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WLY

John Wiley & Sons NYSE:WLY Stock Report

Last Price

US$52.06

Market Cap

US$2.9b

7D

1.1%

1Y

-11.1%

Updated

09 Aug, 2022

Data

Company Financials +
WLY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance2/6
Financial Health2/6
Dividends5/6

WLY Stock Overview

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

John Wiley & Sons Competitors

Price History & Performance

Summary of all time highs, changes and price drops for John Wiley & Sons
Historical stock prices
Current Share PriceUS$52.06
52 Week HighUS$59.87
52 Week LowUS$45.14
Beta0.82
1 Month Change10.70%
3 Month Change3.85%
1 Year Change-11.07%
3 Year Change21.69%
5 Year Change-2.78%
Change since IPO652.11%

Recent News & Updates

Aug 08

John Wiley: Growth Through Corporate Development, Online Education, And Open Publishing

John Wiley & Sons, Inc. surpassed $2 billion in revenue for FY2022. Critical contributors to achieving this milestone were direct-to-student marketing programs, onboarding corporate clients, and transitioning to online education. FY2023 is projected to be a challenging year due to an anticipated slowdown in consumer spending, unfavorable currency conversion, and a slowdown in M&A activity. Being one of the oldest companies in America and with over 215 years of operating history, the company is well prepared to overcome the near-term challenges. Investors looking to invest in a prominent name in publishing should consider investing in John Wiley & Sons, Inc. Investment Thesis Although John Wiley & Sons, Inc. ((WLY)(WLYB)) has surpassed the $2 billion annual revenue threshold, the softness in student enrollment and anticipated economic slowdown are weighing down the overall outlook for FY2023. With over 215 years in operation and 28 years of consecutive dividend increases, the company is well positioned to handle these challenges. It plans to remain focused on its core education development business for career-oriented students and corporate clients, scaling back M&A activity, and expanding its open publishing footprint. Investors looking to invest in a company that has successfully weathered the turbulent market environment in the past should consider investing in WLY and WLYB. Background John Wiley & Sons, Inc. is one of the oldest brands in America, starting operation in 1807. The company's revenue now exceeds $2 billion annually, 83% of which is digital, tech-enabled, and 58% recurring. The company also offers over 1900 valuable journal brand publications, digital content courseware, tech-enabled degree programs, and on-the-job training. Company organic revenue grows at a rate of around 5% per year. The company is uniquely positioned to capitalize on the continual increase in annual R&D spend, which has tripled over the last two decades from around $726 billion to $2.4 trillion. Business Headwinds The main headwinds to John Wiley & Sons, Inc. are as follows: Softness in university enrollment lowers the core student base of the company. Students and teachers continue to be impacted due to COVID-19 lockdowns in various geographic locations. Geo-political instability continues in various regions where the company operates. Transitioning from print-oriented to digital content has cannibalized print revenues from students, schools, and universities. With 50% of the revenue generated overseas, foreign exchange headwinds affect the bottom line because of the continued strength in USD vs. rest-of-world currencies. Business Tailwinds and Growth Catalysts The tailwinds associated with the company are as follows: Attracting more clients by delivering career-connected education. Attracting more corporate talent development clients who subscribe to multiple services simultaneously. This segment grew at the rate of 70% YoY in 2022. Expanding research publications output by leveraging the open publishing Hindawi platform (acquired in 2021). Strategically focusing on expanding the portfolio of publications to include high-demand jobs and careers. Continually expanding direct-to-student marketing through XYZ media (Acquired 2021). FY2022 Earnings Review John Wiley & Sons, Inc. ended its FY2022 on June 15th, 2022. Here are some key highlights from the earnings call:

Aug 01
Capital Allocation Trends At John Wiley & Sons (NYSE:WLY) Aren't Ideal

Capital Allocation Trends At John Wiley & Sons (NYSE:WLY) Aren't Ideal

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Jul 15
Should You Think About Buying John Wiley & Sons, Inc. (NYSE:WLY) Now?

Should You Think About Buying John Wiley & Sons, Inc. (NYSE:WLY) Now?

While John Wiley & Sons, Inc. ( NYSE:WLY ) might not be the most widely known stock at the moment, it saw significant...

Shareholder Returns

WLYUS MediaUS Market
7D1.1%2.1%0.3%
1Y-11.1%-34.2%-13.5%

Return vs Industry: WLY exceeded the US Media industry which returned -33.2% over the past year.

Return vs Market: WLY exceeded the US Market which returned -13% over the past year.

Price Volatility

Is WLY's price volatile compared to industry and market?
WLY volatility
WLY Average Weekly Movement4.2%
Media Industry Average Movement8.2%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: WLY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WLY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18079,500Brian Napackhttps://www.wiley.com

John Wiley & Sons, Inc. operates as a research and education company worldwide. The company operates through three segments: Research Publishing & Platforms, Academic & Professional Learning, and Education Services. The Research Publishing & Platforms segment offers scientific, technical, medical, and scholarly journals, as well as related content and services to learned societies, individual researchers, other professionals, and academic, corporate, and government libraries.

John Wiley & Sons Fundamentals Summary

How do John Wiley & Sons's earnings and revenue compare to its market cap?
WLY fundamental statistics
Market CapUS$2.90b
Earnings (TTM)US$148.31m
Revenue (TTM)US$2.08b

19.6x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WLY income statement (TTM)
RevenueUS$2.08b
Cost of RevenueUS$637.76m
Gross ProfitUS$1.45b
Other ExpensesUS$1.30b
EarningsUS$148.31m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.66
Gross Margin69.38%
Net Profit Margin7.12%
Debt/Equity Ratio68.9%

How did WLY perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

52%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 WLY?

Other financial metrics that can be useful for relative valuation.

WLY 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/Revenue1.8x
Enterprise Value/EBITDA11.1x
PEG Ratio3.8x

Price to Earnings Ratio vs Peers

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

WLY PE Ratio vs Peers
The above table shows the PE ratio for WLY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.4x
NYT New York Times
26.6x-6.1%US$5.1b
SCHL Scholastic
19.5xn/aUS$1.6b
NWSA News
21.3x8.1%US$10.7b
DJCO Daily Journal
18.1xn/aUS$365.2m
WLY John Wiley & Sons
19.6x5.1%US$2.9b

Price-To-Earnings vs Peers: WLY is good value based on its Price-To-Earnings Ratio (19.6x) compared to the peer average (21.4x).


Price to Earnings Ratio vs Industry

How does WLY's PE Ratio compare vs other companies in the US Media Industry?

Price-To-Earnings vs Industry: WLY is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the US Media industry average (12.6x)


Price to Earnings Ratio vs Fair Ratio

What is WLY'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.

WLY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.6x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: WLY is expensive based on its Price-To-Earnings Ratio (19.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


Share Price vs Fair Value

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

Below Fair Value: WLY ($52.06) is trading below our estimate of fair value ($133.91)

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


Analyst Price Targets

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

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is John Wiley & Sons forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLY's forecast earnings growth (5.1% per year) is above the savings rate (1.9%).

Earnings vs Market: WLY's earnings (5.1% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: WLY's revenue (3.4% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: WLY's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WLY's Return on Equity is forecast to be low in 3 years time (17.2%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-12.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WLY has high quality earnings.

Growing Profit Margin: WLY's current net profit margins (7.1%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: WLY's earnings have declined by 12.6% per year over the past 5 years.

Accelerating Growth: WLY's earnings growth over the past year (0.04%) exceeds its 5-year average (-12.6% per year).

Earnings vs Industry: WLY earnings growth over the past year (0.04%) underperformed the Media industry 0.04%.


Return on Equity

High ROE: WLY's Return on Equity (13%) is considered low.


Discover strong past performing companies

Financial Health

How is John Wiley & Sons's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: WLY's short term assets ($550.9M) do not cover its short term liabilities ($969.4M).

Long Term Liabilities: WLY's short term assets ($550.9M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: WLY's net debt to equity ratio (60%) is considered high.

Reducing Debt: WLY's debt to equity ratio has increased from 36.6% to 68.9% over the past 5 years.

Debt Coverage: WLY's debt is well covered by operating cash flow (43.1%).

Interest Coverage: WLY's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WLY's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: WLY's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (35.6%), WLY'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?

2.6yrs

Average management tenure


CEO

Brian Napack (60 yo)

4.67yrs

Tenure

US$7,339,200

Compensation

Mr. Brian A. Napack has been the President and Chief Executive Officer of John Wiley & Sons, Inc. since December 04, 2017. Mr. Napack has been Senior Advisor of Providence Equity Partners LLC since March 2...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD7.34M) is about average for companies of similar size in the US market ($USD6.59M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: WLY's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: WLY's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WLY 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

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


Key Information

  • Name: John Wiley & Sons, Inc.
  • Ticker: WLY
  • Exchange: NYSE
  • Founded: 1807
  • Industry: Publishing
  • Sector: Media
  • Implied Market Cap: US$2.903b
  • Shares outstanding: 55.75m
  • Website: https://www.wiley.com

Number of Employees


Location

  • John Wiley & Sons, Inc.
  • 111 River Street
  • Hoboken
  • New Jersey
  • 07030-5774
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/04/30
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.