WPO  Washington Post Company (The)

Exchange

NYSE

Sector

Consumer Services

Industry

Other Consumer Services

Market Cap.

4.875B

Vuru Grade

36.82/100

Current Price

$660.34
0.00 (0.00%)

Growth Price

$522.06
Overvalued by 20.94%

Stability Price

$413.89
Overvalued by 37.32%

Company Metrics

  • P/E 160.28
  • P/S 1.19
  • P/B 1.79
  • EPS 4.12
  • Cash ROIC 8.89%
  • Cash Ratio 0.72
  • Dividend 9.8 / 1.48%
  • Avg. Vol. 33,403.00
  • Shares 7.38M
  • Market Cap. 4.875B

Company Description

The Washington Post Company, together with its subsidiaries, operates as a diversified education and media company in the United States and internationally. It provides a range of educational services, including post-secondary education, professional training, test preparation, and K12 services for individuals, schools, and businesses. The company also offers online postsecondary and career progra... more


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

News

There is no news available at this time.
Growth Rate Assumed by Market

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

$660.34 Current Price

$522.06 Growth Price (DCF)

Overvalued by 20.94%


Growth Rate Assumed by Market: 16.52%


Future Free Cash Flow Growth Rate: 1.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$413.89 Stability Price (EPV)

Overvalued by 37.32%


Discount Rate: 15.0%

$676.25 Book Price

Fairly valued


Poor Cash Return on Invested Capital over the past 5 years

WPO has been unable to consistently generate sufficient returns from 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.

WPO has only created $8.89 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20072008200920102011
Free Cash Flow 291.18M 246.84M 395.24M 450.00M 176.91M
divided by
Invested Capital 4.62B 3.32B 3.33B 3.34B 3.30B
Cash ROIC 6.31% 7.44% 11.85% 13.48% 5.36%

Poor Return on Equity over the past 5 years

WPO has shown an inability to deliver strong results for shareholders. This could be due to poor management, WPO operating in a highly competitive industry, or having a weak business in general.

WPO has only generated $5.87 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20072008200920102011
Net Income 288.61M 65.72M 92.77M 306.82M 121.33M
divided by
Stockholders' Equity 3.46B 2.86B 2.94B 2.81B 2.60B
Return on Equity 8.34% 2.30% 3.16% 10.90% 4.66%

Excellent Business Performance over the past 10 years

WPO has been able to maintain profitability in good times and bad. This could mean WPO 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.

WPO has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Free Cash Flow 344.47M 212.13M 357.09M 284.42M 310.73M 291.18M 246.84M 395.24M 450.00M 176.91M

Good Balance Sheet

WPO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Cash 30.52M 90.06M 268.70M 283.46M 377.07M 373.14M 747.85M 862.67M 811.49M 719.77M
Current Assets 382.96M 495.84M 754.37M 818.33M 934.83M 994.97M 1.35B 1.39B 1.36B 1.25B
Total Assets 3.58B 3.90B 4.32B 4.58B 5.38B 6.00B 5.16B 5.19B 5.16B 5.02B
Current Liabilities 736.11M 711.87M 688.16M 694.72M 803.20M 1.01B 1.09B 989.58M 1.01B 995.56M
Total Liabilities 1.75B 1.83B 1.90B 1.95B 2.22B 2.54B 2.30B 2.25B 2.34B 2.42B
Stockholder' Equity 1.84B 2.07B 2.41B 2.64B 3.16B 3.46B 2.86B 2.94B 2.81B 2.60B
Current Ratio 0.52 0.70 1.10 1.18 1.16 0.98 1.24 1.40 1.35 1.25
TL-to-TA 0.49 0.47 0.44 0.42 0.41 0.42 0.45 0.43 0.45 0.48

Low or No Reinvestment of Profits over the past 10 years

WPO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to WPO 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 December
2002200320042005200620072008200920102011
Retained Earnings 3.18B 3.36B 3.63B 3.87B 4.12B 4.33B 4.31B 4.32B 4.52B 4.56B
Retained Earnings Growth - 5.81% 7.87% 6.68% 6.42% 5.09% -0.38% 0.26% 4.53% 0.92%

Competitive Industry over the past 10 years

WPO is likely operating in an industry with medium to low barriers to entry. This may mean that WPO 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 WPO invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.40 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Net Income 216.37M 241.09M 332.73M 314.34M 329.53M 288.61M 65.72M 92.77M 306.82M 121.33M
divided by
Revenue 2.58B 2.84B 3.30B 3.55B 3.90B 4.18B 4.46B 4.57B 4.72B 4.21B
Net Profit Margin 8.37% 8.49% 10.08% 8.85% 8.44% 6.90% 1.47% 2.03% 6.50% 2.88%

Strong Pricing Power over the past 10 years

WPO 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.

$55.95 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Gross Profit 1.21B 1.29B 1.58B 1.64B 1.86B 2.30B 2.44B 2.57B 2.80B 4.21B
divided by
Revenue 2.58B 2.84B 3.30B 3.55B 3.90B 4.18B 4.46B 4.57B 4.72B 4.21B
Gross Margin 46.99% 45.43% 47.97% 46.27% 47.70% 54.96% 54.64% 56.17% 59.36% 100.00%

High Capital Intensity over the past 10 years

WPO 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.

142.20% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Capital Expenditure 152.99M 125.59M 204.63M 238.35M 284.02M 290.01M 288.92M 257.76M 243.71M 216.38M
divided by
Net Income 216.37M 241.09M 332.73M 314.34M 329.53M 288.61M 65.72M 92.77M 306.82M 121.33M
Capital Expenditure Ratio 70.71% 52.09% 61.50% 75.82% 86.19% 100.49% 439.61% 277.83% 79.43% 178.34%

Very Strong Dividend History over the past 10 years

WPO has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests WPO 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 December
2002200320042005200620072008200920102011
Dividend Paid 54.26M 56.29M 67.92M 71.98M 75.90M 79.02M 82.16M 81.77M 82.09M 75.49M
divided by
Shares Outstanding 9.52M 9.56M 9.59M 9.62M 9.60M 9.53M 9.43M 9.39M 8.93M 7.91M
Dividend Paid Per Share 5.70 5.89 7.08 7.49 7.90 8.29 8.71 8.71 9.19 9.55
Price at Year End 638.02 702.12 885.08 686.89 676.42 734.91 357.47 421.65 425.30 374.49
Dividend Yield 0.89% 0.84% 0.80% 1.09% 1.17% 1.13% 2.44% 2.06% 2.16% 2.55%

Strong History of Stock Buybacks over the past 10 years

WPO 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 December
2002200320042005200620072008200920102011
Shares Outstanding 9.52M 9.56M 9.59M 9.62M 9.60M 9.53M 9.43M 9.39M 8.93M 7.91M
Stock Bought Back - -0.34% -0.36% -0.26% 0.11% 0.80% 1.04% 0.40% 5.16% 12.98%
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