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Also traded in: Germany

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash-to-Debt 0.18
HMHC's Cash-to-Debt is ranked lower than
84% of the 170 Companies
in the Global Education & Training Services industry.

( Industry Median: 2.93 vs. HMHC: 0.18 )
Ranked among companies with meaningful Cash-to-Debt only.
HMHC' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.04  Med: 0.4 Max: 3.14
Current: 0.18
0.04
3.14
Equity-to-Asset 0.31
HMHC's Equity-to-Asset is ranked lower than
84% of the 165 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.60 vs. HMHC: 0.31 )
Ranked among companies with meaningful Equity-to-Asset only.
HMHC' s Equity-to-Asset Range Over the Past 10 Years
Min: -0.21  Med: 0.37 Max: 0.64
Current: 0.31
-0.21
0.64
Debt-to-Equity 0.93
HMHC's Debt-to-Equity is ranked lower than
88% of the 101 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.30 vs. HMHC: 0.93 )
Ranked among companies with meaningful Debt-to-Equity only.
HMHC' s Debt-to-Equity Range Over the Past 10 Years
Min: -4.47  Med: 0.6 Max: 1.11
Current: 0.93
-4.47
1.11
Debt-to-EBITDA 4.00
HMHC's Debt-to-EBITDA is ranked lower than
80% of the 104 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.50 vs. HMHC: 4.00 )
Ranked among companies with meaningful Debt-to-EBITDA only.
HMHC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -60.85  Med: 0.97 Max: 4.58
Current: 4
-60.85
4.58
Piotroski F-Score: 6
Altman Z-Score: -0.92
Beneish M-Score: -2.92
WACC vs ROIC
6.17%
-1.92%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating Margin % -3.74
HMHC's Operating Margin % is ranked lower than
83% of the 169 Companies
in the Global Education & Training Services industry.

( Industry Median: 8.72 vs. HMHC: -3.74 )
Ranked among companies with meaningful Operating Margin % only.
HMHC' s Operating Margin % Range Over the Past 10 Years
Min: -25.49  Med: -7.86 Max: -3.74
Current: -3.74
-25.49
-3.74
Net Margin % -4.52
HMHC's Net Margin % is ranked lower than
81% of the 169 Companies
in the Global Education & Training Services industry.

( Industry Median: 5.19 vs. HMHC: -4.52 )
Ranked among companies with meaningful Net Margin % only.
HMHC' s Net Margin % Range Over the Past 10 Years
Min: -168.48  Med: -8.12 Max: -4.52
Current: -4.52
-168.48
-4.52
ROE % -8.21
HMHC's ROE % is ranked lower than
88% of the 162 Companies
in the Global Education & Training Services industry.

( Industry Median: 7.67 vs. HMHC: -8.21 )
Ranked among companies with meaningful ROE % only.
HMHC' s ROE % Range Over the Past 10 Years
Min: -27.38  Med: -10.69 Max: -5.86
Current: -8.21
-27.38
-5.86
ROA % -2.50
HMHC's ROA % is ranked lower than
82% of the 170 Companies
in the Global Education & Training Services industry.

( Industry Median: 3.64 vs. HMHC: -2.50 )
Ranked among companies with meaningful ROA % only.
HMHC' s ROA % Range Over the Past 10 Years
Min: -66.86  Med: -3.9 Max: -2.5
Current: -2.5
-66.86
-2.5
ROC (Joel Greenblatt) % -38.12
HMHC's ROC (Joel Greenblatt) % is ranked lower than
90% of the 170 Companies
in the Global Education & Training Services industry.

( Industry Median: 22.25 vs. HMHC: -38.12 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
HMHC' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -914.1  Med: -66.77 Max: 12.08
Current: -38.12
-914.1
12.08
3-Year Revenue Growth Rate 5.50
HMHC's 3-Year Revenue Growth Rate is ranked higher than
57% of the 134 Companies
in the Global Education & Training Services industry.

( Industry Median: 4.10 vs. HMHC: 5.50 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
HMHC' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 1.8  Med: 4.25 Max: 5.5
Current: 5.5
1.8
5.5
3-Year EBITDA Growth Rate -6.30
HMHC's 3-Year EBITDA Growth Rate is ranked lower than
69% of the 109 Companies
in the Global Education & Training Services industry.

( Industry Median: 8.80 vs. HMHC: -6.30 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
HMHC' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 0  Med: -13.45 Max: -6.3
Current: -6.3
3-Year EPS without NRI Growth Rate -2.10
HMHC's 3-Year EPS without NRI Growth Rate is ranked lower than
60% of the 103 Companies
in the Global Education & Training Services industry.

( Industry Median: 10.80 vs. HMHC: -2.10 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
HMHC' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 0  Med: -29.75 Max: -2.1
Current: -2.1
GuruFocus has detected 2 Warning Signs with Houghton Mifflin Harcourt Co HMHC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» HMHC's 30-Y Financials

Financials (Next Earnings Date: 2019-02-23 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q4 2017

HMHC Guru Trades in Q4 2017

Joel Greenblatt 71,143 sh (New)
Chuck Royce 1,675,759 sh (+10.05%)
Paul Tudor Jones 109,716 sh (+174.67%)
FPA Capital Fund 1,373,115 sh (-10.36%)
Jim Simons 424,400 sh (-15.39%)
First Pacific Advisors 2,847,871 sh (-17.69%)
» More
Q1 2018

HMHC Guru Trades in Q1 2018

Chuck Royce 1,806,307 sh (+7.79%)
Paul Tudor Jones 154,749 sh (+41.05%)
FPA Capital Fund 921,480 sh (-32.89%)
Joel Greenblatt 54,761 sh (-23.03%)
Jim Simons 104,300 sh (-75.42%)
First Pacific Advisors 2,300,932 sh (-19.21%)
» More
Q2 2018

HMHC Guru Trades in Q2 2018

Joel Greenblatt Sold Out
FPA Capital Fund 56,774 sh (-93.84%)
Chuck Royce 1,733,107 sh (-4.05%)
Paul Tudor Jones 129,247 sh (-16.48%)
First Pacific Advisors 179,222 sh (-92.21%)
Jim Simons 64,900 sh (-37.78%)
» More
Q3 2018

HMHC Guru Trades in Q3 2018

Jim Simons 78,699 sh (+21.26%)
FPA Capital Fund Sold Out
First Pacific Advisors Sold Out
Chuck Royce 1,159,261 sh (-33.11%)
Paul Tudor Jones 120,695 sh (-6.62%)
» More
» Details

Insider Trades

Latest Guru Trades with HMHC

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

Guru Date Action
Impact Price Range
(Average)*
Change from Average Comment Current Shares
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Business Description

Industry: Education » Education & Training Services    NAICS: 611710    SIC: 8299
Compare:BSP:SEER3, NAS:REDU, NAS:CECO, ASX:GEM, HKSE:01569, NAS:CPLA, HKSE:02001, JSE:COH, OSTO:ACAD, NAS:APEI, JSE:ADH, LSE:LTG, BSP:SEDU3, NAS:STRA, ISX:POOL, NAS:TEDU, XKRX:019685, BSP:ANIM3, HKSE:00032, NYSE:LRN » details
Traded in other countries:HM0.Germany,
Headquarter Location:USA
Houghton Mifflin Harcourt Co provides content, services and technology to both educational institutions and consumers, reaching over 50 million students in more than 150 countries. It also published trade and reference materials.

Houghton Mifflin Harcourt Co is an American educational and trade publisher. The company publishes textbooks, instructional materials, testing and assessment materials, and fiction and nonfiction books for young readers and adults. Houghton Mifflin Harcourt's educational materials serve more than 50 million students in over 150 countries. The company also offers various educational services to school districts, including consulting, teaching workshops, technology development and implementation. Educational materials such as textbooks and online program generate the majority of Houghton Mifflin Harcourt's revenue, followed by educational services.

Guru Investment Theses on Houghton Mifflin Harcourt Co

FPA Capital Comments on Houghton Mifflin - Jan 30, 2017

The biggest negative contributor for the Fund was Houghton Mifflin (NASDAQ:HMHC), which detracted 47 basis points from the Fund’s performance in the quarter. HMHC has not performed well for the Fund since we first purchased its shares. The company has missed quarterly earnings expectations, and the Board of Directors recently chose to terminate the CEO.



We like HMHC’s core business of publishing K-12 textbooks in the U.S., but the former CEO, who previously worked at Microsoft, chose to expand the business into the Educational Technology industry by purchasing a division from Scholastic Corp. In our opinion, this acquisition has taken management’s eye off the core business, and the former CEO paid a substantial premium to acquire the business. Nonetheless, we believe the board now understands it needs to find an operator who can manage the core business and generate the kind of free cash flow we believe is reasonably possible for HMHC, given the concentrated competitive landscape and barriers to entry. We have materially increased the Fund’s position in HMHC since our initial purchase and as the stock declined closer to our downside-case scenario level.



From FPA Capital's fourth quarter 2016 commentary.



Check out FPA Capital Fund latest stock trades

Top Ranked Articles about Houghton Mifflin Harcourt Co

New Report Reveals Educator Optimism at Highest Level Since 2015, Though Critical Concerns Paint a Complex Portrait of Today's Teaching Experience
Consolidated Research: 2018 Summary Expectations for Houghton Mifflin Harcourt, Abraxas Petroleum, Restoration Robotics, Cemex S.A.B. de C.V, Kratos Defense & Security Solutions, and Schweitzer-Mauduit International — Fundamental Analysis, Key Performan
Texas State Board of Education Approves Houghton Mifflin Harcourt's Into Reading, ¡Arriba la Lectura! and Into Literature for Grades K-8
California State Board of Education Approves Houghton Mifflin Harcourt's Science Dimensions for Grades K-8
Houghton Mifflin Harcourt and Audible to Publish Guy Raz's "How I Built This"
Houghton Mifflin Harcourt Schedules Conference Call to Discuss Third Quarter 2018 Results
Houghton Mifflin Harcourt Updates Outlook to Reflect Completed Riverside Divestiture
Houghton Mifflin Harcourt Completes Riverside Divestiture
Houghton Mifflin Harcourt Enters Into Definitive Agreement to Divest Riverside Clinical and Standardized Testing Portfolio to Alpine Investors
Houghton Mifflin Harcourt to Present at 18th Annual BMO Back to School Investor Conference

Ratios

vs
industry
vs
history
Price-to-Owner-Earnings 18.87
HMHC's Price-to-Owner-Earnings is ranked lower than
51% of the 67 Companies
in the Global Education & Training Services industry.

( Industry Median: 23.22 vs. HMHC: 18.87 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
HMHC' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 11.87  Med: 23.43 Max: 40.29
Current: 18.87
11.87
40.29
PB Ratio 1.43
HMHC's PB Ratio is ranked higher than
70% of the 159 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.97 vs. HMHC: 1.43 )
Ranked among companies with meaningful PB Ratio only.
HMHC' s PB Ratio Range Over the Past 10 Years
Min: 0.88  Med: 1.59 Max: 2.55
Current: 1.43
0.88
2.55
PS Ratio 0.82
HMHC's PS Ratio is ranked higher than
82% of the 162 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.90 vs. HMHC: 0.82 )
Ranked among companies with meaningful PS Ratio only.
HMHC' s PS Ratio Range Over the Past 10 Years
Min: 0.49  Med: 1.54 Max: 2.79
Current: 0.82
0.49
2.79
Price-to-Free-Cash-Flow 15.12
HMHC's Price-to-Free-Cash-Flow is ranked higher than
76% of the 66 Companies
in the Global Education & Training Services industry.

( Industry Median: 19.82 vs. HMHC: 15.12 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
HMHC' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 6.4  Med: 12.43 Max: 36.93
Current: 15.12
6.4
36.93
Price-to-Operating-Cash-Flow 8.30
HMHC's Price-to-Operating-Cash-Flow is ranked higher than
78% of the 88 Companies
in the Global Education & Training Services industry.

( Industry Median: 14.37 vs. HMHC: 8.30 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
HMHC' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 5.22  Med: 7.79 Max: 18.84
Current: 8.3
5.22
18.84
EV-to-EBIT -24.70
HMHC's EV-to-EBIT is ranked lower than
99.99% of the 125 Companies
in the Global Education & Training Services industry.

( Industry Median: 16.70 vs. HMHC: -24.70 )
Ranked among companies with meaningful EV-to-EBIT only.
HMHC' s EV-to-EBIT Range Over the Past 10 Years
Min: -42.3  Med: -23.15 Max: -5.5
Current: -24.7
-42.3
-5.5
EV-to-EBITDA 9.34
HMHC's EV-to-EBITDA is ranked higher than
73% of the 138 Companies
in the Global Education & Training Services industry.

( Industry Median: 13.57 vs. HMHC: 9.34 )
Ranked among companies with meaningful EV-to-EBITDA only.
HMHC' s EV-to-EBITDA Range Over the Past 10 Years
Min: -2324.8  Med: 10.2 Max: 207.2
Current: 9.34
-2324.8
207.2
EV-to-Revenue 1.26
HMHC's EV-to-Revenue is ranked higher than
73% of the 162 Companies
in the Global Education & Training Services industry.

( Industry Median: 2.07 vs. HMHC: 1.26 )
Ranked among companies with meaningful EV-to-Revenue only.
HMHC' s EV-to-Revenue Range Over the Past 10 Years
Min: 1  Med: 1.7 Max: 3.1
Current: 1.26
1
3.1
Current Ratio 1.48
HMHC's Current Ratio is ranked lower than
56% of the 149 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.39 vs. HMHC: 1.48 )
Ranked among companies with meaningful Current Ratio only.
HMHC' s Current Ratio Range Over the Past 10 Years
Min: 1.05  Med: 1.79 Max: 2.93
Current: 1.48
1.05
2.93
Quick Ratio 1.17
HMHC's Quick Ratio is ranked lower than
68% of the 149 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.28 vs. HMHC: 1.17 )
Ranked among companies with meaningful Quick Ratio only.
HMHC' s Quick Ratio Range Over the Past 10 Years
Min: 0.64  Med: 1.39 Max: 2.51
Current: 1.17
0.64
2.51
Days Inventory 84.14
HMHC's Days Inventory is ranked lower than
85% of the 91 Companies
in the Global Education & Training Services industry.

( Industry Median: 8.22 vs. HMHC: 84.14 )
Ranked among companies with meaningful Days Inventory only.
HMHC' s Days Inventory Range Over the Past 10 Years
Min: 73.24  Med: 81.09 Max: 96.53
Current: 84.14
73.24
96.53
Days Sales Outstanding 90.38
HMHC's Days Sales Outstanding is ranked lower than
67% of the 129 Companies
in the Global Education & Training Services industry.

( Industry Median: 27.55 vs. HMHC: 90.38 )
Ranked among companies with meaningful Days Sales Outstanding only.
HMHC' s Days Sales Outstanding Range Over the Past 10 Years
Min: 52.14  Med: 66.01 Max: 90.38
Current: 90.38
52.14
90.38
Days Payable 41.08
HMHC's Days Payable is ranked higher than
54% of the 102 Companies
in the Global Education & Training Services industry.

( Industry Median: 26.87 vs. HMHC: 41.08 )
Ranked among companies with meaningful Days Payable only.
HMHC' s Days Payable Range Over the Past 10 Years
Min: 22.71  Med: 37.94 Max: 51.62
Current: 41.08
22.71
51.62

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio 4.60
HMHC's 3-Year Average Share Buyback Ratio is ranked higher than
94% of the 93 Companies
in the Global Education & Training Services industry.

( Industry Median: -0.90 vs. HMHC: 4.60 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
HMHC' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -0.5  Med: 4.1 Max: 4.6
Current: 4.6
-0.5
4.6

Valuation & Return

vs
industry
vs
history
Price-to-Intrinsic-Value-Projected-FCF 0.47
HMHC's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
99.99% of the 76 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.71 vs. HMHC: 0.47 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
HMHC' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.35  Med: 0.39 Max: 0.48
Current: 0.47
0.35
0.48
Price-to-Median-PS-Value 0.53
HMHC's Price-to-Median-PS-Value is ranked higher than
93% of the 138 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.12 vs. HMHC: 0.53 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
HMHC' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.39  Med: 1.01 Max: 1.72
Current: 0.53
0.39
1.72
Earnings Yield (Greenblatt) % -4.07
HMHC's Earnings Yield (Greenblatt) % is ranked lower than
84% of the 170 Companies
in the Global Education & Training Services industry.

( Industry Median: 4.57 vs. HMHC: -4.07 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
HMHC' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -18  Med: -4.3 Max: -2.4
Current: -4.07
-18
-2.4

More Statistics

Revenue (TTM) (Mil) $1,425.83
EPS (TTM) $ -0.52
Beta0.78
Volatility60.51%
52-Week Range $5.10 - 10.05
Shares Outstanding (Mil)123.56

Piotroski F-Score Details

Piotroski F-Score: 66
Positive ROAN
Positive CFROAY
Higher ROA yoyY
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyY
Less Shares Outstanding yoyN
Higher Gross Margin yoyY
Higher Asset Turnover yoyY

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