John Wiley & Sons Inc. Common Stock (WLYB)

FairStock Score: 68/100 — STEADY

Key Financials

Strengths

• Generates $159 million in annual free cash flow (7.5% yield on market cap)
• High return on equity of 21.5% demonstrating efficient capital deployment
• Attractive 3.5% dividend yield providing steady income returns

Concerns

• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

John Wiley & Sons Inc. Common Stock is a small-cap communication services company valued at $2.1 billion. The business generates $1.7 billion in annual revenue with a 1.8% net margin and $159 million in free cash flow. From a quality standpoint, John shows distressed Altman Z-Score of 1.7 warrants caution and strong 22% ROE. On valuation, the stock is attractively valued at 14.4x earnings, with trades above its Graham Number with a negative 35% margin. Growth dynamics show revenue growing at 1.3% and profit growth of 229.3%. The 3.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 68/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates John's consistent 22% ROE at just 14x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $159 million in annual free cash flow (7.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer