JW.A - Embedded Expectations Analysis - 2020 08 24
John Wiley & Sons, Inc. (JW.A:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 16.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management appears concerned about EBITDA margins, cash flows, and the transition to online learningSpecifically, management may be downplaying concerns about their margin expectations for both the Education Services and the Academic & Professional Learning segments, and they may be exaggerating the incremental margin strength of research sales. In addition, they may have concerns about the coronavirus impact on revenue and EPS, continued declines in new student lead volumes, and their ability to continue collecting on their receivables. Furthermore, management may lack confidence in their ability to maintain positive operational cash flow, sustain momentum in strategic areas of focus, and capitalize on the robust migration to online learning. Furthermore, they may be exaggerating having solid cash generation and business fundamentals, the progress of major efficiency initiatives, and their liquidity position. Also, they may be overstating the value of their university journals, book demand, and their smooth transition to work from home
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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.