Skillsoft Corp. (NYSE: SKIL)

Sector: Consumer Defensive Industry: Education & Training Services CIK: 0001774675
Market Cap 45.73 Mn
P/B 11.47
P/E -0.34
P/S 0.09
ROIC (Qtr) -11.19
Div Yield % 0.00
Rev 1y % (Qtr) -6.00
Total Debt (Qtr) 577.59 Mn
Debt/Equity (Qtr) 144.83
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About

Skillsoft Corp., known by its stock symbol SKIL, operates in the learning and development industry, providing transformative learning experiences that empower organizations and individuals to grow together. The company's primary business activities involve offering a comprehensive, enterprise-wide approach to skills development, covering leadership and business skills, technology skills, and compliance and risk management skills. Skillsoft's headquarters are in the United States, and it serves a global customer base, including approximately 60%...

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Investment thesis

Bull case

  • Healthy cash reserves of 77.54M provide 10.47x coverage of short-term debt 7.40M, demonstrating strong liquidity position and minimal refinancing risk.
  • Cash reserves of 77.54M provide comfortable 2.07x coverage of tax obligations 37.39M, showing strong fiscal management.
  • R&D investment of 57.53M represents significant 0.55x of receivables 103.91M, indicating innovation-driven growth.
  • Strong R&D investment of 57.53M at 3x of capex 19.17M shows balanced investment in innovation and infrastructure.
  • Cash position of 77.54M fully covers payables of 20.92M by 3.71x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of 12.35M barely covers its investment activities of (19.17M), with a coverage ratio of -0.64, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (19.17M) provide weak support for R&D spending of 57.53M, which is -0.33x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 12.35M provides insufficient coverage of deferred revenue obligations of 197.18M, which is 0.06x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 12.35M shows concerning coverage of stock compensation expenses of 20.89M, with a 0.59 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.82M) provides weak coverage of capital expenditures of 19.17M, with a -0.36 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Education & Training Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EDU New Oriental Education & Technology Group Inc. 9.35 Bn 24.58 1.82 0.78 Bn
2 TAL TAL Education Group 6.18 Bn 22.22 2.20 0.38 Bn
3 GHC Graham Holdings Co 5.47 Bn 12.27 1.91 1.17 Bn
4 LAUR Laureate Education, Inc. 5.20 Bn 25.55 3.29 0.44 Bn
5 LOPE Grand Canyon Education, Inc. 4.62 Bn 21.85 4.23 0.11 Bn
6 LRN Stride, Inc. 3.61 Bn 11.32 1.43 0.56 Bn
7 ATGE Covista Inc. 3.46 Bn 13.66 1.83 0.73 Bn
8 PRDO PERDOCEO EDUCATION Corp 2.84 Bn 42.39 1.73 0.06 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 0.71
EV to Cash from Ops. EV/CFO 42.19 6.80
EV to Debt EV to Debt 0.90 11.15
EV to EBIT EV/EBIT -6.10 112.78
EV to EBITDA EV/EBITDA -12.62 6.48
EV to Free Cash Flow [EV/FCF] EV/FCF -76.35 5.57
EV to Market Cap EV to Market Cap 11.39 582,173.64
EV to Revenue EV/Rev 1.01 1.74
Price to Book Value [P/B] P/B 11.47 -3.80
Price to Earnings [P/E] P/E -0.34 -1.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 11.73
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.69
Interest Coverage Int. cover (Qtr) -1.44 53.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 3.78 -82.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -23.84 25.11
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 70.99 -39.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 81.77 -34.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 69.94 -40.70
EBT Growth (1y) % EBT 1y % (Qtr) 58.63 -52.53
EPS Growth (1y) % EPS 1y % (Qtr) 61.88 -29.51
FCF Growth (1y) % FCF 1y % (Qtr) -280.03 -36.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.38 -3.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.57 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.28 0.73
Current Ratio Curr Ratio (Qtr) 0.85 1.63
Debt to Equity Ratio Debt/Equity (Qtr) 144.83 3.83
Interest Cover Ratio Int Coverage (Qtr) -1.44 53.05
Times Interest Earned Times Interest Earned (Qtr) -1.44 53.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.70 -30.62
EBIT Margin % EBIT Margin % (Qtr) -16.55 -82.13
EBT Margin % EBT Margin % (Qtr) -28.01 -47.07
Gross Margin % Gross Margin % (Qtr) 74.00 50.48
Net Profit Margin % Net Margin % (Qtr) -26.00 -48.61