Value Line (VALU) AI Stock Analysis

• Market Cap: $374.00M
• Dividend Yield: 3.27%
• Average Volume (3M): 2.27K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.39
• 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: 1,814
• 30 Day Avg. Volume: 2,275
• PEG Ratio: -5.57
• Price to Book (P/B): 3.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.53
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.29
• Enterprise Value/Gross Profit: 16.78
• Enterprise Value/Ebitda: 9.34
• 1Y Price Target: $44.00
• Price Target Upside: 10.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $44.00 ▲(10.75%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 demonstrates strong profitability and a robust balance sheet, with excellent equity ratios and cost management. However, declining revenue growth poses a challenge to future financial performance.

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
EBITDA	7.29M	10.49M	12.82M	12.14M	8.83M	9.36M
Net Income	21.52M	19.02M	18.07M	23.82M	23.28M	14.94M
Balance Sheet
Total Assets	105.66M	136.03M	131.08M	128.74M	121.14M	109.73M
Cash, Cash Equivalents and Short-Term Investments	29.40M	68.34M	62.06M	57.83M	45.35M	34.16M
Total Debt	9.64M	4.78M	6.13M	7.37M	10.79M	11.75M
Total Liabilities	51.32M	45.24M	47.40M	49.10M	54.12M	56.19M
Stockholders Equity	54.35M	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: Positive
• Last Price: 39.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VALU, the sentiment is Positive. The current price of 39.73 is above the 20-day moving average (MA) of 38.40, above the 50-day MA of 38.97, and below the 200-day MA of 43.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.08 is Neutral, neither overbought nor oversold. The STOCH value of 31.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VALU.

Value Line Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPGI	80 Outperform	$162.50B	41.60	11.68%	0.72%	12.98%	42.72%
FDS	77 Outperform	$16.93B	32.48	26.35%	0.98%	5.07%	4.19%
MORN	77 Outperform	$12.63B	33.57	25.68%	0.61%	10.11%	79.71%
MSCI	72 Outperform	$45.02B	39.93	-117.99%	1.24%	11.67%	-0.89%
VALU	70 Outperform	$374.00M	17.39	22.87%	3.27%	-6.56%	17.95%
Sector *	67 Neutral	$16.92B	11.85	9.77%	3.75%	12.07%	-8.35%
DNB	62 Neutral	$4.07B	―	-0.64%	2.19%	2.52%	42.27%