Report
Valens Research

JW.A- Embedded Expectations Analysis - 2019 04 05

John Wiley & Sons (JW.A:USA) currently trades near recent lows relative to
UAFRS-based (Uniform) Earnings, with a 13.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management is concerned about their Projekt DEAL publishing agreement, publishing segment revenue declines, university partnerships, and their degree program and subscription services.

Specifically, management may be exaggerating the benefits of their Projekt DEAL publishing agreement, the potential of the Open Access journal, and their global leadership position. Additionally, they may be overstating the importance of publishers in the research ecosystem, and may be concerned about publishing segment revenue declines and the progress of their Learning House integration. Furthermore, they may be concerned about the quality of their degree program resources, their Inclusive Access university partnerships, and their ability to address disruptions in their education and professional books business. Finally, management may be overstating the strength of the German university structure, the potential of their Test Prep business, and the value of their subscription access service.
Underlying
John Wiley & Sons Inc. Class A

John Wiley & Sons is a global research and learning company. Co. has three segments: Research segment, which provides scientific, technical, medical, and scholarly journals, as well as related content and services to libraries and individual researchers, among others; Publishing, which provides scientific, professional, and education books and related content in print and digital formats, test preparation services and course workflow tools, to libraries, corporations, students, professionals, and researchers; and Solutions, which provides online program management services for higher education institutions and learning, development, and assessment services for businesses and professionals.

Provider
Valens Research
Valens Research

In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:

  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
  • Stock analyst recommendations are not grounded in disciplined financial analysis
  • Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
  • Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available

We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.

  • Corporate credit ratings remain years behind the fundamental underpinnings of company performance
  • Stock analysts continue to make recommendations with deeply inherent biases
  • Research firms have failed to break down the walls between credit, equity, and macroeconomic research
  • The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming

The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.

Analysts
Valens Research

Other Reports on these Companies
Other Reports from Valens Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch