Houghton Mifflin Harcourt Stock Analysis, Valuation (NASDAQ:HMHC)

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$7.55 $0.23 (2.96%) HMHC stock closing price Jul 18, 2018 (Closing)

Watch the robo advisor video of Houghton Mifflin Harcourt stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for HMHC stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Houghton Mifflin Harcourt Co Stock Rating 1.6/5

Amigobulls HMHC stock analysis uses latest quarter 2018 Q1 financial data like Houghton Mifflin Harcourt revenue growth, profit margins and cash flows. Houghton Mifflin Harcourt valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Houghton Mifflin Harcourt stock rating is our opinion about the business fundamentals of the company.

Should you buy HMHC stock?

  • HMHC stock is trading at a favorable price to sales multiple of 0.7 as against the Business Services sector average multiple of 1.6.

Should you sell HMHC stock?

  • Houghton Mifflin Harcourt reported an average operating margin of -7.4 over the Last Twelve Months (LTM).
  • Houghton Mifflin Harcourt posted an average Net loss of -6% in the last twelve months.
  • Houghton Mifflin Harcourt is debt laden and has a high debt/equity ratio of 1.02.
  • The company does not have profits. Hence the PE ratio is meaningless for HMHC stock.
  • Houghton Mifflin Harcourt has a negative ROIC (Return on Invested Capital) of -4.2.
  • Houghton Mifflin Harcourt has a negative ROE (Return On Equity) of -10.9, indicating the company is not profitable.
  • Houghton Mifflin Harcourt has a negative FCF (Free Cash Flow) margin of -49.6.

Comments on this video and Houghton Mifflin Harcourt stock

Amigobulls Houghton Mifflin Harcourt stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of HMHC stock. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Houghton Mifflin Harcourt revenue growth and profit or net income are two main metrics which help in identifying whether HMHC stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.