VALU  Value Line Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Investment Managers

Market Cap.

161.14M

Vuru Grade

37.43/100

Current Price

$16.60
+0.14 (+0.85%)

Growth Price

$2.47
Overvalued by 85.10%

Stability Price

$7.92
Overvalued by 52.28%

Company Metrics

  • P/E 25.90
  • P/S 4.57
  • P/B 4.16
  • EPS 0.64
  • Cash ROIC -3.59%
  • Cash Ratio 0.94
  • Dividend 0.72 / 4.34 %
  • Avg. Vol. 1,911.00
  • Shares 9.71M
  • Market Cap. 161.14M

Company Description

Value Line, Inc. engages in the production of investment related periodical publications and provision of investment management services primarily in the United States. It operates in two segments, Investment Periodicals, Related Publications and Copyright Data; and Investment Management. The Investment Periodicals, Related Publications and Copyright Data segment produces investment related retail... more


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

News

Value Line, Inc. Announces First Quarter Earnings
GlobeNewswire (press release) - Sep 13, 2017
Value Line, Inc. is a leading New York based provider of investment research. The Value Line Investment Survey is one of the most widely used sources of independent equity investment research.
Value Line, Inc. Announces a Quarterly Cash Dividend of $0.18 Per Common Share
GlobeNewswire (press release) - Jul 21, 2017
NEW YORK, July 21, 2017 (GLOBE NEWSWIRE) -- Value Line, Inc., (NASDAQ:VALU) announced that its Board of Directors declared on July 21, 2017 a quarterly cash dividend of $0.18 per common share, payable on August 11, 2017, to stockholders of ...
Value Line, Inc. (VALU) Ex-Dividend Date Scheduled for April 28, 2017
Nasdaq - Apr 27, 2017
Value Line, Inc. ( VALU ) will begin trading ex-dividend on April 28, 2017. A cash dividend payment of $0.18 per share is scheduled to be paid on May 11, 2017.
Value Line Inc. (VALU) Plunges 5.09% on September 14
Equities.com - Sep 14, 2017
Value Line Inc. (VALU) had a rough trading day for Thursday September 14 as shares tumbled 5.09%, or a loss of $-0.8748 per share, to close at $16.33.
Does Value Line, Inc. (VALU) Have Any Gas After Forming This Bearish Wedge Down?
WeeklyHub - 11 hours ago
Investors sentiment decreased to 0.58 in 2017 Q2. Its down 0.57, from 1.15 in 2017Q1. It turned negative, as 2 investors sold Value Line, Inc. shares while 17 reduced holdings. 4 funds opened positions while 7 raised stakes. 793,725 shares or 1.71 ...
Value Line, Inc. (NASDAQ:VALU) Experiences Lighter than Usual Trading Volume - First News 24
Value Line Inc. (VALU) Settles Into New 52-Week Low on August 29 Session
Equities.com - Aug 29, 2017
Shares of Value Line Inc. (VALU) sank into a new 52-week low yesterday, and could be a company to watch at the open. The company's stock fell to as low as $13.26 yesterday after opening at $15.92.
Finish Line May Be A Value Trap - Seeking Alpha
Finish Line Inc. (FINL) closed at $10.67 in the last trading session - TopChronicle
Value Line, Inc. (VALU) Releases Earnings Results
The Ledger Gazette - Sep 14, 2017
Value Line logo Value Line, Inc. (NASDAQ:VALU) announced its quarterly earnings results on Wednesday. The financial services provider reported $0.23 earnings per share for the quarter, Bloomberg Earnings reports.
Value Line, Inc. (VALU) Posts Earnings Results - Dispatch Tribunal
Value Line posts 1Q profit - Yahoo News UK
Breaking Down: Value Line Inc (NASDAQ:VALU) Stock Drop Below Support ...
CML News - Sep 16, 2017
Value Line Inc has a one bull (extreme weakness) technical rating because it's trading below the 10 day, 50 day and 200 day simple moving averages while the 10-day moving average is below the 50-day moving average and the 50-day moving average is ...
Box (BOX) Trades at $18.17 After Triangle; Value Line (VALU) Sentiment Is 0.58
UtahHerald.com - Sep 23, 2017
The company has market cap of $161.15 million. The Firm markets under brands, including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. It has a ...
Where Value Line Inc (VALU) Stands In Terms Of Earnings Growth Against Its ...
Simply Wall St - Sep 8, 2017
43.06% EPS growth, which Value Line Inc (NASDAQ:VALU) reported for the past 12 months, is more than impressive. Despite this strong performance, the long-term trend in earnings growth and industry's growth as a whole are key factors for patient ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for VALU 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 VALU'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.

$16.60 Current Price

$2.47 Growth Price (DCF)

Overvalued by 85.10%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


VALU's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$7.92 Stability Price (EPV)

Overvalued by 52.28%


Discount Rate: 15.0%

$16.02 Book Price

Fairly valued


Very Poor Cash Return on Invested Capital over the past 5 years

VALU has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

VALU has lost $3.59 of cash for every $100 invested.
Figures in USD. Fiscal year ends in April
20132014201520162017
Free Cash Flow -1.62M 800,000.00 -1.14M 42,000.00 -5.36M
divided by
Invested Capital 43.43M 44.81M 45.70M 43.45M 39.35M
Cash ROIC -3.73% 1.79% -2.49% 0.10% -13.63%

Excellent Return on Equity over the past 5 years

Over the past 5 years, VALU has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

VALU has generated $22.00 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in April
20132014201520162017
Net Income 6.62M 6.77M 7.29M 7.29M 10.37M
divided by
Stockholders' Equity 32.99M 33.30M 34.44M 34.60M 37.85M
Return on Equity 20.07% 20.33% 21.17% 21.07% 27.39%

Mediocre Business Performance over the past 10 years

VALU isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

VALU has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Free Cash Flow 19.75M 14.17M -8.74M 10.55M -1.06M -1.62M 800,000.00 -1.14M 42,000.00 -5.36M

Weak Balance Sheet

VALU's financial position is not ideal. The key is to check whether VALU 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 125.86M 106.67M 39.96M 19.48M 15.92M 13.52M 15.01M 15.51M 16.76M 23.13M
Current Assets 132.24M 111.87M 54.94M 25.74M 19.12M 16.67M 18.27M 18.85M 19.95M 26.14M
Total Assets 137.95M 117.56M 59.99M 87.80M 84.37M 84.34M 86.88M 87.42M 86.51M 87.07M
Current Liabilities 44.18M 31.43M 33.67M 31.42M 27.18M 27.39M 27.06M 26.21M 26.30M 24.59M
Total Liabilities 50.10M 36.69M 38.54M 54.55M 52.06M 51.36M 53.58M 52.98M 51.91M 49.22M
Stockholder' Equity 87.85M 80.87M 21.45M 33.25M 32.31M 32.99M 33.30M 34.44M 34.60M 37.85M
Current Ratio 2.99 3.56 1.63 0.82 0.70 0.61 0.68 0.72 0.76 1.06
TL-to-TA 0.36 0.31 0.64 0.62 0.62 0.61 0.62 0.61 0.60 0.57

Low or No Reinvestment of Profits over the past 10 years

VALU has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to VALU operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Retained Earnings 70.95M 78.94M 19.81M 31.64M 31.63M 32.32M 33.18M 34.59M 35.52M 39.19M
Retained Earnings Growth - 11.25% -74.90% 59.71% -0.05% 2.17% 2.69% 4.23% 2.71% 10.31%

Varying Competitive Advantage over the past 10 years

VALU likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$22.37 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Net Income 25.55M 22.95M -23.19M 37.78M 6.93M 6.62M 6.77M 7.29M 7.29M 10.37M
divided by
Revenue 82.68M 69.24M 58.14M 48.67M 36.61M 35.84M 36.33M 35.52M 34.55M 42.70M
Net Profit Margin 30.90% 33.15% -39.88% 77.63% 18.92% 18.47% 18.63% 20.53% 21.11% 24.28%

Strong Pricing Power over the past 10 years

VALU 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.

$91.18 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 76.43M 63.37M 52.90M 43.95M 36.61M 30.15M 29.93M 28.44M 34.55M 42.70M
divided by
Revenue 82.68M 69.24M 58.14M 48.67M 36.61M 35.84M 36.33M 35.52M 34.55M 42.70M
Gross Margin 92.44% 91.53% 90.98% 90.31% 100.00% 84.11% 82.38% 80.07% 100.00% 100.00%

Low Capital Intensity over the past 10 years

VALU has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that VALU may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

23.66% 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 609,000.00 203,000.00 81,000.00 106,000.00 3.43M 2.79M 2.69M 2.54M 1.96M 1.68M
divided by
Net Income 25.55M 22.95M -23.19M 37.78M 6.93M 6.62M 6.77M 7.29M 7.29M 10.37M
Capital Expenditure Ratio 2.38% 0.88% -0.35% 0.28% 49.55% 42.12% 39.70% 34.89% 26.91% 16.24%

Very Strong Dividend History over the past 10 years

VALU has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests VALU 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 11.98M 14.97M 38.93M 23.96M 7.45M 5.94M 5.91M 5.89M 6.17M 6.62M
divided by
Shares Outstanding 9.98M 9.98M 9.98M 9.98M 9.92M 9.89M 9.84M 9.81M 9.78M 9.72M
Dividend Paid Per Share 1.20 1.50 3.90 2.40 0.75 0.60 0.60 0.60 0.63 0.68
Price at Year End 30.67 23.24 13.67 10.15 9.00 11.32 16.00 13.70 19.50 16.88
Dividend Yield 3.91% 6.45% 28.53% 23.65% 8.35% 5.30% 3.75% 4.38% 3.23% 4.03%

Strong History of Stock Buybacks over the past 10 years

VALU has a strong 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 9.98M 9.98M 9.98M 9.98M 9.92M 9.89M 9.84M 9.81M 9.78M 9.72M
Stock Bought Back - - - 0.02% 0.59% 0.34% 0.50% 0.26% 0.33% 0.61%
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