Houghton Mifflin Harcourt Company
Houghton Mifflin Harcourt Company Fundamental Analysis
Houghton Mifflin Harcourt Company (HMHC) shows weak financial fundamentals with a PE ratio of 1344.01, profit margin of 0.20%, and ROE of 0.98%. The company generates N/A 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 21.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HMHC's fundamental strength across five key dimensions:
Efficiency Score
WeakHMHC struggles to generate sufficient returns from assets.
Valuation Score
WeakHMHC trades at a premium to fair value.
Growth Score
ModerateHMHC shows steady but slowing expansion.
Financial Health Score
ModerateHMHC shows balanced financial health with some risks.
Profitability Score
WeakHMHC struggles to sustain strong margins.
Key Financial Metrics
Is HMHC Expensive or Cheap?
P/E Ratio
HMHC trades at 1344.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HMHC's PEG of 13.44 indicates potential overvaluation.
Price to Book
The market values Houghton Mifflin Harcourt Company at 8.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.04 times EBITDA. This is generally considered low.
How Well Does HMHC Make Money?
Net Profit Margin
For every $100 in sales, Houghton Mifflin Harcourt Company keeps $0.20 as profit after all expenses.
Operating Margin
Core operations generate 23.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.98 in profit for every $100 of shareholder equity.
ROA
Houghton Mifflin Harcourt Company generates $0.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $1.74 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1344.005
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.39
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How HMHC Stacks Against Its Sector Peers
| Metric | HMHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1344.01 | 23.01 | Worse (Expensive) |
| ROE | 0.98% | 1228.00% | Weak |
| Net Margin | 0.20% | -4008.00% (disorted) | Weak |
| Debt/Equity | 1.37 | 0.78 | Weak (High Leverage) |
| Current Ratio | 1.39 | 2.35 | Neutral |
| ROA | 0.10% | -157547.00% (disorted) | Weak |
HMHC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Houghton Mifflin Harcourt Company'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: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility