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1. Company Snapshot

1.a. Company Description

John 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.

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1.b. Last Insights on WLY

Breaking News: John Wiley & Sons Inc reported strong earnings, causing shares to gap up. The company's fiscal third-quarter results were in line with expectations, despite unfavorable market conditions. Executives highlighted momentum in research publishing, growing AI-related revenue, and improving margins and cash flow. President and CEO Matt Kissner led the earnings call. The company's results were better than expected, with shares opening at $33.01, up from the previous close of $30.45. Analysts recommend a hold on the stock.

1.c. Company Highlights

2. John Wiley & Sons' Q3 Earnings: A Strong Showing in Research Publishing and AI Revenue

In the fiscal third quarter, John Wiley & Sons reported revenue in line with expectations, with growth in Research Publishing and Academic offset by moderate declines in Research Solutions and Professional. The company's adjusted operating income, adjusted EPS, and adjusted EBITDA all saw double-digit growth of 22%, 19%, and 12%, respectively. Notably, the actual EPS came out at $1.1, beating estimates of $0.78. The strong EPS performance was accompanied by material margin expansion and cash flow growth, with adjusted operating margin up 280 basis points and operating cash flow nearly doubling to $103,000,000.

Publication Date: Mar -06

📋 Highlights
  • AI Revenue Growth:: Surpassed $42,000,000 in first three quarters, on track for $45-50 million annual target, with $7,000,000 from Q3 alone.
  • Margin Expansion:: Adjusted operating margin rose 280 basis points, adjusted EBITDA increased 250 basis points, and operating cash flow nearly doubled to $103,000,000.
  • Research Publishing Momentum:: Global output up 11%, revenue up 4% excluding AI, with visibility into strong journal renewals and market share gains.
  • Shareholder Returns:: Repurchases doubled to $70,000,000 year-to-date, supported by leverage reduction to 1.7x and free cash flow up $57,000,000 YoY.
  • Strategic Partnerships:: Launched $7,000,000 AI model training contract with a non-U.S. customer and a multiyear partnership with Virtusa for tech transformation.

Segment Performance

Research Publishing performance was impacted by $9,000,000 of AI revenue in the prior-year period, but absent AI revenues, the segment was up over 4%. The company's solid journal licensing renewals combined with continued submissions and output growth give them good visibility and confidence heading into fiscal 2027. Learning revenue was down 2% in the quarter, with a 5% decline in Professional offsetting 1% growth in Academic.

AI Revenue and Growth Prospects

The company is making significant strides in AI, with $7,000,000 of AI revenue realized in the quarter and $42,000,000 achieved so far this year, already surpassing last year's total. The company expects to deliver AI revenue of $45,000,000 to $50,000,000 this year and anticipates another big year for total AI revenue in fiscal 2027. As Matthew Kissner noted, the continued expansion of the global research ecosystem positions the business for continued success at the top of the market.

Valuation and Outlook

With a P/E Ratio of 11.75 and an EV/EBITDA of 7.86, the company's valuation appears reasonable, especially considering its strong ROIC of 11.77% and ROE of 12.9%. Analysts estimate next year's revenue growth at 2.3%, which, combined with the company's discipline in managing its portfolio and deploying capital on high-return investments, suggests a positive outlook. The company's strong cash flow and leverage are expected to lead to a return to shareholders in the near future, with a Dividend Yield of 4.08% and a Free Cash Flow Yield of 10.24%.

3. NewsRoom

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Clarkston Capital Partners LLC Has $89.35 Million Holdings in John Wiley & Sons, Inc. $WLY

Mar -09

Source: defenseworld.net

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John Wiley & Sons Q3 Earnings Call Highlights

Mar -08

Source: defenseworld.net

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John Wiley & Sons (NYSE:WLY) Shares Gap Up After Strong Earnings

Mar -06

Source: defenseworld.net

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John Wiley & Sons, Inc. (WLY) Q3 2026 Earnings Call Transcript

Mar -05

Source: seekingalpha.com

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Wiley and OpenEvidence Partner to Deliver Trusted Research to Physicians at the Point of Care

Mar -03

Source: businesswire.com

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John Wiley & Sons: Structural Risk To Higher Education Casts A Shadow Over AI Licensing

Feb -18

Source: seekingalpha.com

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Wiley to Expand Prestigious Advanced Journals Portfolio

Feb -17

Source: businesswire.com

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Virtusa and Wiley Form a Multi-Year Partnership to Accelerate Wiley's Technology Transformation

Feb -10

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.22%)

6. Segments

Research

Expected Growth: 2%

Strong demand for digital learning solutions, increasing adoption of online educational resources, and strategic acquisitions drive growth. Additionally, expanding presence in emerging markets, innovative product offerings, and a shift towards subscription-based models contribute to the 2% growth rate.

Academic

Expected Growth: 3%

Strong demand for online learning resources, increasing adoption of digital textbooks, and strategic partnerships with educational institutions drive growth for John Wiley & Sons, Inc.'s Academic segment, with a 3% growth rate.

Talent

Expected Growth: 1%

Talent segment's 1% growth driven by increasing demand for digital learning platforms, strategic partnerships, and expansion into new markets. Wiley's strong brand recognition, high-quality content, and innovative products also contribute to growth. Additionally, the shift towards online learning and upskilling amidst the pandemic has boosted demand for Wiley's talent development solutions.

7. Detailed Products

Scientific, Technical, and Medical (STM) Journals

Peer-reviewed journals covering a wide range of scientific, technical, and medical fields

Professional and Trade Books

Books and e-books for professionals and practitioners in fields such as business, finance, and technology

Education and Learning Solutions

Digital learning platforms, online courses, and educational resources for students and instructors

Research and Analytics Tools

Data analytics and research tools for researchers, academics, and professionals

Online Learning Platforms

Online platforms for professional development, certification, and continuing education

Publishing Services

Publishing services for authors, societies, and institutions, including manuscript submission and peer review

8. John Wiley & Sons, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for John Wiley & Sons, Inc. is medium due to the presence of alternative educational resources and digital platforms.

Bargaining Power Of Customers

The bargaining power of customers for John Wiley & Sons, Inc. is low due to the company's strong brand reputation and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for John Wiley & Sons, Inc. is medium due to the company's dependence on a few large suppliers for printing and distribution services.

Threat Of New Entrants

The threat of new entrants for John Wiley & Sons, Inc. is low due to the high barriers to entry in the publishing industry, including significant capital requirements and established relationships with authors and customers.

Intensity Of Rivalry

The intensity of rivalry for John Wiley & Sons, Inc. is high due to the competitive nature of the publishing industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 45.81%
Debt Cost 8.21%
Equity Weight 54.19%
Equity Cost 8.37%
WACC 8.30%
Leverage 84.54%

11. Quality Control: John Wiley & Sons, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Deluxe

A-Score: 5.7/10

Value: 8.5

Growth: 3.3

Quality: 5.2

Yield: 9.0

Momentum: 3.5

Volatility: 4.7

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Townsquare Media

A-Score: 5.4/10

Value: 9.7

Growth: 3.8

Quality: 5.3

Yield: 9.0

Momentum: 0.0

Volatility: 4.7

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Scholastic

A-Score: 5.4/10

Value: 8.2

Growth: 4.2

Quality: 3.9

Yield: 5.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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John Wiley & Sons

A-Score: 5.3/10

Value: 7.5

Growth: 2.9

Quality: 6.2

Yield: 7.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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EDC

A-Score: 3.6/10

Value: 9.8

Growth: 2.7

Quality: 4.2

Yield: 1.0

Momentum: 2.0

Volatility: 1.7

1-Year Total Return ->

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Gannett Co

A-Score: 3.5/10

Value: 5.7

Growth: 3.6

Quality: 4.3

Yield: 0.0

Momentum: 4.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.61$

Current Price

36.61$

Potential

-0.00%

Expected Cash-Flows