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Value Line (VALU)
NASDAQ:VALU
US Market

Value Line (VALU) AI Stock Analysis

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Value Line

(NASDAQ:VALU)

Rating:70Outperform
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 (VALU) vs. SPDR S&P 500 ETF (SPY)

Value Line Business Overview & Revenue Model

Company DescriptionValue 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 MoneyValue 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
75
Positive
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
80
Positive
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
70
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
35.70M37.49M39.70M40.52M40.39M40.30M
Gross Profit
19.90M22.64M24.49M23.20M21.53M22.11M
EBIT
6.64M9.14M11.47M10.80M2.25M9.09M
EBITDA
7.29M10.49M12.82M12.14M8.83M9.36M
Net Income Common Stockholders
21.52M19.02M18.07M23.82M23.28M14.94M
Balance SheetCash, Cash Equivalents and Short-Term Investments
75.79M68.34M62.06M57.83M45.35M34.16M
Total Assets
143.56M136.03M131.08M128.74M121.14M109.73M
Total Debt
3.89M4.78M6.13M7.37M10.79M11.75M
Net Debt
-22.93M394.00K-1.46M-22.34M-8.38M6.79M
Total Liabilities
44.60M45.24M47.40M49.10M54.12M56.19M
Stockholders Equity
98.95M90.79M83.67M79.64M67.01M53.54M
Cash FlowFree Cash Flow
18.27M17.86M18.04M24.64M16.23M13.74M
Operating Cash Flow
18.47M17.93M18.18M24.65M16.41M13.74M
Investing Cash Flow
14.15M-10.05M-26.12M-3.39M7.38M-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 Price37.59
Price Trends
50DMA
39.24
Negative
100DMA
39.54
Negative
200DMA
43.65
Negative
Market Momentum
MACD
-0.35
Positive
RSI
41.56
Neutral
STOCH
18.63
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 Risk Analysis

Value Line disclosed 17 risk factors in its most recent earnings report. Value Line reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Value Line Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$157.12B40.2211.68%0.73%12.98%42.72%
75
Outperform
$13.10B34.4325.68%0.55%10.11%79.71%
71
Outperform
$43.86B38.79-117.99%1.20%11.67%-0.89%
FDFDS
70
Outperform
$16.49B30.8828.12%0.97%4.66%11.15%
70
Outperform
$365.25M16.4522.87%3.16%-6.56%17.95%
64
Neutral
$12.77B9.777.59%16985.66%12.31%-7.69%
DNDNB
57
Neutral
$4.03B-0.64%2.21%2.52%42.27%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VALU
Value Line
37.59
0.04
0.11%
FDS
Factset Research
431.48
25.34
6.24%
SPGI
S&P Global
515.76
90.11
21.17%
MORN
Morningstar
306.66
20.37
7.12%
MSCI
MSCI
564.07
78.13
16.08%
DNB
Dun & Bradstreet Holdings
9.01
-0.36
-3.84%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.