Value Line (VALU) AI Stock Analysis

• Market Cap: $365.25M
• Dividend Yield: 3.16%
• Average Volume (3M): 3.66K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.34
• Revenue Growth: -6.56%
• EPS Growth: 17.95%
• Country: US
• Employees: 122
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 2.28
• Shares Outstanding: 9,413,562
• 10 Day Avg. Volume: 2,440
• 30 Day Avg. Volume: 3,658
• PEG Ratio: -5.78
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.27
• 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

• Rating: 70 Outperform
• Price Target: $44.00 ▲(17.05%Upside)

Value Line's solid financial footing and reasonable valuation are tempered by concerns over revenue growth and a neutral technical setup. The stock's strong balance sheet and profitability support its score, but clarity on revenue trends is crucial for future performance.

Value Line Business Overview & Revenue Model

Company Description

Value Line, Inc., together with its subsidiaries, produces and sells investment periodicals and related publications primarily in the United States. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), and options. The company's research services include 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 that provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select, Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, www.valueline.com; The Value Line Research Center online platform; and investment analysis software, such as The Value Line Investment Analyzer, which includes data sorting and filtering tools. In addition, the company offers current and historical financial databases comprising DataFile, estimates and projections, and mutual funds; and copyright products, which include unit investment trusts, variable annuities, managed accounts, and EFTs. Further, it places advertising on behalf of the company's publications; and provides subscription fulfillment and subscriber relation services. The company serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. Value Line, Inc. was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co, Inc.

How the Company Makes Money

Value Line primarily generates revenue through the sale of its subscription-based investment research publications and digital platforms. The company's flagship product, the Value Line Investment Survey, is a key revenue stream, offering detailed stock analysis and investment recommendations. Additionally, Value Line earns money by providing institutional research services and licensing its proprietary data and analytics to third-party platforms. The company also benefits from partnerships with financial institutions and educational entities that rely on its research for investment strategies and financial literacy programs.

Value Line Financial Statement Overview

Summary

Value Line is financially sound with strong profitability and an excellent balance sheet. The company has a robust equity position and impressive return on equity. However, 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	10.49M	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
75.79M	68.34M	62.06M	57.83M	45.35M	34.16M
	Total Assets
143.56M	136.03M	131.08M	128.74M	121.14M	109.73M
	Total Debt
3.89M	4.78M	6.13M	7.37M	10.79M	11.75M
	Net Debt
-22.93M	394.00K	-1.46M	-22.34M	-8.38M	6.79M
	Total Liabilities
44.60M	45.24M	47.40M	49.10M	54.12M	56.19M
	Stockholders Equity
98.95M	90.79M	83.67M	79.64M	67.01M	53.54M
Cash Flow		Free Cash Flow
18.27M	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: 37.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 37.59 is below the 20-day moving average (MA) of 39.20, below the 50-day MA of 39.24, and below the 200-day MA of 43.65, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 18.63 is Positive, 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	76 Outperform	$157.12B	40.22	11.68%	0.73%	12.98%	42.72%
MORN	75 Outperform	$13.10B	34.43	25.68%	0.55%	10.11%	79.71%
MSCI	71 Outperform	$43.86B	38.79	-117.99%	1.20%	11.67%	-0.89%
FDS	70 Outperform	$16.49B	30.88	28.12%	0.97%	4.66%	11.15%
VALU	70 Outperform	$365.25M	16.45	22.87%	3.16%	-6.56%	17.95%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.31%	-7.69%
DNB	57 Neutral	$4.03B	―	-0.64%	2.21%	2.52%	42.27%