Value Line (VALU) AI Stock Analysis

• Market Cap: $346.80M
• Dividend Yield: 3.26%
• Average Volume (3M): 8.43K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.18
• Revenue Growth: -6.56%
• EPS Growth: 17.95%
• Country: US
• Employees: 122
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.28
• Shares Outstanding: 9,413,562
• 10 Day Avg. Volume: 9,918
• 30 Day Avg. Volume: 8,425
• PEG Ratio: 0.90
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.01
• Price to Cash Flow (P/CF): 13.00
• P/FCF Ratio: 13.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Value Line's strong financial performance, characterized by excellent profitability and a solid balance sheet, is a key strength. However, declining revenue growth and mixed technical indicators present challenges. The stock appears fairly valued, with a reasonable P/E ratio and a good dividend yield offering.

Value Line Business Overview & Revenue Model

Company Description

Value Line, Inc. (VALU) is a leading financial services company that provides investment-related information, research, and analytical tools to individual and institutional investors. The company operates primarily in the publishing and financial services sectors, offering a range of products that include investment research, data, and proprietary rankings. Value Line is widely recognized for its flagship publication, The Value Line Investment Survey, which provides comprehensive analysis and insights into the stock market.

How the Company Makes Money

Value Line generates revenue primarily through subscriptions to its investment research products and services. The company offers a variety of subscription-based products, including The Value Line Investment Survey, Value Line Select, and Value Line Special Situations Service, among others. These subscriptions are available to both individual investors and institutional clients, such as asset managers and financial advisors. In addition to subscription revenue, Value Line also earns income from providing investment management services through its subsidiary, Value Line Funds. This includes managing mutual funds and other investment portfolios, with fees based on assets under management. The company's robust database and proprietary ranking system are key differentiators that contribute to its competitive position and revenue generation.

Value Line Financial Statement Overview

Summary

Value Line is financially sound with strong profitability and an excellent balance sheet. Despite these strengths, the decline in revenue growth poses a challenge that could affect future performance. Maintaining profitability and managing revenue growth will be crucial for sustaining its financial health.

Income Statement

Value Line's TTM shows a stable gross profit margin at 55.8% with a strong net profit margin of 60.3%, indicating excellent profitability. However, the revenue has been declining over the past three years, impacting growth prospects. EBIT and EBITDA margins are solid at 18.6% and 20.4%, respectively, reflecting efficient cost management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.04, highlighting minimal leverage. The equity ratio stands at 151.6%, indicating a robust equity position. Return on equity is impressive at 21.7%, demonstrating effective use of shareholders' capital. Overall, the balance sheet portrays financial stability.

Cash Flow

Value Line's operating cash flow to net income ratio is 0.86, showing healthy cash generation. Free cash flow has grown modestly, though the free cash flow to net income ratio is slightly lower at 0.86. Despite strong cash flows, the decline in revenue could pose risks to sustaining future cash generation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
35.70M	37.49M	39.70M	40.52M	40.39M	40.30M
	Gross Profit
19.90M	22.64M	24.49M	23.20M	21.53M	22.11M
	EBIT
6.64M	9.14M	11.47M	10.80M	2.25M	9.09M
	EBITDA
7.29M	10.55M	12.82M	12.14M	8.83M	9.36M
	Net Income Common Stockholders
21.52M	19.02M	18.07M	23.82M	23.28M	14.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.10M	68.34M	62.06M	57.83M	45.35M	34.16M
	Total Assets
57.80M	136.03M	131.08M	128.74M	121.14M	109.73M
	Total Debt
0.00	4.78M	6.13M	7.37M	10.79M	11.75M
	Net Debt
-500.00K	394.00K	-1.46M	-22.34M	-8.38M	6.79M
	Total Liabilities
54.90M	45.24M	47.40M	49.10M	54.12M	56.19M
	Stockholders Equity
2.90M	90.79M	83.67M	79.64M	67.01M	53.54M
Cash Flow		Free Cash Flow
18.42M	17.86M	18.04M	24.64M	16.23M	13.74M
	Operating Cash Flow
18.47M	17.93M	18.18M	24.65M	16.41M	13.74M
	Investing Cash Flow
14.15M	-10.05M	-26.12M	-3.39M	7.38M	-8.66M
	Financing Cash Flow
-11.58M	-11.08M	-14.18M	-10.89M	-9.57M	-6.63M

Value Line Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VALU, the sentiment is Negative. The current price of 36.84 is below the 20-day moving average (MA) of 38.91, below the 50-day MA of 38.78, and below the 200-day MA of 44.75, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 56.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VALU.

Value Line Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	74 Outperform	$141.70B	36.56	11.44%	0.82%	13.68%	49.90%
MSCI	73 Outperform	$39.38B	36.13	-117.99%	1.30%	12.94%	-2.54%
MORN	70 Outperform	$11.50B	31.32	25.11%	0.62%	11.60%	161.17%
VALU	68 Neutral	$346.80M	16.13	22.87%	3.26%	-6.56%	17.95%
Sector *	63 Neutral	$12.86B	9.19	9.16%	4.78%	16.31%	-8.97%
IHS	56 Neutral	$1.57B	―	493.63%	―	-19.49%	16.08%