| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 5/6 |
WLY Stock Overview
John Wiley & Sons, Inc. operates as a research and education company worldwide.
John Wiley & Sons Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$52.06 |
| 52 Week High | US$59.87 |
| 52 Week Low | US$45.14 |
| Beta | 0.82 |
| 1 Month Change | 10.70% |
| 3 Month Change | 3.85% |
| 1 Year Change | -11.07% |
| 3 Year Change | 21.69% |
| 5 Year Change | -2.78% |
| Change since IPO | 652.11% |
Recent News & Updates
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:
Capital Allocation Trends At John Wiley & Sons (NYSE:WLY) Aren't Ideal
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Should You Think About Buying John Wiley & Sons, Inc. (NYSE:WLY) Now?
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Shareholder Returns
| WLY | US Media | US Market | |
|---|---|---|---|
| 7D | 1.1% | 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
| WLY volatility | |
|---|---|
| WLY Average Weekly Movement | 4.2% |
| Media Industry Average Movement | 8.2% |
| Market Average Movement | 7.9% |
| 10% most volatile stocks in US Market | 17.2% |
| 10% least volatile stocks in US Market | 3.2% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1807 | 9,500 | Brian Napack | https://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
| WLY fundamental statistics | |
|---|---|
| Market Cap | US$2.90b |
| Earnings (TTM) | US$148.31m |
| Revenue (TTM) | US$2.08b |
19.6x
P/E Ratio1.4x
P/S RatioIs WLY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WLY income statement (TTM) | |
|---|---|
| Revenue | US$2.08b |
| Cost of Revenue | US$637.76m |
| Gross Profit | US$1.45b |
| Other Expenses | US$1.30b |
| Earnings | US$148.31m |
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.66 |
| Gross Margin | 69.38% |
| Net Profit Margin | 7.12% |
| Debt/Equity Ratio | 68.9% |
How did WLY perform over the long term?
See historical performance and comparisonDividends
2.7%
Current Dividend Yield52%
Payout RatioValuation
Is WLY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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.
| What is WLY's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$2.90b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.8x |
| Enterprise Value/EBITDA | 11.1x |
| PEG Ratio | 3.8x |
Price to Earnings Ratio vs Peers
How does WLY's PE Ratio compare to its peers?
| WLY PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 21.4x | ||
NYT New York Times | 26.6x | -6.1% | US$5.1b |
SCHL Scholastic | 19.5x | n/a | US$1.6b |
NWSA News | 21.3x | 8.1% | US$10.7b |
DJCO Daily Journal | 18.1x | n/a | US$365.2m |
WLY John Wiley & Sons | 19.6x | 5.1% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 19.6x |
| Fair PE Ratio | 16.5x |
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
1/6Future 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
2/6Past 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.
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Financial Health
How is John Wiley & Sons's financial position?
Financial Health Score
2/6Financial 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
5/6Dividend 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.
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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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/09 00:00 |
| End of Day Share Price | 2022/08/09 00:00 |
| Earnings | 2022/04/30 |
| Annual Earnings | 2022/04/30 |
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.