NasdaqGS:HMHC

Stock Analysis Report

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Market Cap

US$1.4b

Last Updated

2021/07/28 02:53 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.


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

Stable Share Price: HMHC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HMHC's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

HMHC

-17.3%

US Consumer Services

0.9%

US Market


1 Year Return

329.0%

HMHC

-51.2%

US Consumer Services

37.8%

US Market

Return vs Industry: HMHC exceeded the US Consumer Services industry which returned -51.2% over the past year.

Return vs Market: HMHC exceeded the US Market which returned 37.8% over the past year.


Shareholder returns

HMHCIndustryMarket
7 Day1.5%-17.3%0.9%
30 Day6.6%-24.7%0.3%
90 Day27.1%-46.3%2.1%
1 Year329.0%329.0%-51.1%-51.2%40.0%37.8%
3 Year77.0%77.0%-24.9%-27.7%63.8%53.5%
5 Year-34.6%-34.6%60.4%49.3%124.6%99.7%

Long-Term 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 compared to its fair value and its price relative to the market?

29.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HMHC ($11.24) is trading above our estimate of fair value ($10.9)

Significantly Below Fair Value: HMHC is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HMHC is overvalued based on its PB Ratio (29.6x) compared to the US Consumer Services industry average (1.8x).


Future Growth

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

3.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HMHC's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if HMHC's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HMHC's revenue (3.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: HMHC's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

-17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HMHC is currently unprofitable.

Growing Profit Margin: HMHC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HMHC is unprofitable, and losses have increased over the past 5 years at a rate of 17.1% per year.

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

Earnings vs Industry: HMHC is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (55.3%).


Return on Equity

High ROE: HMHC has a negative Return on Equity (-394.4%), as it is currently unprofitable.


Financial Health

How is Houghton Mifflin Harcourt's financial position?


Financial Position Analysis

Short Term Liabilities: HMHC's short term assets ($605.2M) exceed its short term liabilities ($507.9M).

Long Term Liabilities: HMHC's short term assets ($605.2M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: HMHC's debt to equity ratio (1323.3%) is considered high.

Reducing Debt: HMHC's debt to equity ratio has increased from 78.1% to 1323.3% over the past 5 years.


Balance Sheet


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: Whilst unprofitable HMHC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: HMHC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 17.3% per year.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if HMHC'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 HMHC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Jack Lynch (62 yo)

4.25yrs

Tenure

US$3,390,052

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 ($USD3.39M) is about average for companies of similar size in the US market ($USD3.71M).

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


Leadership Team

Experienced Management: HMHC's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: HMHC's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HMHC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.432b
  • Shares outstanding: 127.41m
  • Website: https://www.hmhco.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 02:53
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.