Value Line Inc (VALU) Stock Analysis and Metrics

Sector: Financial Services Industry: Financial Data & Stock Exchanges CIK: 0000717720

Market Cap 369.72 Mn

P/B 3.50

P/E 17.39

P/S 10.71

ROIC (Qtr) 3.64

Div Yield % 3.23

Rev 1y % (Qtr) -3.22

Total Debt (Qtr) 2.94 Mn

Debt/Equity (Qtr) 0.03

About

Value Line Inc., a New York corporation and a prominent name in the investment industry, is renowned for its investment research and analysis offerings. The company, ticker symbol VALU, provides a variety of products and services designed to aid both individual and institutional investors in making informed investment decisions. Value Line's primary business activities revolve around the production of investment periodicals and the provision of research and analysis to third parties for integration into their investment products. The company's...

Value Line Inc., a New York corporation and a prominent name in the investment industry, is renowned for its investment research and analysis offerings. The company, ticker symbol VALU, provides a variety of products and services designed to aid both individual and institutional investors in making informed investment decisions.

Value Line's primary business activities revolve around the production of investment periodicals and the provision of research and analysis to third parties for integration into their investment products. The company's research and analysis are founded on a proprietary ranking system, which evaluates the timeliness, safety, and performance of various investment securities. This system is widely recognized for its effectiveness, setting Value Line apart from its competitors.

The company's product range is diverse, encompassing The Value Line Investment Survey, The Value Line Investment Survey - Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus, among others. These publications offer in-depth research and analysis on an extensive array of investment securities, including stocks, mutual funds, and exchange-traded funds (ETFs). Value Line's research and analysis are accessible in both print and digital formats, with various platforms such as the company's website and mobile app facilitating access.

Value Line's customer base is broad and varied, comprising individual investors, institutional investors, financial professionals, and other investment firms. The company's commitment to accessibility is evident in its provision of research and analysis in multiple formats and languages.

The investment research and analysis segment is Value Line's core business, providing comprehensive research and analysis on a wide range of investment securities. The segment's offerings are available in print and digital formats, enabling investors to make informed investment decisions.

In addition to its research and analysis segment, Value Line manages mutual funds and ETFs, utilizing various investment strategies such as value investing, growth investing, and income investing. The company's funds offer investors a spectrum of investment options, encompassing equity, fixed income, and balanced portfolios.

Value Line's publishing segment is responsible for producing the company's investment periodicals, which offer in-depth research and analysis on a wide range of investment securities.

Within the industry, Value Line holds a strong position due to its reputation for providing high-quality research and analysis. Despite competition from providers such as Morningstar and Thomson Reuters, Value Line maintains a robust market presence, attributable to its unique ranking system and extensive research and analysis capabilities.

Price action

Investment thesis

Bull case

Strong operating cash flow of 20.91M provides robust 7.11x coverage of total debt 2.94M, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 43.61M provide 32.21x coverage of short-term debt 1.35M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 147.91M provides 50.29x coverage of total debt 2.94M, indicating robust asset backing and low credit risk.
Robust free cash flow of 20.74M exceeds capital expenditure of 172000 by 120.58x, indicating strong organic growth funding capability.
Tangible assets of 147.91M provide exceptional 7.28x coverage of deferred revenue 20.33M, showing strong service capability backing.

Bear case

Operating cash flow of 20.91M barely covers its investment activities of 23.66M, with a coverage ratio of 0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 20.91M provides thin coverage of dividend payments of (11.77M) with a -1.78 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Operating cash flow of 20.91M provides insufficient coverage of deferred revenue obligations of 20.33M, which is 1.03x, raising concerns about future service delivery capabilities.
Long-term investments of 61.62M represent a high 21.52x of fixed assets 2.86M, indicating potential overexposure to financial assets versus operational capabilities.
Retained earnings of 119.43M provide limited buffer against comprehensive income items of (62000), which is -1926.23x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Financial Data & Stock Exchanges

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SPGI	S&P Global Inc.	157.13 Bn	37.25	10.47	11.87 Bn
2	CME	Cme Group Inc.	96.82 Bn	26.05	15.13	152.46 Bn
3	ICE	Intercontinental Exchange, Inc.	91.82 Bn	29.04	7.33	19.51 Bn
4	MCO	Moodys Corp /De/	90.39 Bn	40.28	12.05	7.36 Bn
5	COIN	Coinbase Global, Inc.	62.10 Bn	19.30	8.10	7.59 Bn
6	NDAQ	Nasdaq, Inc.	54.56 Bn	33.58	6.68	9.55 Bn
7	MSCI	MSCI Inc.	43.97 Bn	35.94	14.39	5.62 Bn
8	CBOE	Cboe Global Markets, Inc.	25.92 Bn	26.50	5.61	1.57 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	2.29	2.79
EV to Cash from Ops. EV/CFO	16.22	33.08
EV to Debt EV to Debt	115.36	17.54
EV to EBIT EV/EBIT	11.83	18.27
EV to EBITDA EV/EBITDA	50.43	20.66
EV to Free Cash Flow [EV/FCF] EV/FCF	16.36	-39.00
EV to Market Cap EV to Market Cap	0.92	1.08
EV to Revenue EV/Rev	9.83	29.85
Price to Book Value [P/B] P/B	3.50	-0.11
Price to Earnings [P/E] P/E	17.39	23.23

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Div Coverage (Qtr)	1.81	2.12
Dividend Payout Ratio % Div Payout % (Qtr)	56.40	32.37
Dividend per Basic Share Div per Share (Qtr)	1.28	2.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	57.82	26.82
Interest Coverage Interest Coverage	0.00	8.16

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	-21.13	-11.26
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	286.13	21.19
Dividend Growth (1y) % Div 1y % (Qtr)	8.05	1.08
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	-4.43	10.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	-21.98	15.05
EBIT Growth (1y) % EBIT 1y % (Qtr)	-3.13	17.06
EBT Growth (1y) % EBT 1y % (Qtr)	-3.13	21.11
EPS Growth (1y) % EPS 1y % (Qtr)	-3.83	31.00
FCF Growth (1y) % FCF 1y % (Qtr)	4.37	30.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	-6.35	13.67

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	0.23	0.61
Cash Payout Ratio Cash Payout (Qtr)	0.56	0.24
Cash Ratio Cash Ratio (Qtr)	2.09	0.51
Current Ratio Curr Ratio (Qtr)	3.99	1.97
Debt to Equity Ratio Debt/Equity (Qtr)	0.03	0.56
Interest Cover Ratio Interest Cover Ratio	0.00	8.16
Times Interest Earned Times Interest Earned	0.00	8.16

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	86.90	-985.15
EBIT Margin % EBIT Margin % (Qtr)	83.06	-991.90
EBT Margin % EBT Margin % (Qtr)	83.06	-1,071.07
Gross Margin % Gross Margin % (Qtr)	82.30	72.61
Net Profit Margin % Net Margin % (Qtr)	61.60	-1,440.85

Value Line Inc (NASDAQ: VALU)

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Price action

Investment thesis

Bull case

Bear case

Peer comparison

Industry comparisons

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