Value Line Inc (VALU) stock analysis

P/E below its 5-year median

Value Line's P/E of 19.7 is below its own 5-year median of 20.6.

P/E below the industry

Value Line's P/E of 19.7 is below the Services Allied with the Exchange of Securities median of 21.0.

EV/EBITDA above its 5-year median

Value Line's EV/EBITDA of 73.9 is above its 5-year median of 39.6.

P/B below the industry

Value Line's price-to-book of 3.57 is below the Services Allied with the Exchange of Securities median of 3.70.

Trading above fair value

The share price of $41.50 is above our fair value estimate of $32.26.

Margin of safety under 20%

The price is 28.6% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -5.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth not accelerating

Net income grew -6.7% over the last twelve months, against a 5-year average of -1.5% a year.

Growing slower than the industry

Revenue grew -5.5% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 18.7% over the last twelve months and averaged 23.8% over five years.

Return on capital under 10%

Return on invested capital was 3.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Value Line's return on equity of 18.7% is above the Services Allied with the Exchange of Securities median of 15.7%.

Earnings shrank over 5 years

Net income shrank 1.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 60.3% over the last twelve months, against a 5-year average of 55.7%.

Net margin above the industry

Value Line's net margin of 60.3% is above the Services Allied with the Exchange of Securities median of 16.3%.

No debt

Value Line has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 4.09 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.34; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Value Line paid dividends worth 3.3% of the share price over the last twelve months.

Yield below Treasuries

The 3.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Value Line yields 3.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 62.8% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.