NYSE:JW.A

Stock Analysis Report

Executive Summary

John Wiley & Sons, Inc. operates as a research and learning company worldwide.

Rewards

Trading at 50.1% below its fair value

Earnings are forecast to grow 13.33% per year

Pays a reliable dividend of 3.18%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has John Wiley & Sons's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JW.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.5%

JW.A

0.6%

US Media

0.5%

US Market


1 Year Return

-19.1%

JW.A

19.9%

US Media

20.3%

US Market

Return vs Industry: JW.A underperformed the US Media industry which returned 19.9% over the past year.

Return vs Market: JW.A underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

JW.AIndustryMarket
7 Day-1.5%0.6%0.5%
30 Day-11.4%0.8%2.0%
90 Day-7.6%6.2%9.4%
1 Year-16.7%-19.1%21.5%19.9%22.8%20.3%
3 Year-13.0%-19.3%18.7%13.8%50.1%40.4%
5 Year-25.9%-34.5%35.8%25.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is John Wiley & Sons's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is John Wiley & Sons undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JW.A ($42.83) is trading below our estimate of fair value ($85.88)

Significantly Below Fair Value: JW.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JW.A is poor value based on its PE Ratio (16.6x) compared to the Media industry average (14.4x).

PE vs Market: JW.A is good value based on its PE Ratio (16.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: JW.A is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: JW.A is overvalued based on its PB Ratio (2x) compared to the US Media industry average (1.4x).


Next Steps

Future Growth

How is John Wiley & Sons forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JW.A's forecast earnings growth (13.3% per year) is above the savings rate (1.7%).

Earnings vs Market: JW.A's earnings (13.3% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: JW.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: JW.A's revenue (3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: JW.A's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JW.A's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has John Wiley & Sons performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JW.A has high quality earnings.

Growing Profit Margin: JW.A's current net profit margins (8%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: JW.A's earnings have grown by 0.7% per year over the past 5 years.

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

Earnings vs Industry: JW.A had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the Media industry average (2.4%).


Return on Equity

High ROE: JW.A's Return on Equity (12.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is John Wiley & Sons's financial position?


Financial Position Analysis

Short Term Liabilities: JW.A's short term assets ($447.2M) do not cover its short term liabilities ($585.6M).

Long Term Liabilities: JW.A's short term assets ($447.2M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: JW.A's debt to equity ratio (67.4%) is considered high.

Reducing Debt: JW.A's debt to equity ratio has reduced from 68.8% to 67.4% over the past 5 years.

Debt Coverage: JW.A's debt is well covered by operating cash flow (33.7%).

Interest Coverage: JW.A's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: JW.A's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is John Wiley & Sons's current dividend yield, its reliability and sustainability?

3.21%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: JW.A's dividend (3.18%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: JW.A's dividend (3.18%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: JW.A's dividends per share have been stable in the past 10 years.

Growing Dividend: JW.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.9%), JW.A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Brian Napack (57yo)

2.2yrs

Tenure

US$5,499,029

Compensation

Mr. Brian A. Napack has been the President and Chief Executive Officer of John Wiley & Sons, Inc. since December 04, 2017. Mr. Napack was a Senior Advisor of Providence Equity Partners LLC since March 13,  ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD5.50M) is about average for companies of similar size in the US market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jesse Wiley
Non-Executive Chairman1yrsUS$119.11k0.044% $1.0m
Brian Napack
President2.2yrsUS$5.50m0.079% $1.9m
John Kritzmacher
Executive VP of Operations & CFO6.6yrsUS$2.97m0.074% $1.8m
Aref Matin
Executive VP & CTO1.8yrsUS$4.13m0.0014% $33.1k
Matthew Kissner
Executive VP & Group Executive1yrsUS$301.02k0.069% $1.6m
Judy Verses
Executive VP & GM of Research0yrsUS$1.75m0.012% $285.1k
Christopher Caridi
Senior VP2.9yrsno data0.0040% $94.2k
Brian Campbell
Vice President12.1yrsno datano data
Deirdre Silver
Executive VP & General Counsel0.08yrsno data0.0036% $85.2k
Nadeen Ayala
Senior Vice President of Communications & Branding1.1yrsno datano data

2.0yrs

Average Tenure

58yo

Average Age

Experienced Management: JW.A's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jesse Wiley
Non-Executive Chairman1yrsUS$119.11k0.044% $1.0m
Brian Napack
President2.2yrsUS$5.50m0.079% $1.9m
George Bell
Independent Director5.4yrsUS$252.38kno data
William Pesce
Independent Director21.8yrsUS$221.75k0.13% $3.1m
Raymond McDaniel
Independent Director14.4yrsUS$317.49k0.00089% $21.2k
Mari Baker
Independent Director8.4yrsUS$256.32kno data
David Dobson
Independent Director2.9yrsUS$210.18k0.0085% $203.2k
William Pence
Independent Director3.8yrsUS$213.75k0.011% $271.5k
Laurie Leshin
Independent Director4.3yrsUS$219.40kno data
Beth Birnbaum
Independent Director1.4yrsUS$162.46kno data

4.0yrs

Average Tenure

56yo

Average Age

Experienced Board: JW.A's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

John Wiley & Sons, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: John Wiley & Sons, Inc.
  • Ticker: JW.A
  • Exchange: NYSE
  • Founded: 1807
  • Industry: Publishing
  • Sector: Media
  • Market Cap: US$2.379b
  • Shares outstanding: 56.16m
  • Website: https://www.wiley.com

Number of Employees


Location

  • John Wiley & Sons, Inc.
  • 111 River Street
  • Hoboken
  • New Jersey
  • 7030
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JW.ANYSE (New York Stock Exchange)YesClass A SharesUSUSDJul 1995
JW.BNYSE (New York Stock Exchange)Class B SharesUSUSDJul 1995
2F7DB (Deutsche Boerse AG)YesClass A SharesDEEURJul 1995

Biography

John Wiley & Sons, Inc. operates as a research and learning company worldwide. It operates in three segments: Research, Publishing, and Solutions. The Research segment offers scientific, technical, medical, and scholarly journals; and related content and services. It also publishes physical sciences and engineering, health sciences, social sciences, and humanities and life sciences journals; and provides a publishing software and service for scholarly and professional societies, and publishers to deliver, host, enhance, market, and manage their content on the Web through the Literatum platform. This segment serves academic, corporate, government, and public libraries; funders of research; researchers, scientists, clinicians, engineers, and technologists; and students and professors. It sells its products in digital and print formats through research libraries and library consortia, and independent subscription agents, as well as directly to professional society members, bookstores, online booksellers, and other customers. The Publishing segment acquires, develops, and publishes scientific, professional, and education books and related content, as well as provides test preparation services and course workflow tools to libraries, corporations, students, professionals, and researchers. It serves business, finance, accounting, workplace learning, management, leadership, technology, behavioral health, engineering/ architecture, science and medicine, and education communities. This segment distributes its products in digital and print formats through chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, Websites, distributor networks, and other online applications. The Solutions segment provides online program management services for higher education institutions; and learning, development, and assessment services for businesses and professionals. The company was founded in 1807 and is headquartered in Hoboken, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:50
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.