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John Wiley Sons Cl (WLY)
:WLY

John Wiley Sons Cl A (WLY) AI Stock Analysis

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John Wiley Sons Cl A

(NYSE:WLY)

Rating:74Outperform
Price Target:
$50.00
▲(15.21%Upside)
John Wiley Sons Cl A demonstrates a robust recovery path, driven by strong cash flow and strategic improvements in profitability. Positive technical indicators and strategic corporate actions enhance the outlook. However, high valuation and revenue challenges require careful monitoring.

John Wiley Sons Cl A (WLY) vs. SPDR S&P 500 ETF (SPY)

John Wiley Sons Cl A Business Overview & Revenue Model

Company DescriptionJohn Wiley & Sons, Inc. operates as a research and education company worldwide. The company operates through three segments: Research Publishing & Platforms, Academic & Professional Learning, and Education Services. The Research Publishing & Platforms segment offers scientific, technical, medical, and scholarly journals, as well as related content and services to learned societies, individual researchers, other professionals, and academic, corporate, and government libraries. This segment also publishes physical sciences and engineering, health sciences, social sciences, and humanities and life sciences journals; and provides a publishing software and service for scholarly and professional societies, and publishers to deliver, host, enhance, market, and manage their content on the web through the Literatum platform. It sells and distributes its products through various channels, including research libraries and library consortia, and independent subscription agents, as well as directly to professional society members, bookstores, online booksellers, and other customers. The Academic & Professional Learning segment provides education publishing and professional learning products and services, including scientific, professional, and education print and digital books, digital courseware, and test preparation services to libraries, corporations, students, professionals, and researchers, as well as learning, development, and assessment services for businesses and professionals. This segment distributes its products through chain and online booksellers, libraries, colleges and universities, corporations, direct to consumer, websites, distributor networks, and other online applications. The Education Services segment provides online program management services for higher education institutions and talent development services including placement and training for professionals and businesses. The company was founded in 1807 and is headquartered in Hoboken, New Jersey.
How the Company Makes MoneyJohn Wiley & Sons generates revenue through several key streams. The Research Publishing & Platforms segment earns money by publishing and distributing scientific journals, which are often sold to academic institutions and libraries through subscription models. The Academic & Professional Learning segment generates income through the sale of educational materials, including textbooks, online courses, and professional development content. Additionally, the Education Services segment provides digital learning solutions and services, such as test preparation and student support, often under long-term contracts with educational institutions. Wiley also benefits from strategic partnerships with universities and professional organizations, enhancing its content distribution and expanding its market reach.

John Wiley Sons Cl A Earnings Call Summary

Earnings Call Date:Jun 17, 2025
(Q4-2025)
|
% Change Since: 17.20%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in AI licensing revenue, margin improvement, and cash flow growth. The successful divestiture of university services also stood out as a positive development. However, challenges were noted in the retail channel, and the future of AI revenue remains uncertain. Overall, the company's strong performance and strategic initiatives suggest a positive outlook, despite some areas of concern.
Q4-2025 Updates
Positive Updates
Record AI Licensing Revenue
Wiley reported a total of $40 million in AI licensing revenue for fiscal 2025, demonstrating strong demand in the corporate sector.
Significant Margin Improvements
Wiley achieved a 300 basis point improvement in adjusted operating margin and a 120 basis point improvement in adjusted EBITDA margin.
Strong Free Cash Flow Growth
Free cash flow increased by 10% to $126 million, with a reaffirmed target of $200 million for fiscal 2026.
Successful University Services Divestiture
The company secured $120 million in cash proceeds from the divestiture of its university services, which will be used to reduce debt.
Growth in Research and Learning Segments
Wiley saw 19% growth in submissions and 8% growth in output in the research segment, with learning revenue driven by AI licensing and inclusive access.
Strong Recurring Revenue Models
Recurring revenue models showed steady growth, with significant advances in Open Access and a strong renewal season across regions.
Negative Updates
Challenges in Retail Channel
The Learning segment experienced a 5% revenue decline in Q4 due to softness in the retail channel.
Uncertain AI Revenue Projections
Future projections for AI revenue remain uncertain due to the rapidly evolving nature of the market.
Restructuring Charges
Wiley incurred a $12 million restructuring charge in Q4 as part of its ongoing efficiency programs.
Softness in Professional Publishing
The Professional Publishing market faced challenges due to retail channel softness.
Company Guidance
In the recent earnings call for John Wiley & Sons, the company provided comprehensive guidance for fiscal 2025, highlighting several key metrics. Wiley reported a revenue growth of 3% and a 300 basis point improvement in adjusted operating margin, with free cash flow increasing by 10% to $126 million. The company achieved $40 million in AI licensing revenue, contributing to strong growth in both core and emerging market segments. Notably, the adjusted EBITDA margin improved by 120 basis points, reflecting strategic focus on margin expansion. The company also highlighted a 19% growth in research submissions and an 8% increase in output. Looking forward, Wiley reaffirmed its fiscal 2026 free cash flow target of $200 million and expects revenue growth in the low to mid-single digits, with adjusted EPS projected between $3.90 and $4.35. The company continues to capitalize on AI opportunities, securing a third major customer for LLM model training, and anticipates further growth in vertical-specific subscription models.

John Wiley Sons Cl A Financial Statement Overview

Summary
John Wiley Sons Cl A shows mixed financial performance. Improved profitability and operational efficiency are evident with better EBIT and EBITDA margins. However, declining revenue and significant leverage remain concerns. Strong cash flow generation allows for strategic investments and debt management.
Income Statement
72
Positive
The income statement reveals a mixed performance for John Wiley Sons Cl A. The gross profit margin remains robust at approximately 71.2% in 2025, reflecting strong cost management. However, the net profit margin has improved to 5% from a negative margin in 2024, indicating a recovery in profitability. Revenue has declined over the years, but recent improvements in EBIT and EBITDA margins suggest operational efficiencies. The revenue growth rate has been negative, indicating a need for growth strategies.
Balance Sheet
65
Positive
The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 1.2 in 2025, which is stable compared to previous years. The equity ratio stands at 27.9%, indicating a moderate reliance on equity financing. Return on equity (ROE) has improved to 11.2% from negative in previous years, showing enhanced profitability. However, the company still has a significant debt burden, which could pose risks if not managed carefully.
Cash Flow
78
Positive
The cash flow statement highlights strong operational cash flow with a favorable operating cash flow to net income ratio of approximately 2.4 in 2025, showing efficient cash generation. Free cash flow has grown significantly by 33.3% from 2024 to 2025, indicating improved cash management. The free cash flow to net income ratio is 1.7, reflecting healthy cash flow relative to earnings, which could support future growth initiatives and debt reduction.
BreakdownJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue1.68B1.87B2.02B2.08B1.94B
Gross Profit1.19B1.29B1.33B1.38B1.32B
EBITDA343.63M53.28M293.60M445.63M395.88M
Net Income84.16M-200.32M17.23M148.31M148.26M
Balance Sheet
Total Assets2.69B2.73B3.11B3.36B3.45B
Cash, Cash Equivalents and Short-Term Investments85.88M83.40M106.71M100.40M93.80M
Total Debt899.20M887.28M883.50M940.14M989.86M
Total Liabilities1.94B1.99B2.06B2.22B2.36B
Stockholders Equity752.21M739.72M1.05B1.14B1.09B
Cash Flow
Free Cash Flow141.12M105.88M170.38M217.40M226.71M
Operating Cash Flow202.59M207.64M277.07M339.10M359.92M
Investing Cash Flow-94.02M-106.64M-98.40M-194.02M-433.15M
Financing Cash Flow-125.33M-107.22M-168.57M-131.64M-47.09M

John Wiley Sons Cl A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.40
Price Trends
50DMA
42.05
Positive
100DMA
42.18
Positive
200DMA
44.52
Negative
Market Momentum
MACD
0.91
Negative
RSI
57.07
Neutral
STOCH
56.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLY, the sentiment is Positive. The current price of 43.4 is above the 20-day moving average (MA) of 41.17, above the 50-day MA of 42.05, and below the 200-day MA of 44.52, indicating a neutral trend. The MACD of 0.91 indicates Negative momentum. The RSI at 57.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WLY.

John Wiley Sons Cl A Risk Analysis

John Wiley Sons Cl A disclosed 30 risk factors in its most recent earnings report. John Wiley Sons Cl A reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

John Wiley Sons Cl A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NYNYT
76
Outperform
$9.22B30.8316.68%1.27%6.85%21.26%
WLWLY
74
Outperform
$2.32B28.2811.28%3.25%-10.43%
73
Outperform
$98.05B40.7056.34%2.12%5.86%13.13%
PSPSO
72
Outperform
$9.58B18.3310.99%2.84%-0.59%24.06%
ZDZD
71
Outperform
$1.37B20.354.12%3.24%36.80%
66
Neutral
$578.75M36.391.92%3.68%-3.10%-58.47%
55
Neutral
HK$64.51B-1.63-1.91%7.22%-4.22%-14.17%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WLY
John Wiley Sons Cl A
43.40
1.08
2.55%
ZD
Ziff Davis
32.55
-20.52
-38.67%
NYT
New York Times
56.54
4.84
9.36%
PSO
Pearson
14.74
2.13
16.89%
SCHL
Scholastic
21.93
-11.71
-34.81%
RELX
Relx
52.64
7.13
15.67%

John Wiley Sons Cl A Corporate Events

Executive/Board ChangesStock BuybackDividendsFinancial Disclosures
John Wiley & Sons Elects New Board Member
Positive
Jun 30, 2025

On June 30, 2025, John Wiley & Sons announced the election of Katya D. Andresen to its Board of Directors, effective June 27, 2025, increasing the Board size from nine to ten members. Ms. Andresen is recognized as an independent director under NYSE rules and is expected to join the Executive Compensation and Development Committee. Additionally, Wiley declared a quarterly cash dividend of $0.355 per share, marking its 32nd consecutive annual increase, and announced a $250 million share repurchase authorization, up from $200 million in 2020. The company reported strong fiscal 2025 earnings, with significant growth in revenue and adjusted EBITDA margin, and provided a positive growth outlook for fiscal 2026.

Executive/Board ChangesBusiness Operations and Strategy
Wiley Appoints Craig Albright as New CFO
Positive
Jun 23, 2025

On June 23, 2025, Wiley announced the appointment of Craig Albright as Executive Vice President and Chief Financial Officer, effective June 26, 2025. Albright, with over 30 years of global leadership experience, previously held significant roles at Xerox, where he drove growth and improved operational efficiency. His appointment aligns with Wiley’s strategic objectives to capitalize on emerging market opportunities, including AI licensing and data analytics, while continuing to expand margins and cash flow.

M&A TransactionsStock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Wiley Reports Strong Fiscal 2025 Results and AI Growth
Positive
Jun 17, 2025

On June 17, 2025, Wiley reported its fiscal 2025 results, highlighting significant achievements such as exceeding adjusted EPS guidance, expanding profit margins, and reaffirming fiscal 2026 growth targets. The company realized $40 million in AI licensing revenue, compared to $23 million in the previous year, and increased share repurchases by 34%, raising dividends for the 31st consecutive year. Wiley’s fiscal year saw a 3% increase in adjusted revenue, a 29% rise in adjusted operating income, and a 10% growth in free cash flow, driven by strong performance in its Research and Learning segments. The company also completed divestitures, receiving $120 million in cash proceeds, and continued its focus on AI licensing and partnerships, science analytics, and knowledge services.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 01, 2025