6/30/2013

Now Boring and Unloved but a Brand Name since 1931 with 7.10% dividend Yield


VALU:  Value Line, Inc

Value Line founded in 1931 produces investment publications. Those investment publications include the Value Line Investment Survey, The Value Line Investment Survey-Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus names. The company also provides niche newsletters, such as The Value Line Special Situations Service, The Value Line Fund Advisor, The Value Line Convertibles Survey, Value Line Daily Options Survey, Value Line Select, and Value Line Dividend Select that offers information on securities. The Value Line Research Center offers on-line access to select company investment research products covering stocks, mutual funds, options, and convertible securities, as well as special situation stocks.

VALU has many interesting attributes that make it worth looking at more closely.Current price is $8.50

 listing of a few thoughts
1) Share count has been slightly reduced from the 2004 balance of 9.98M to the current balance of 9.88M.
2) Current Dividend Yield of 7.10% supported by a strong balance sheet with no long term debt.
3) Small positive insider buying during 2011 to current.
4) Mean reversion candidate with a 52 change of -30% trading near 52 low of 8.02.
5) Historically at lowest value based on P/B and P/S.
6) Current and historical double digit ROIC. The ROIC averaged 38% from 2005 to 2012. The current TTM ROIC is 18.87%
7) This may be considered a negative but Insider ownership is 87.41%, Institutional ownership is 7.10%. The Float is only 1.24M versus the shares outstanding of 9.88M and  shorts as a percentage of the float 12%.

Market Cap: 83.98M,   Enterprise Value:  70.09M
Price/Sales: 2.35, Price/Book: 2.56
Enterprise Value/Revenue: 1.96, Enterprise Value/EBITDA: 17.57
Profit Margin: 17.28%, Operating Margin: 10.39%
Return on Assets (ttm): 2.80%, Return on Equity (ttm): 18.87%
Qtrly Revenue Growth (yoy):     -0.60%
Gross Profit (ttm):     36.61M, EBITDA (ttm):  3.99M
Total Cash:       13.90M, Total Cash Per Share:     1.41
Book Value Per Share (mrq):     3.33
Operating Cash Flow (ttm):      1.30M, Levered Free Cash Flow (ttm):   1.83M
52-Week Change:        -29.11%, S&P500 52-Week Change: 17.63%

52-Week High (Aug 6, 2012):    13.69, 52-Week Low (Jun 24, 2013):    8.02

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