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Houghton Mifflin Harcourt

DB:HM0
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HM0
DB
$164M
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

Houghton Mifflin Harcourt Company, a learning company, provides curriculum, supplemental, intervention solutions, and professional learning services worldwide. The last earnings update was 40 days ago. More info.


Add to Portfolio Compare Print
  • Houghton Mifflin Harcourt has significant price volatility in the past 3 months.
HM0 Share Price and Events
7 Day Returns
-29.4%
DB:HM0
2.2%
Europe Consumer Services
2.1%
DE Market
1 Year Returns
-80.6%
DB:HM0
2.4%
Europe Consumer Services
-16.6%
DE Market
HM0 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Houghton Mifflin Harcourt (HM0) -29.4% -71.3% -76.6% -80.6% -87.5% -94.5%
Europe Consumer Services 2.2% -7.2% -6.5% 2.4% -15.6% -55.7%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • HM0 underperformed the Consumer Services industry which returned 2.4% over the past year.
  • HM0 underperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
HM0
Industry
5yr Volatility vs Market

Value

 Is Houghton Mifflin Harcourt undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Houghton Mifflin Harcourt to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Houghton Mifflin Harcourt.

DB:HM0 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HM0
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.644 (1 + (1- 21%) (488.1%))
2.425
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:HM0 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Houghton Mifflin Harcourt is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:HM0 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 83.45 Analyst x2 75.53
2021 95.30 Analyst x2 78.06
2022 93.03 Est @ -2.38% 68.97
2023 91.37 Est @ -1.79% 61.31
2024 90.12 Est @ -1.37% 54.73
2025 89.15 Est @ -1.07% 49.00
2026 88.38 Est @ -0.87% 43.96
2027 87.74 Est @ -0.73% 39.50
2028 87.19 Est @ -0.62% 35.53
2029 86.71 Est @ -0.55% 31.98
Present value of next 10 years cash flows $538.00
DB:HM0 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $86.71 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$793.82
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $793.82 ÷ (1 + 10.49%)10
$292.75
DB:HM0 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $538.00 + $292.75
$830.75
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $830.75 / 125.41
$6.62
DB:HM0 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HM0 represents 0.9542x of NasdaqGS:HMHC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.9542x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 6.62 x 0.9542
€6.32
Value per share (EUR) From above. €6.32
Current discount Discount to share price of €1.25
= -1 x (€1.25 - €6.32) / €6.32
80.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Houghton Mifflin Harcourt is available for.
Intrinsic value
>50%
Share price is €1.25 vs Future cash flow value of €6.32
Current Discount Checks
For Houghton Mifflin Harcourt to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Houghton Mifflin Harcourt's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Houghton Mifflin Harcourt's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Houghton Mifflin Harcourt's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Houghton Mifflin Harcourt's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HM0 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-1.72
NasdaqGS:HMHC Share Price ** NasdaqGS (2020-04-07) in USD $1.31
Europe Consumer Services Industry PE Ratio Median Figure of 12 Publicly-Listed Consumer Services Companies 15.21x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Houghton Mifflin Harcourt.

DB:HM0 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HMHC Share Price ÷ EPS (both in USD)

= 1.31 ÷ -1.72

-0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Houghton Mifflin Harcourt is loss making, we can't compare its value to the Europe Consumer Services industry average.
  • Houghton Mifflin Harcourt is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Houghton Mifflin Harcourt's expected growth come at a high price?
Raw Data
DB:HM0 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
27.5%per year
Europe Consumer Services Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Services Companies 0.33x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Houghton Mifflin Harcourt, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Houghton Mifflin Harcourt's assets?
Raw Data
DB:HM0 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $4.55
NasdaqGS:HMHC Share Price * NasdaqGS (2020-04-07) in USD $1.31
Europe Consumer Services Industry PB Ratio Median Figure of 22 Publicly-Listed Consumer Services Companies 2.18x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:HM0 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HMHC Share Price ÷ Book Value per Share (both in USD)

= 1.31 ÷ 4.55

0.29x

* Primary Listing of Houghton Mifflin Harcourt.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Houghton Mifflin Harcourt is good value based on assets compared to the Europe Consumer Services industry average.
X
Value checks
We assess Houghton Mifflin Harcourt's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Houghton Mifflin Harcourt has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Houghton Mifflin Harcourt expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Houghton Mifflin Harcourt expected to grow at an attractive rate?
  • Unable to compare Houghton Mifflin Harcourt's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Houghton Mifflin Harcourt's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • Houghton Mifflin Harcourt's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HM0 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HM0 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 27.5%
DB:HM0 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 1.7%
Europe Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
Europe Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HM0 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HM0 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,482 -105 2
2021-12-31 1,415 191 -122 5
2020-12-31 1,391 222 -147 5
2020-04-07
DB:HM0 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,391 255 -214
2019-09-30 1,398 199 -175
2019-06-30 1,349 13 -160
2019-03-31 1,317 36 -149
2018-12-31 1,322 115 -137
2018-09-30 1,307 140 -88
2018-06-30 1,307 112 -83
2018-03-31 1,305 134 -106
2017-12-31 1,327 135 -120
2017-09-30 1,335 173 -265
2017-06-30 1,352 172 -264
2017-03-31 1,389 161 -240

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Houghton Mifflin Harcourt is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Houghton Mifflin Harcourt's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HM0 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Houghton Mifflin Harcourt Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HM0 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 -0.56 -0.31 -0.80 2.00
2021-12-31 -0.86 -0.46 -1.18 6.00
2020-12-31 -1.36 -0.89 -2.44 6.00
2020-04-07
DB:HM0 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -1.72
2019-09-30 -1.41
2019-06-30 -1.30
2019-03-31 -1.21
2018-12-31 -1.11
2018-09-30 -0.71
2018-06-30 -0.67
2018-03-31 -0.86
2017-12-31 -0.98
2017-09-30 -2.16
2017-06-30 -2.15
2017-03-31 -1.96

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Houghton Mifflin Harcourt will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Houghton Mifflin Harcourt's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Houghton Mifflin Harcourt has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Houghton Mifflin Harcourt performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Houghton Mifflin Harcourt's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Houghton Mifflin Harcourt does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Houghton Mifflin Harcourt's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Houghton Mifflin Harcourt's 1-year growth to the Europe Consumer Services industry average as it is not currently profitable.
Earnings and Revenue History
Houghton Mifflin Harcourt's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Houghton Mifflin Harcourt Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HM0 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,390.67 -213.83 662.44
2019-09-30 1,398.24 -175.11 674.00
2019-06-30 1,348.82 -160.46 660.97
2019-03-31 1,317.29 -148.93 654.75
2018-12-31 1,322.42 -137.46 648.02
2018-09-30 1,307.12 -87.51 637.80
2018-06-30 1,307.08 -82.79 634.74
2018-03-31 1,304.87 -105.57 620.83
2017-12-31 1,327.03 -120.34 632.84
2017-09-30 1,335.09 -264.93 649.90
2017-06-30 1,351.91 -263.55 662.33
2017-03-31 1,388.79 -240.07 681.72
2016-12-31 1,291.98 -306.15 666.92
2016-09-30 1,428.88 -200.78 698.79
2016-06-30 1,471.37 -159.73 705.38
2016-03-31 1,459.21 -139.08 701.59
2015-12-31 1,416.06 -133.87 675.92
2015-09-30 1,383.54 -120.34 663.04
2015-06-30 1,359.05 -144.39 638.94
2015-03-31 1,381.05 -125.10 620.53
2014-12-31 1,372.32 -111.49 612.54
2014-09-30 1,405.71 -92.41 619.41
2014-06-30 1,404.89 -94.33 608.26
2014-03-31 1,365.95 -120.14 589.44
2013-12-31 1,378.61 -111.19 580.89
2013-09-30 1,361.93 -80.74 533.59
2013-06-30 1,305.75 -118.91 516.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Houghton Mifflin Harcourt has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Houghton Mifflin Harcourt has efficiently used its assets last year compared to the Europe Consumer Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Houghton Mifflin Harcourt improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Houghton Mifflin Harcourt's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Houghton Mifflin Harcourt has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Houghton Mifflin Harcourt's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Houghton Mifflin Harcourt's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Houghton Mifflin Harcourt is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Houghton Mifflin Harcourt's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Houghton Mifflin Harcourt's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Houghton Mifflin Harcourt Company Filings, last reported 3 months ago.

DB:HM0 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 566.36 658.19 296.35
2019-09-30 686.69 761.50 308.68
2019-06-30 613.61 822.38 15.11
2019-03-31 652.67 762.51 84.18
2018-12-31 768.47 763.65 303.20
2018-09-30 825.11 764.79 134.06
2018-06-30 734.26 815.92 30.71
2018-03-31 752.98 767.06 98.66
2017-12-31 795.19 769.39 235.43
2017-09-30 813.63 773.73 210.00
2017-06-30 718.85 775.67 78.74
2017-03-31 763.42 776.30 164.00
2016-12-31 880.04 778.84 306.94
2016-09-30 1,062.67 786.67 216.50
2016-06-30 961.89 787.51 98.01
2016-03-31 1,006.49 785.85 236.41
2015-12-31 1,198.32 780.88 432.40
2015-09-30 1,514.92 798.72 523.54
2015-06-30 1,424.47 796.06 319.41
2015-03-31 1,610.21 178.95 562.04
2014-12-31 1,759.68 243.13 743.35
2014-09-30 1,848.22 243.75 588.48
2014-06-30 1,727.87 244.38 193.02
2014-03-31 1,706.18 245.00 268.32
2013-12-31 1,850.28 245.63 425.35
2013-09-30 1,904.11 246.25 358.01
2013-06-30 1,794.84 246.88 212.58
  • Houghton Mifflin Harcourt's level of debt (116.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (13.8% vs 116.2% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Houghton Mifflin Harcourt has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Houghton Mifflin Harcourt has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.5% per year.
X
Financial health checks
We assess Houghton Mifflin Harcourt's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Houghton Mifflin Harcourt has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Houghton Mifflin Harcourt's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Houghton Mifflin Harcourt dividends. Estimated to be 0% next year.
If you bought €2,000 of Houghton Mifflin Harcourt shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Houghton Mifflin Harcourt's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Houghton Mifflin Harcourt's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HM0 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HM0 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 2.00
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2020-04-07

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Houghton Mifflin Harcourt has not reported any payouts.
  • Unable to verify if Houghton Mifflin Harcourt's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Houghton Mifflin Harcourt's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Houghton Mifflin Harcourt has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Houghton Mifflin Harcourt's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Houghton Mifflin Harcourt's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Houghton Mifflin Harcourt afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Houghton Mifflin Harcourt has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Houghton Mifflin Harcourt's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jack Lynch
COMPENSATION $4,710,070
AGE 60
TENURE AS CEO 3 years
CEO Bio

Mr. John J. Lynch Jr., also known as Jack, has been the Chief Executive Officer, President and Director of Houghton Mifflin Harcourt Publishing Company (HMH) since 2017. Mr. Lynch joined HMH in 2017. Mr. Lynch has been Chief Executive Officer and President of Houghton Mifflin Harcourt Company since April 2017. With over 25 years of management experience in the software and information industry, Mr. Lynch is highly respected in the field of education technology. He has extensive background in the K-12 education and technology space. Mr. Lynch has a proven track record of launching and growing technology-driven information businesses. He has been active in the K-12 education industry since 1999. Prior to HMH, he served as the Chief Executive Officer of Renaissance Learning Inc. since November 5, 2012. He served as the President and Chief Executive Officer of the Pearson Technology Group. He served as Senior Vice President of Business Development at Wolters Kluwer Nv since May 2006 and also served as its Member of Executive Board from May 1, 2007 to November 2012. Mr. Lynch identifies and investigates cross-divisional business opportunities for Wolters Kluwer, focusing on leveraging flagship products and business models. In his role as Executive Board member, he is responsible for global shared services, technology, business development and the transport services business. He serves as Senior Officer of Service Products at Wolters Kluwer, CCH, Inc. From 2003 to 2006, he served as the Chief Executive Officer and President of the Pearson School Technology Group within the Pearson Education School Companies. In this role, Mr. Lynch oversaw technology-focused businesses, including Pearson School Systems, Family Education Network and a new online start up initiative, as well as central software development and business development and strategic initiatives. He served as General Manager of a number of information services and technology companies including Jnana Technologies and CCH Legal Information Services, a leading provider of corporate agent representation, corporate filing and UCC search and filing services that has since become part of Wolters Kluwer. From 1996 to 1999, Mr. Lynch served as general manager of artificial intelligence software company Jnana Technologies (now Neota Logic). From 1992 to 1996, he served as the Chief Executive Officer of CCH Legal Information Services, a leading provider of corporate registered agent and entity management services, trademark and UCC search and filing services. From 1999 to 2003, he served as founding Chief Executive Officer and Board Member at Bigchalk (bigchalk.com), The Education Network, where he created an education network serving 40,000 schools. He has been Director at Houghton Mifflin Harcourt Company May 19, 2017. Mr. Lynch served as a Trustee of the Boston Classical Orchestra. He was honored with the 2016 EY Entrepreneur of the Year award for his leadership. Mr. Lynch holds a Bachelor of Arts degree from Boston University.

CEO Compensation
  • Jack's compensation has increased whilst company is loss making.
  • Jack's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Houghton Mifflin Harcourt management team in years:

3
Average Tenure
56.5
Average Age
  • The tenure for the Houghton Mifflin Harcourt management team is about average.
Management Team

Jack Lynch

TITLE
President
COMPENSATION
$5M
AGE
60
TENURE
3 yrs

Joe Abbott

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
42
TENURE
4.1 yrs

Bill Bayers

TITLE
Executive VP
COMPENSATION
$2M
AGE
64
TENURE
12.9 yrs

Jim O'Neill

TITLE
Executive VP & GM of Core Solutions
COMPENSATION
$2M
AGE
46
TENURE
2.6 yrs

Kristen Lavelle

TITLE
Senior Vice President of Global Operations & Customer Experience
TENURE
2.9 yrs

Peter George

TITLE
Chief Technology Officer
AGE
59

Trish Torizzo

TITLE
Chief Information Officer & Senior VP
TENURE
2.5 yrs

Brian Shipman

TITLE
Head of Investor Relations & Senior VP
TENURE
3.2 yrs

Alejandro Reyes

TITLE
Senior VP & Chief People Officer
AGE
54
TENURE
2.5 yrs

Bianca Olson

TITLE
Senior Vice President of Corporate Affairs
Board of Directors Tenure

Average tenure and age of the Houghton Mifflin Harcourt board of directors in years:

7.5
Average Tenure
61
Average Age
  • The tenure for the Houghton Mifflin Harcourt board of directors is about average.
Board of Directors

Larry Fish

TITLE
Independent Chairman of the Board
COMPENSATION
$344K
AGE
74
TENURE
9.3 yrs

Jack Lynch

TITLE
President
COMPENSATION
$5M
AGE
60
TENURE
2.9 yrs

Jill Greenthal

TITLE
Independent Director
COMPENSATION
$188K
AGE
62
TENURE
7.8 yrs

John Killian

TITLE
Independent Director
COMPENSATION
$200K
AGE
64
TENURE
9.3 yrs

Jock McKernan

TITLE
Independent Director
COMPENSATION
$195K
AGE
71
TENURE
7.6 yrs

Louis Gordon Crovitz

TITLE
Independent Director
COMPENSATION
$170K
AGE
60
TENURE
7.7 yrs

E. Novak

TITLE
Independent Director
COMPENSATION
$180K
AGE
70
TENURE
7.4 yrs

Tracey Weber

TITLE
Independent Director
COMPENSATION
$185K
AGE
52
TENURE
3.8 yrs

Dan Allen

TITLE
Independent Director
AGE
50
TENURE
3.3 yrs

Jean Desravines

TITLE
Independent Director
COMPENSATION
$185K
AGE
47
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
14. May 19 Buy Lawrence Fish Individual 13. May 19 13. May 19 20,000 €5.76 €115,205
X
Management checks
We assess Houghton Mifflin Harcourt's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Houghton Mifflin Harcourt has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Houghton Mifflin Harcourt Company, a learning company, provides curriculum, supplemental, intervention solutions, and professional learning services worldwide. The company operates in two segments, Education and HMH Books & Media. The Education segment provides educational products, technology platforms, and services, including print and digital content in the form of textbooks, digital courseware, instructional aids, educational assessment, and intervention solutions for students. The Trade Publishing segment primarily develops, markets, and sells consumer books in print and digital formats, as well as licenses book rights to other publishers and electronic businesses; and reference materials, such as fiction and non-fiction books, dictionaries, and other reference works to schools, colleges, libraries, office supply distributors, and other businesses. This segment distributes products through retail stores comprising physical and online, and wholesalers. The company was formerly known as HMH Holdings (Delaware), Inc. and changed its name to Houghton Mifflin Harcourt Company in October 2013. Houghton Mifflin Harcourt Company was founded in 1832 and is headquartered in Boston, Massachusetts.

Details
Name: Houghton Mifflin Harcourt Company
HM0
Exchange: DB
Founded: 1832
$150,843,749
125,406,121
Website: http://www.hmhco.com
Address: Houghton Mifflin Harcourt Company
125 High Street,
Boston,
Massachusetts, 02110,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HMHC Common Stock Nasdaq Global Select US USD 14. Nov 2013
DB HM0 Common Stock Deutsche Boerse AG DE EUR 14. Nov 2013
Number of employees
Current staff
Staff numbers
3,400
Houghton Mifflin Harcourt employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 23:35
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.