHC underperformed the Consumer Services industry which returned 2% over the past year.

HMHC underperformed the Market in United States of America which returned 4.1% over the past year.


Share holder returns

HMHCIndustryMarket
7 Day4.3%2.0%-0.3%
30 Day0.9%2.5%2.9%
90 Day-26.2%8.0%2.1%
1 Year-22.8%-22.8%5.3%2.2%5.7%3.4%
3 Year-67.3%-67.3%110.7%98.1%45.8%36.2%
5 Year-68.0%-68.0%154.2%128.6%58.9%41.3%

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

Valuation

Is Houghton Mifflin Harcourt undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Houghton Mifflin Harcourt's share price is below the future cash flow value, and at a moderate discount (> 20%).

Houghton Mifflin Harcourt's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Houghton Mifflin Harcourt is loss making, we can't compare its value to the US Consumer Services industry average.

Houghton Mifflin Harcourt is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Houghton Mifflin Harcourt, we can't assess if its growth is good value.


Price Based on Value of Assets

Houghton Mifflin Harcourt is good value based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is Houghton Mifflin Harcourt expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Houghton Mifflin Harcourt's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

Houghton Mifflin Harcourt is not considered high growth as it is expected to be loss making for the next 1-3 years.

Houghton Mifflin Harcourt's revenue growth is positive but not above the United States of America market average.

Unable to compare Houghton Mifflin Harcourt's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Houghton Mifflin Harcourt's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Houghton Mifflin Harcourt will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

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

-4.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Houghton Mifflin Harcourt does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Houghton Mifflin Harcourt's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Houghton Mifflin Harcourt's 1-year growth to the US Consumer Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Houghton Mifflin Harcourt has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Houghton Mifflin Harcourt has efficiently used its assets last year compared to the US Consumer Services industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Houghton Mifflin Harcourt improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Houghton Mifflin Harcourt's financial position?


Financial Position Analysis

Houghton Mifflin Harcourt is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Houghton Mifflin Harcourt's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Houghton Mifflin Harcourt's level of debt (116.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (14.4% vs 116.8% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.7x 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.

Houghton Mifflin Harcourt has sufficient cash runway for more than 3 years based on current free cash flow.

Houghton Mifflin Harcourt has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 51.3% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Houghton Mifflin Harcourt's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Houghton Mifflin Harcourt's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Houghton Mifflin Harcourt has not reported any payouts.

Unable to verify if Houghton Mifflin Harcourt's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Houghton Mifflin Harcourt has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Houghton Mifflin Harcourt's dividends in 3 years as they are not expected to pay a notable one for United States of America.


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?

2.3yrs

Average management tenure


CEO

Jack Lynch (60yo)

2.3yrs

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

Jack's remuneration is higher than average for companies of similar size in United States of America.

Jack's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

The tenure for the Houghton Mifflin Harcourt management team is about average.


Board Age and Tenure

6.8yrs

Average Tenure

61yo

Average Age

The tenure for the Houghton Mifflin Harcourt board of directors is about average.


Insider Trading

More shares have been bought than sold by Houghton Mifflin Harcourt individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$129,40014 May 19
Lawrence Fish
EntityIndividual
Role
Chairman of the Board
Shares20,000
Max PriceUS$6.47
SellUS$4,822,98008 Mar 19
Anchorage Capital Group, L.L.C.
EntityCompany
Shares622,320
Max PriceUS$7.75
BuyUS$101,69627 Nov 18
John McKernan
EntityIndividual
Role
Member of the Board of Directors
Shares11,200
Max PriceUS$9.08
BuyUS$1,000,28514 Nov 18
John Lynch
EntityIndividual
Role
President
Member of the Board of Directors
Shares112,518
Max PriceUS$8.89

Ownership Breakdown


Management Team

  • Bill Bayers (64yo)

    Executive VP

    • Tenure: 12.2yrs
    • Compensation: $1.64m
  • Jack Lynch (60yo)

    President

    • Tenure: 2.3yrs
    • Compensation: $4.19m
  • Alejandro Reyes (54yo)

    Senior VP & Chief People Officer

    • Tenure: 1.8yrs
  • Brian Shipman

    Head of Investor Relations & Senior VP

    • Tenure: 2.4yrs
  • Amy Dunkin (45yo)

    Senior VP & Chief Marketing Officer

    • Tenure: 2.5yrs
  • Trish Torizzo

    Chief Information Officer & Senior VP

    • Tenure: 1.8yrs
  • Kristen Lavelle

    Senior Vice President of Global Operations & Customer Experience

    • Tenure: 2.2yrs
  • Lee Ramsayer (54yo)

    Executive Vice President of Global Sales

    • Tenure: 3.5yrs
    • Compensation: $2.04m
  • Jim O'Neill (46yo)

    Executive VP & GM of Core Solutions

    • Tenure: 1.8yrs
    • Compensation: $1.59m
  • Joe Abbott (42yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: $2.63m

Board Members

  • E. Novak (70yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: $180.00k
  • Louis Gordon Crovitz (60yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: $170.00k
  • Dan Allen (50yo)

    Director

    • Tenure: 2.6yrs
  • Jack Lynch (60yo)

    President

    • Tenure: 2.2yrs
    • Compensation: $4.19m
  • John Killian (64yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: $200.00k
  • Jean Desravines (47yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: $182.78k
  • Jill Greenthal (62yo)

    Director

    • Tenure: 7.1yrs
    • Compensation: $187.50k
  • Tracey Weber (52yo)

    Director

    • Tenure: 3.0yrs
    • Compensation: $185.00k
  • Larry Fish (74yo)

    Chairman of the Board

    • Tenure: 8.5yrs
    • Compensation: $320.72k
  • Jock McKernan (71yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: $195.00k

Company Information

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


Key Information

  • Name: Houghton Mifflin Harcourt Company
  • Ticker: HMHC
  • Exchange: NasdaqGS
  • Founded: 1832
  • Industry: education services
  • Sector: consumer services
  • Market Cap: US$690.055m
  • Shares outstanding: 124.11m
  • Website: Click here

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 Analysis2019/07/18 00:59
End of Day Share Price2019/07/17 00:00
Earnings2019/03/31
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.