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VALU

Value Line NasdaqCM:VALU Stock Report

Last Price

US$44.00

Market Cap

US$416.8m

7D

-15.1%

1Y

28.7%

Updated

03 Oct, 2022

Data

Company Financials
VALU fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends3/6

VALU Stock Overview

Value Line, Inc., together with its subsidiaries, produces and sells investment periodicals and related publications primarily in the United States.

Value Line Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Value Line
Historical stock prices
Current Share PriceUS$44.00
52 Week HighUS$118.40
52 Week LowUS$30.44
Beta0.18
1 Month Change-36.39%
3 Month Change-28.92%
1 Year Change28.69%
3 Year Change91.47%
5 Year Change150.28%
Change since IPO72.55%

Recent News & Updates

Aug 29

Taking Profits On Value Line

Summary The company's asset management arm saw a large reduction in managed net assets from last year to this. This doesn't bode well for the future in my view. The shares are trading at an all time high, and the dividend yield is near a 5-year low. Paying more, getting less isn't a great plan in my view. Shares may continue to climb from current levels. In my experience, when an asset price goes parabolic, it's probably a good idea to leave the party. It’s been about 52 months since I first bought Value Line Inc. (VALU). Four months later, I took a 32% profit after I spotted some risks, and wrote an article to that effect with the very unoriginal title "Value Line: Growing Risks." I bought back in once again in mid-May of last year when the shares were trading at a PE of ~13, though I didn’t publish this fact on this forum. Since then, the shares have gone parabolic, so it’s time to review the name once again. I want to determine whether or not it makes sense to buy more, hold, or sell the position. I’ll make this determination by looking at the latest financial results and by looking at the valuation. Welcome to the “thesis statement” portion of the article. It’s here where I regale you with the gist of my thinking about a given company in case you couldn’t infer my thoughts from the title and the bullet points above. I offer these “thesis statement” paragraphs in each of my articles because I understand that not everyone wants to expose themselves to the full “Doyle experience.” The thesis statement allows you to enter the article, get the highlights, and get out before you suffer the effects of my bad jokes or naked bragging. I think the weight of averages is that Value Line’s revenue and net income will begin to slow over the next year, and I would only be willing to buy more if the shares were trading at a reasonably cheap valuation. The problem is that not only are the shares not cheap, they are trading at all time high valuations. This is a dangerous combination in my view, and for that reason I’ll be selling. If you own shares, I would recommend you follow suit. If you were considering buying, I would recommend you hold off until the price falls to match value. Given that the dividend yield is currently less than a third of the 10-year Treasury Note, I think there are far better alternatives out there at the moment. Financial Snapshot I’d characterise the financial results over the past few years in some ways as “steady Eddy.” For instance, revenue in FY 2022 is about 0.5% higher than it was in FY 2020. At the same time, though, net income is up by about 59%, primarily driven by a $2.3 million gain on "forgiveness of SBA loan" and the 83% uptick in profit interest in the EAM Trust, the company's asset management arm. Writing of EAM, I'm of the view that this is the engine of growth here. For instance, way back in 2014, about 20.6% of revenue came from EAM, and by FY 2022, that figure had spiked to 39%. Given this, and given the fact that total EAM managed net assets dropped 32.4% from FY 2021 to FY 2022 (from $4.964 billion in 2021 to $3.357 billion in 2022) is troubling in my view. On the bright side, both the capital structure, and the dividend are quite secure in my view. In particular, cash on hand represents about 60.5% of total liabilities. Additionally, dividends in FY 2022 represented only about 34% of cash from operations, and 35% of net income. So my expectation is that revenue and net income, especially from the EAM business, will likely drop from current levels. That said, I’d be comfortable adding to my position here assuming the price is right. Value Line Financials (Value Line investor relations) The Stock Since last I checked it seems that I've just experienced yet another bump in followers, which is simultaneously flattering and confusing. Anyway, welcome. You knew people haven't been exposed to my thoughts about the difference between a company and a stock, so welcome to the party. I am of the view that the business and the stock are very different things, and as such, we need to consider each of them separately when making a buy or sell decision. I'm of the view that a reasonably strong company can be a terrible investment at the wrong price, while a struggling company can be a decent investment if you pick it up at a sufficient discount to intrinsic value. Another way to conceive of this idea is that business is an organization that buys a number of inputs, like the time of stock analysts, performs value-adding activities to those, and sells the results at a profit. The stock, on the other hand, is a traded instrument that reflects the crowd's aggregate expectations about the long-term prospects for a given company. If you've invested in stocks previously, you may have noticed that the crowd can be capricious and has a tendency to drive prices up and down relatively frequently as it changes its mind about a given company’s distant future. Additionally, a company's stock can be buffeted by our collective view about "stocks" as an asset class, and Value Line may be particularly affected by this, as it may be seen as a proxy for the overall market. This disconnect between “company” and “stock” can be frustrating in some ways, but it also represents opportunity for us. In my experience, the only way to profitably trade stocks is by spotting a disconnect between current market expectations about the future performance for a given company, and subsequent results. It's typically the case that the lower the price paid for a given stock, the greater the investor's future returns. In order to buy at these cheap prices, you need to buy when the crowd is feeling particularly down in the dumps about a given name. In my world, "down in the dumps" means "cheap." You may remember from the discussion about the company that I expect revenue and profits from the EAM business to drop. Those who read my stuff regularly know that I measure the cheapness of a stock in a few ways, ranging from the simple to the more complicated. On the simple side, I track multiples of price to some measure of economic value, like earnings, free cash flow, book value, and the like. Ideally, I want to see a company trading at a discount to both the overall market and its own history. To put the current valuation in context, I became excited about an investment in Value Line when the shares were trading at ~12.5 in April of 2018. I sold when the shares hit a PE of 16.5 about four months later. I bought back in mid May of last year when the PE was hovering around 13. It’s a much, much different world per the following. VALU data by YCharts To drive home the fact that current valuations are unprecedented, please feast your eyes on this chart that goes way back to the mid 1980s. These shares have never been more expensive. VALU data by YCharts While investors are paying more for $1 of earnings than they ever have, they are receiving multi year low dividend yields per the following: VALU data by YCharts

Shareholder Returns

VALUUS Capital MarketsUS Market
7D-15.1%1.2%1.0%
1Y28.7%-22.2%-20.0%

Return vs Industry: VALU exceeded the US Capital Markets industry which returned -25.4% over the past year.

Return vs Market: VALU exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is VALU's price volatile compared to industry and market?
VALU volatility
VALU Average Weekly Movement14.0%
Capital Markets Industry Average Movement0.4%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: VALU is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: VALU's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1931140Howard Brecherhttps://www.valueline.com

Value Line, Inc., together with its subsidiaries, produces and sells investment periodicals and related publications primarily in the United States. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), and options. The company’s research services include The Value Line Investment Survey, The Value Line Investment Survey - Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus that provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks.

Value Line Fundamentals Summary

How do Value Line's earnings and revenue compare to its market cap?
VALU fundamental statistics
Market CapUS$416.76m
Earnings (TTM)US$22.38m
Revenue (TTM)US$40.30m

18.6x

P/E Ratio

10.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VALU income statement (TTM)
RevenueUS$40.30m
Cost of RevenueUS$5.00m
Gross ProfitUS$35.30m
Other ExpensesUS$12.92m
EarningsUS$22.38m

Last Reported Earnings

Jul 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.36
Gross Margin87.59%
Net Profit Margin55.54%
Debt/Equity Ratio0%

How did VALU perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

40%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VALU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VALU?

Other financial metrics that can be useful for relative valuation.

VALU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.1x
Enterprise Value/EBITDA29.5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does VALU's PE Ratio compare to its peers?

VALU PE Ratio vs Peers
The above table shows the PE ratio for VALU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.3x
BKKT Bakkt Holdings
30.5xn/aUS$600.7m
MKTW MarketWise
0.1x-16.7%US$746.7m
OTCM OTC Markets Group
20.7x3.3%US$640.0m
LPRO Open Lending
9.7x10.5%US$1.0b
VALU Value Line
18.6xn/aUS$416.8m

Price-To-Earnings vs Peers: VALU is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (15.3x).


Price to Earnings Ratio vs Industry

How does VALU's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: VALU is good value based on its Price-To-Earnings Ratio (18.6x) compared to the US Capital Markets industry average (24.9x)


Price to Earnings Ratio vs Fair Ratio

What is VALU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VALU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VALU's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of VALU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VALU ($44) is trading below our estimate of fair value ($50.82)

Significantly Below Fair Value: VALU is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is Value Line forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.7%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Value Line has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine Value Line's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Value Line performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


20.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VALU has high quality earnings.

Growing Profit Margin: VALU's current net profit margins (55.5%) are lower than last year (59.4%).


Past Earnings Growth Analysis

Earnings Trend: VALU's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: VALU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VALU had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Capital Markets industry average (33.2%).


Return on Equity

High ROE: VALU's Return on Equity (28.2%) is considered high.


Discover strong past performing companies

Financial Health

How is Value Line's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VALU's short term assets ($61.2M) exceed its short term liabilities ($23.0M).

Long Term Liabilities: VALU's short term assets ($61.2M) exceed its long term liabilities ($25.1M).


Debt to Equity History and Analysis

Debt Level: VALU is debt free.

Reducing Debt: VALU had no debt 5 years ago.

Debt Coverage: VALU has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VALU has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Value Line current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.27%

Current Dividend Yield

Dividend Yield vs Market

Value Line Dividend Yield vs Market
How does Value Line dividend yield compare to the market?
SegmentDividend Yield
Company (Value Line)2.3%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Capital Markets)2.9%
Analyst forecast in 3 Years (Value Line)n/a

Notable Dividend: VALU's dividend (2.27%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: VALU's dividend (2.27%) is low compared to the top 25% of dividend payers in the US market (4.75%).


Stability and Growth of Payments

Stable Dividend: VALU's dividend payments have been volatile in the past 10 years.

Growing Dividend: VALU's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40%), VALU's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.4%), VALU's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

12.5yrs

Average board tenure


CEO

Howard Brecher (69 yo)

30.75yrs

Tenure

US$789,500

Compensation

Mr. Howard A. Brecher has been the Chairman, Chief Executive Officer and President of Value Line, Inc. since October 20, 2011 and serves as its Chief Legal Officer since 2005. Mr. Brecher serves as Secreta...


CEO Compensation Analysis

Howard Brecher's Compensation vs Value Line Earnings
How has Howard Brecher's remuneration changed compared to Value Line's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 31 2022n/an/a

US$22m

Apr 30 2022US$790kUS$675k

US$24m

Jan 31 2022n/an/a

US$26m

Oct 31 2021n/an/a

US$27m

Jul 31 2021n/an/a

US$24m

Apr 30 2021US$897kUS$675k

US$23m

Jan 31 2021n/an/a

US$19m

Oct 31 2020n/an/a

US$17m

Jul 31 2020n/an/a

US$17m

Apr 30 2020US$870kUS$650k

US$15m

Jan 31 2020n/an/a

US$15m

Oct 31 2019n/an/a

US$13m

Jul 31 2019n/an/a

US$12m

Apr 30 2019US$823kUS$625k

US$12m

Jan 31 2019n/an/a

US$10m

Oct 31 2018n/an/a

US$17m

Jul 31 2018n/an/a

US$16m

Apr 30 2018US$712kUS$600k

US$15m

Jan 31 2018n/an/a

US$14m

Oct 31 2017n/an/a

US$7m

Jul 31 2017n/an/a

US$6m

Apr 30 2017US$752kUS$550k

US$10m

Jan 31 2017n/an/a

US$11m

Oct 31 2016n/an/a

US$11m

Jul 31 2016n/an/a

US$12m

Apr 30 2016US$740kUS$550k

US$7m

Compensation vs Market: Howard's total compensation ($USD789.50K) is below average for companies of similar size in the US market ($USD2.94M).

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


Board Members

Experienced Board: VALU's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

NasdaqCM:VALU Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
29 Aug 22SellUS$9,515Glenn MuenzerIndividual100US$95.15
16 May 22BuyUS$43,800Stephen AnastasioIndividual600US$73.00

Ownership Breakdown

What is the ownership structure of VALU?
Owner TypeNumber of SharesOwnership Percentage
General Public136,4391.4%
Institutions698,3877.4%
Individual Insiders8,636,93391.2%

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


Top Shareholders

Top 25 shareholders own 98.44% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
91.15%
Jean Buttner
8,633,733$379.9m0%no data
1.53%
Neuberger Berman Investment Advisers LLC
145,013$6.4m0.12%0.01%
1.26%
Dimensional Fund Advisors LP
119,675$5.3m0.15%no data
0.94%
BlackRock, Inc.
88,810$3.9m2.48%no data
0.58%
Wells Fargo & Company, Securities and Brokerage Investments
55,354$2.4m-3.49%no data
0.51%
Royce & Associates, LP
48,706$2.1m-27.38%0.02%
0.5%
GAMCO Investors, Inc.
47,300$2.1m0%0.01%
0.34%
Teton Advisors, LLC
32,000$1.4m-0.62%0.28%
0.26%
BNY Mellon Asset Management
25,026$1.1m4.23%no data
0.23%
Geode Capital Management, LLC
21,885$962.9k-11.28%no data
0.17%
North Star Investment Management Corporation
16,100$708.4k-22.22%0.07%
0.15%
EAM Investors, LLC
13,900$611.6k-51.81%0.14%
0.14%
State Street Global Advisors, Inc.
13,439$591.3k12.07%no data
0.12%
Northern Trust Global Investments
10,963$482.4k-0.97%no data
0.11%
Renaissance Technologies LLC
10,700$470.8k10.31%no data
0.1%
The Vanguard Group, Inc.
9,779$430.3k-1.59%no data
0.098%
STRS Ohio
9,300$409.2k-8.82%no data
0.051%
LPL Financial Corporation, Asset Management Arm
4,817$211.9k0%no data
0.046%
Auxier Asset Management LLC
4,339$190.9k0%0.04%
0.04%
Florida State Board of Administration
3,760$165.4k0%no data
0.026%
DuPont Capital Management Corporation
2,477$109.0k0%0.01%
0.026%
SagePoint Financial Advisors, Inc., Securities Investments
2,448$107.7k7.23%no data
0.02%
Morgan Stanley, Investment Banking and Brokerage Investments
1,936$85.2k-39.71%no data
0.017%
Howard Brecher
1,600$70.4k0%no data
0.015%
New York State Common Retirement Fund
1,374$60.5k0%no data

Company Information

Value Line, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Value Line, Inc.
  • Ticker: VALU
  • Exchange: NasdaqCM
  • Founded: 1931
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Implied Market Cap: US$416.757m
  • Shares outstanding: 9.47m
  • Website: https://www.valueline.com

Number of Employees


Location

  • Value Line, Inc.
  • 551 Fifth Avenue
  • New York
  • New York
  • 10176-0001
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VALUNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 1983

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/07/31
Annual Earnings2022/04/30


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.