VALU  Value Line Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Investment Managers

Market Cap.

186.72M

Vuru Grade

38.77/100

Current Price

$19.22
+0.22 (+1.16%)

Growth Price

$3.58
Overvalued by 81.40%

Stability Price

$9.16
Overvalued by 52.34%

Company Metrics

  • P/E 17.73
  • P/S 5.38
  • P/B 4.81
  • EPS 1.08
  • Cash ROIC -1.38%
  • Cash Ratio 0.64
  • Dividend 0.72 / 3.72%
  • Avg. Vol. 2,117.00
  • Shares 9.71M
  • Market Cap. 186.72M

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 a 5.88% Increase in Its Quarterly Cash Dividend to ...
GlobeNewswire (press release) - Apr 21, 2017
NEW YORK, April 21, 2017 (GLOBE NEWSWIRE) -- Value Line, Inc., (NASDAQ:VALU) announced that its Board of Directors declared on April 21, 2017 a quarterly cash dividend of $0.18 per common share, payable on May 11, 2017, to stockholders of record ...
Value Line Inc. VALU (US: Nasdaq)
Wall Street Journal - Feb 11, 2011
News Value Line Inc.VALU. Significant News Only. 04/21/17; Press Release. Value Line, Inc. Announces a 5.88% Increase in Its Quarterly Cash Dividend to $0.18 Per Common Share and Reaffirms Share Buyback Program.
Value line launches its new website
Seeking Alpha - Feb 27, 2017
Jason Wiseberg, Executive Vice President—Sales, stated “Value Line's new library focused website will allow our current and prospective customers to directly access the information they need to make informed purchasing decisions regarding Value Line's ...
BRIEF-Value Line announces a 5.88 pct increase in quarterly dividend
Reuters - Apr 21, 2017
WASHINGTON, April 21 The U.S. Department of Justice threatened on Friday to cut some funding to California as well as eight cities and counties across the United States, escalating a Trump administration crackdown on so-called sanctuary cities that do ...
Value Line Inc. (VALU) Soars 9.51% on May 23
Equities.com - May 23, 2017
Value Line Inc. (VALU) had a good day on the market for Tuesday May 23 as shares jumped 9.51% to close at $19.36. About 6,248 shares traded hands on 61 trades for the day, compared with an average daily volume of 1,833 shares out of a total float of ...
Value Line Inc. (VALU) Settles Into New 52-Week Low on May 24 Session
Equities.com - May 24, 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 $0.00 yesterday after opening at $0.00.
Value Line, Inc. (VALU) To Go Ex-Dividend on April 28th
BNB Daily (blog) - Apr 23, 2017
Value Line logo Value Line, Inc. (NASDAQ:VALU) declared a dividend on Friday, April 21st. Stockholders of record on Tuesday, May 2nd will be paid a dividend of 0.18 per share by the financial services provider on Thursday, May 11th.
Value Line, Inc. (VALU) Declares Dividend Increase - $0.18 Per Share
The Cerbat Gem - May 22, 2017
Value Line logo Value Line, Inc. (NASDAQ:VALU) announced a quarterly dividend on Friday, April 21st. Shareholders of record on Tuesday, May 2nd will be given a dividend of 0.18 per share by the financial services provider on Thursday, May 11th.
Value Line Inc. (VALU) Soars 5.64% on May 18
Equities.com - May 18, 2017
Value Line Inc. (VALU) had a good day on the market for Thursday May 18 as shares jumped 5.64% to close at $17.61. About 12,620 shares traded hands on 95 trades for the day, compared with an average daily volume of 1,760 shares out of a total float of ...
Decision Time: Value Line Inc (NASDAQ:VALU) Stock Technicals Hit Inflection Point
CML News - Mar 16, 2017
Decision Time: Value Line Inc (NASDAQ:VALU) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point.
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.

$19.22 Current Price

$3.58 Growth Price (DCF)

Overvalued by 81.40%


Growth Rate Assumed by Market: 167.18%


Future Free Cash Flow Growth Rate: -19.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.16 Stability Price (EPV)

Overvalued by 52.34%


Discount Rate: 15.0%

$14.87 Book Price

Overvalued by 22.62%


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 $1.38 of cash for every $100 invested.
Figures in USD. Fiscal year ends in April
20122013201420152016
Free Cash Flow -1.06M -1.62M 800,000.00 -1.14M 42,000.00
divided by
Invested Capital 41.26M 43.43M 44.81M 45.70M 43.45M
Cash ROIC -2.56% -3.73% 1.79% -2.49% 0.10%

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 $20.81 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in April
20122013201420152016
Net Income 6.93M 6.62M 6.77M 7.29M 7.29M
divided by
Stockholders' Equity 32.31M 32.99M 33.30M 34.44M 34.60M
Return on Equity 21.43% 20.07% 20.33% 21.17% 21.07%

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
2007200820092010201120122013201420152016
Free Cash Flow 24.39M 19.75M 14.17M -8.74M 10.55M -1.06M -1.62M 800,000.00 -1.14M 42,000.00

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
2007200820092010201120122013201420152016
Cash 113.28M 125.86M 106.67M 39.96M 19.48M 15.92M 13.52M 15.01M 15.51M 16.76M
Current Assets 122.24M 132.24M 111.87M 54.94M 25.74M 19.12M 16.67M 18.27M 18.85M 19.95M
Total Assets 128.96M 137.95M 117.56M 59.99M 87.80M 84.37M 84.34M 86.88M 87.42M 86.51M
Current Liabilities 47.06M 44.18M 31.43M 33.67M 31.42M 27.18M 27.39M 27.06M 26.21M 26.30M
Total Liabilities 53.39M 50.10M 36.69M 38.54M 54.55M 52.06M 51.36M 53.58M 52.98M 51.91M
Stockholder' Equity 75.57M 87.85M 80.87M 21.45M 33.25M 32.31M 32.99M 33.30M 34.44M 34.60M
Current Ratio 2.60 2.99 3.56 1.63 0.82 0.70 0.61 0.68 0.72 0.76
TL-to-TA 0.41 0.36 0.31 0.64 0.62 0.62 0.61 0.62 0.61 0.60

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
2007200820092010201120122013201420152016
Retained Earnings 57.38M 70.95M 78.94M 19.81M 31.64M 31.63M 32.32M 33.18M 34.59M 35.52M
Retained Earnings Growth - 23.65% 11.25% -74.90% 59.71% -0.05% 2.17% 2.69% 4.23% 2.71%

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.

$22.89 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in April
2007200820092010201120122013201420152016
Net Income 24.61M 25.55M 22.95M -23.19M 37.78M 6.93M 6.62M 6.77M 7.29M 7.29M
divided by
Revenue 83.64M 82.68M 69.24M 58.14M 48.67M 36.61M 35.84M 36.33M 35.52M 34.55M
Net Profit Margin 29.42% 30.90% 33.15% -39.88% 77.63% 18.92% 18.47% 18.63% 20.53% 21.11%

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.

$90.35 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
2007200820092010201120122013201420152016
Gross Profit 76.65M 76.43M 63.37M 52.90M 43.95M 36.61M 30.15M 29.93M 28.44M 34.55M
divided by
Revenue 83.64M 82.68M 69.24M 58.14M 48.67M 36.61M 35.84M 36.33M 35.52M 34.55M
Gross Margin 91.65% 92.44% 91.53% 90.98% 90.31% 100.00% 84.11% 82.38% 80.07% 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.

22.22% 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
2007200820092010201120122013201420152016
Capital Expenditure 795,000.00 609,000.00 203,000.00 81,000.00 106,000.00 3.43M 2.79M 2.69M 2.54M 1.96M
divided by
Net Income 24.61M 25.55M 22.95M -23.19M 37.78M 6.93M 6.62M 6.77M 7.29M 7.29M
Capital Expenditure Ratio 3.23% 2.38% 0.88% -0.35% 0.28% 49.55% 42.12% 39.70% 34.89% 26.91%

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
2007200820092010201120122013201420152016
Dividend Paid 10.98M 11.98M 14.97M 38.93M 23.96M 7.45M 5.94M 5.91M 5.89M 6.17M
divided by
Shares Outstanding 9.98M 9.98M 9.98M 9.98M 9.98M 9.92M 9.89M 9.84M 9.81M 9.78M
Dividend Paid Per Share 1.10 1.20 1.50 3.90 2.40 0.75 0.60 0.60 0.60 0.63
Price at Year End 34.00 30.67 23.24 13.67 10.15 9.00 11.32 16.00 13.70 19.50
Dividend Yield 3.24% 3.91% 6.45% 28.53% 23.65% 8.35% 5.30% 3.75% 4.38% 3.23%

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
2007200820092010201120122013201420152016
Shares Outstanding 9.98M 9.98M 9.98M 9.98M 9.98M 9.92M 9.89M 9.84M 9.81M 9.78M
Stock Bought Back - - - - 0.02% 0.59% 0.34% 0.50% 0.26% 0.33%
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