Cengage Learning Holdings II, Inc.
Cengage Learning Holdings II, Inc. Fundamental Analysis
Cengage Learning Holdings II, Inc. (CNGO) shows weak financial fundamentals with a PE ratio of -28.14, profit margin of -3.10%, and ROE of 1.23%. The company generates $1.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 430.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CNGO's fundamental strength across five key dimensions:
Efficiency Score
WeakCNGO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCNGO trades at attractive valuation levels.
Growth Score
WeakCNGO faces weak or negative growth trends.
Financial Health Score
ModerateCNGO shows balanced financial health with some risks.
Profitability Score
ModerateCNGO maintains healthy but balanced margins.
Key Financial Metrics
Is CNGO Expensive or Cheap?
P/E Ratio
CNGO trades at -28.14 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CNGO's PEG of -0.55 indicates potential undervaluation.
Price to Book
The market values Cengage Learning Holdings II, Inc. at -22.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.67 times EBITDA. This is generally considered low.
How Well Does CNGO Make Money?
Net Profit Margin
For every $100 in sales, Cengage Learning Holdings II, Inc. keeps $-3.10 as profit after all expenses.
Operating Margin
Core operations generate 15.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.23 in profit for every $100 of shareholder equity.
ROA
Cengage Learning Holdings II, Inc. generates $-1.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cengage Learning Holdings II, Inc. produces operating cash flow of $153.08M, showing steady but balanced cash generation.
Free Cash Flow
Cengage Learning Holdings II, Inc. produces free cash flow of $117.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
CNGO converts 9.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-28.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
-22.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-29.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.23
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How CNGO Stacks Against Its Sector Peers
| Metric | CNGO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -28.14 | 22.91 | Better (Cheaper) |
| ROE | 122.57% | 1005.00% | Weak |
| Net Margin | -3.10% | -60132.00% (disorted) | Weak |
| Debt/Equity | -29.92 | 1.28 | Strong (Low Leverage) |
| Current Ratio | 0.89 | 1.65 | Weak Liquidity |
| ROA | -1.80% | -581836.00% (disorted) | Weak |
CNGO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cengage Learning Holdings II, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming