JW-B  John Wiley & Sons Inc.

Vuru Grade

56.69/100

Current Price

$53.79
+1.05 (+1.99%)

Growth Price

$37.87
Overvalued by 29.59%

Stability Price

$27.60
Overvalued by 48.68%

Company Metrics

  • P/E 34.00
  • P/S 1.74
  • P/B 2.98
  • EPS 1.58
  • Cash ROIC 14.69%
  • Cash Ratio 0.07
  • Dividend 1.28 / 2.43 %
  • Avg. Vol. 591.00
  • Shares 57.07M
  • Market Cap. 3.07B

Company Description

John Wiley & Sons, Inc., together with its subsidiaries, publishes print and electronic products that provide content and digital solutions to customers worldwide. The company's Scientific, Technical, Medical, and Scholarly segment publishes titles for communities, including academic, corporate, government, and public libraries; researchers; scientists; clinicians; engineers and technologists; sch... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

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Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for JW-B to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate JW-B's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$53.79 Current Price

$37.87 Growth Price (DCF)

Overvalued by 29.59%


Growth Rate Assumed by Market: 11.35%


Future Free Cash Flow Growth Rate: -3.2%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$27.60 Stability Price (EPV)

Overvalued by 48.68%


Discount Rate: 15.0%

$54.03 Book Price

Fairly valued


Satisfactory Cash Return on Invested Capital over the past 5 years

JW-B has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely JW-B could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

JW-B has created $14.69 of cash for every $100 invested.
Figures in USD. Fiscal year ends in April
20132014201520162017
Free Cash Flow 278.33M 290.66M 286.00M 256.25M 203.80M
divided by
Invested Capital 1.81B 1.86B 1.74B 1.78B 1.76B
Cash ROIC 15.42% 15.62% 16.41% 14.43% 11.58%

Satisfactory Return on Equity over the past 5 years

JW-B has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

JW-B has generated $14.06 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in April
20132014201520162017
Net Income 144.23M 160.51M 176.87M 145.78M 113.64M
divided by
Stockholders' Equity 988.36M 1.18B 1.06B 1.04B 1.00B
Return on Equity 14.59% 13.58% 16.76% 14.06% 11.33%

Excellent Business Performance over the past 10 years

JW-B has been able to maintain profitability in good times and bad. This could mean JW-B has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

JW-B has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Free Cash Flow 116.75M 295.25M 370.68M 321.23M 312.27M 278.33M 290.66M 286.00M 256.25M 203.80M

Weak Balance Sheet

JW-B's financial position is not ideal. The key is to check whether JW-B is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Cash 59.31M 102.83M 153.51M 201.85M 259.83M 334.14M 486.38M 457.44M 363.81M 58.52M
Current Assets 447.58M 439.57M 485.71M 527.49M 574.60M 634.97M 789.66M 740.92M 670.68M 359.74M
Total Assets 2.59B 2.22B 2.32B 2.43B 2.53B 2.81B 3.08B 3.00B 2.92B 2.61B
Current Liabilities 691.16M 596.97M 674.37M 756.37M 640.93M 667.17M 729.59M 803.68M 781.81M 787.86M
Total Liabilities 1.90B 1.71B 1.59B 1.45B 1.52B 1.82B 1.90B 1.95B 1.88B 1.60B
Stockholder' Equity 689.12M 513.52M 722.44M 977.89M 1.02B 988.36M 1.18B 1.06B 1.04B 1.00B
Current Ratio 0.65 0.74 0.72 0.70 0.90 0.95 1.08 0.92 0.86 0.46
TL-to-TA 0.73 0.77 0.69 0.60 0.60 0.65 0.62 0.65 0.64 0.62

Consistent Reinvestment of Profits over the past 10 years

JW-B has consistently retained profits. This may put JW-B in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, JW-B can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Retained Earnings 794.76M 892.54M 1.00B 1.14B 1.30B 1.39B 1.49B 1.60B 1.67B 1.72B
Retained Earnings Growth - 12.30% 12.39% 13.27% 14.48% 6.67% 7.32% 7.28% 4.75% 2.52%

Competitive Industry over the past 10 years

JW-B is likely operating in an industry with medium to low barriers to entry. This may mean that JW-B doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that JW-B invests heavily in R&D and Sales, General & Administrative expenses.

Only $8.90 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Net Income 147.54M 128.26M 143.54M 171.89M 212.75M 144.23M 160.51M 176.87M 145.78M 113.64M
divided by
Revenue 1.67B 1.61B 1.70B 1.74B 1.78B 1.76B 1.78B 1.82B 1.73B 1.72B
Net Profit Margin 8.81% 7.96% 8.45% 9.86% 11.93% 8.19% 9.04% 9.71% 8.44% 6.61%

Strong Pricing Power over the past 10 years

JW-B has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$73.35 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Gross Profit 1.14B 1.09B 1.17B 1.20B 1.78B 1.23B 1.27B 1.32B 1.26B 1.26B
divided by
Revenue 1.67B 1.61B 1.70B 1.74B 1.78B 1.76B 1.78B 1.82B 1.73B 1.72B
Gross Margin 67.92% 67.95% 68.57% 69.07% 100.00% 69.77% 71.45% 72.58% 73.02% 73.19%

High Capital Intensity over the past 10 years

JW-B spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

52.08% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Capital Expenditure 163.38M 46.01M 48.11M 54.39M 67.38M 58.70M 57.56M 69.12M 93.71M 110.70M
divided by
Net Income 147.54M 128.26M 143.54M 171.89M 212.75M 144.23M 160.51M 176.87M 145.78M 113.64M
Capital Expenditure Ratio 110.74% 35.87% 33.52% 31.64% 31.67% 40.70% 35.86% 39.08% 64.28% 97.41%

Very Strong Dividend History over the past 10 years

JW-B has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests JW-B is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Dividend Paid 25.61M 30.48M 32.99M 38.76M 48.26M 57.43M 58.95M 68.50M 69.90M 71.55M
divided by
Shares Outstanding 59.32M 59.61M 59.68M 61.36M 61.27M 60.22M 59.51M 59.59M 58.73M 58.20M
Dividend Paid Per Share 0.43 0.51 0.55 0.63 0.79 0.95 0.99 1.15 1.19 1.23
Price at Year End 33.01 40.97 45.32 44.40 38.82 54.96 60.55 45.40 54.67 52.01
Dividend Yield 1.31% 1.25% 1.22% 1.42% 2.03% 1.73% 1.64% 2.53% 2.18% 2.36%

History of Stock Buybacks over the past 10 years

JW-B has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Shares Outstanding 59.32M 59.61M 59.68M 61.36M 61.27M 60.22M 59.51M 59.59M 58.73M 58.20M
Stock Bought Back - -0.48% -0.12% -2.74% 0.14% 1.74% 1.19% -0.13% 1.46% 0.92%
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