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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 0.27
HMHC's Cash-to-Debt is ranked lower than
96% of the 163 Companies
in the Global Education & Training Services industry.

( Industry Median: 2.42 vs. HMHC: 0.27 )
Ranked among companies with meaningful Cash-to-Debt only.
HMHC' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.1  Med: 0.61 Max: 3.14
Current: 0.27
0.1
3.14
Equity-to-Asset 0.30
HMHC's Equity-to-Asset is ranked lower than
85% of the 159 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.61 vs. HMHC: 0.30 )
Ranked among companies with meaningful Equity-to-Asset only.
HMHC' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.28  Med: 0.43 Max: 0.64
Current: 0.3
0.28
0.64
Debt-to-Equity 0.95
HMHC's Debt-to-Equity is ranked lower than
86% of the 102 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.32 vs. HMHC: 0.95 )
Ranked among companies with meaningful Debt-to-Equity only.
HMHC' s Debt-to-Equity Range Over the Past 10 Years
Min: -4.47  Med: 0.33 Max: 1.07
Current: 0.95
-4.47
1.07
Debt-to-EBITDA 1422.05
HMHC's Debt-to-EBITDA is ranked lower than
99.99% of the 102 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.51 vs. HMHC: 1422.05 )
Ranked among companies with meaningful Debt-to-EBITDA only.
HMHC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -61.31  Med: 0.75 Max: 1422.05
Current: 1422.05
-61.31
1422.05
Piotroski F-Score: 3
Altman Z-Score: -1.19
Beneish M-Score: -3.38
WACC vs ROIC
5.99%
-15.16%
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 : 3/10

vs
industry
vs
history
Operating Margin % -20.73
HMHC's Operating Margin % is ranked lower than
88% of the 162 Companies
in the Global Education & Training Services industry.

( Industry Median: 6.98 vs. HMHC: -20.73 )
Ranked among companies with meaningful Operating Margin % only.
HMHC' s Operating Margin % Range Over the Past 10 Years
Min: -157.27  Med: -8.8 Max: -6.22
Current: -20.73
-157.27
-6.22
Net Margin % -18.58
HMHC's Net Margin % is ranked lower than
89% of the 162 Companies
in the Global Education & Training Services industry.

( Industry Median: 4.29 vs. HMHC: -18.58 )
Ranked among companies with meaningful Net Margin % only.
HMHC' s Net Margin % Range Over the Past 10 Years
Min: -168.48  Med: -8.79 Max: -6.78
Current: -18.58
-168.48
-6.78
ROE % -30.44
HMHC's ROE % is ranked lower than
92% of the 155 Companies
in the Global Education & Training Services industry.

( Industry Median: 7.26 vs. HMHC: -30.44 )
Ranked among companies with meaningful ROE % only.
HMHC' s ROE % Range Over the Past 10 Years
Min: -30.44  Med: -9.05 Max: -5.86
Current: -30.44
-30.44
-5.86
ROA % -9.45
HMHC's ROA % is ranked lower than
86% of the 163 Companies
in the Global Education & Training Services industry.

( Industry Median: 3.30 vs. HMHC: -9.45 )
Ranked among companies with meaningful ROA % only.
HMHC' s ROA % Range Over the Past 10 Years
Min: -66.86  Med: -4.08 Max: -2.77
Current: -9.45
-66.86
-2.77
ROC (Joel Greenblatt) % -147.25
HMHC's ROC (Joel Greenblatt) % is ranked lower than
91% of the 162 Companies
in the Global Education & Training Services industry.

( Industry Median: 18.94 vs. HMHC: -147.25 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
HMHC' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -914.1  Med: -47.48 Max: 12.08
Current: -147.25
-914.1
12.08
3-Year Revenue Growth Rate 4.40
HMHC's 3-Year Revenue Growth Rate is ranked lower than
52% of the 134 Companies
in the Global Education & Training Services industry.

( Industry Median: 4.80 vs. HMHC: 4.40 )
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: 0  Med: 0 Max: 4.4
Current: 4.4
0
4.4
3-Year EPS without NRI Growth Rate 43.20
HMHC's 3-Year EPS without NRI Growth Rate is ranked higher than
83% of the 102 Companies
in the Global Education & Training Services industry.

( Industry Median: 7.20 vs. HMHC: 43.20 )
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: 0 Max: 43.2
Current: 43.2
0
43.2
» HMHC's 30-Y Financials

Financials (Next Earnings Date: 2018-02-23)


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

» Details

Guru Trades

Q1 2017

HMHC Guru Trades in Q1 2017

Jim Simons 1,050,800 sh (+74.58%)
FPA Capital Fund 2,166,977 sh (+51.17%)
First Pacific Advisors 4,257,337 sh (+43.23%)
Chuck Royce 1,446,859 sh (+28.20%)
Paul Tudor Jones 69,565 sh (+18.51%)
Manning & Napier Advisors, Inc 3,657,800 sh (-9.78%)
» More
Q2 2017

HMHC Guru Trades in Q2 2017

Chuck Royce 1,489,259 sh (+2.93%)
First Pacific Advisors 3,619,997 sh (-14.97%)
FPA Capital Fund 1,616,977 sh (-25.38%)
Manning & Napier Advisors, Inc 2,698,414 sh (-26.23%)
Paul Tudor Jones 11,013 sh (-84.17%)
Jim Simons 132,500 sh (-87.39%)
» More
Q3 2017

HMHC Guru Trades in Q3 2017

Jim Simons 501,600 sh (+278.57%)
Paul Tudor Jones 39,945 sh (+262.71%)
Chuck Royce 1,522,759 sh (+2.25%)
Manning & Napier Advisors, Inc Sold Out
First Pacific Advisors 3,460,047 sh (-4.42%)
FPA Capital Fund 1,531,847 sh (-5.26%)
» More
Q4 2017

HMHC Guru Trades in Q4 2017

FPA Capital Fund 1,373,115 sh (-10.36%)
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
FPA Capital Fund 2017-12-31 Reduce -10.36%0.62%$8.2 - $12.2 $ 9.00-10%1,373,115
FPA Capital Fund 2017-09-30 Reduce -5.26%0.29%$9.9 - $12.4 $ 9.00-20%1,531,847
FPA Capital Fund 2017-06-30 Reduce -25.38%1.12%$9.95 - $13.7 $ 9.00-26%1,616,977
FPA Capital Fund 2017-03-31 Add 51.17%1.49%$9.35 - $11.3 $ 9.00-14%2,166,977
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
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Houghton Mifflin Harcourt Co does not have enough historical financial data to display Peter Lynch Chart.

Business Description

Industry: Education » Education & Training Services    NAICS: 611710    SIC: 8299
Compare:NAS:HLG, ASX:GEM, BSP:SEDU3, ASX:IEL, BSP:SEER3, HKSE:06068, JSE:COH, NAS:STRA, NAS:CPLA, NAS:TEDU, NAS:CECO, HKSE:01569, NAS:REDU, ASX:NVT, KUW:HUMANSOFT, HKSE:02001, OSTO:ACAD, BSP:ANIM3, HKSE:01317, ISX:POOL » 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 was incorporated on March 5, 2010. The Company is engaged in the providing education solutions across a variety of media. It provides content, services and technology to both educational institutions and consumers, reaching over 50 million students in more than 150 countries. Company's intellectual property assets consist of its trademarks and copyrights in its content. It operates in the United States. Its competitors include Pearson Education, Inc., McGraw Hill Education, Cengage Learning, Inc., Scholastic Corporation and K12 Inc.

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

Baron Funds Comments on Houghton Mifflin Harcourt - Aug 17, 2016

Houghton Mifflin Harcourt Company (NASDAQ:HMHC), a leading publisher of educational materials and solutions for K-12 schools, fell in the quarter over concerns about the pace of near-term growth. California appears to be stretching out the adoption of a new reading program, which will negatively impact company bookings and revenues this year. There are also some concerns about the market share the company will garner from this and other adoptions. We still believe that the company is on the cusp of significant growth in “post-plate” cash EBITDA, the metric of most import when valuing the business. We believe this will be driven by overall industry growth, the company maintaining its 40% market share of new orders, and the realization of much higher margins as the business gains scale and transforms from analog/print to digital/subscription. We believe the stock can increase multiple-fold if this plays out as we foresee, so we deem it worth the wait.





From Baron Funds' Small Cap Fund second quarter 2016 shareholder letter.



Check out Ron Baron latest stock trades

FPA Capital Comments on Houghton Mifflin - Aug 03, 2016

In terms of individual portfolio weightings, the largest percentage increase during the quarter was Houghton Mifflin (NASDAQ:HMHC), which more than doubled in size from a little over 1% at the end of the first quarter to roughly 2.5% by the end of June. HMHC declined nearly 22% in the quarter to $15.63, due primarily to concerns about how fast school districts would adopt new K-12 learning material and what the company’s “win rate” would be in the states awarding new contracts. We believe the stock has been overly discounted on these concerns and, trading at less than 10x free cash flow, represents a compelling value.

From FPA Capital Fund (Trades, Portfolio)'s second quarter 2016 commentary.

Check out FPA Capital latest stock trades

Ratios

vs
industry
vs
history
PB Ratio 1.35
HMHC's PB Ratio is ranked higher than
50% of the 153 Companies
in the Global Education & Training Services industry.

( Industry Median: 2.07 vs. HMHC: 1.35 )
Ranked among companies with meaningful PB Ratio only.
HMHC' s PB Ratio Range Over the Past 10 Years
Min: 1.1  Med: 1.68 Max: 2.55
Current: 1.35
1.1
2.55
PS Ratio 0.80
HMHC's PS Ratio is ranked higher than
67% of the 158 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.75 vs. HMHC: 0.80 )
Ranked among companies with meaningful PS Ratio only.
HMHC' s PS Ratio Range Over the Past 10 Years
Min: 0.78  Med: 1.82 Max: 2.79
Current: 0.8
0.78
2.79
Price-to-Free-Cash-Flow 9.54
HMHC's Price-to-Free-Cash-Flow is ranked higher than
67% of the 70 Companies
in the Global Education & Training Services industry.

( Industry Median: 20.61 vs. HMHC: 9.54 )
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: 11.97 Max: 36.93
Current: 9.54
6.4
36.93
Price-to-Operating-Cash-Flow 6.41
HMHC's Price-to-Operating-Cash-Flow is ranked higher than
74% of the 87 Companies
in the Global Education & Training Services industry.

( Industry Median: 13.62 vs. HMHC: 6.41 )
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: 5.52  Med: 7.92 Max: 18.91
Current: 6.41
5.52
18.91
EV-to-EBIT -5.82
HMHC's EV-to-EBIT is ranked lower than
99.99% of the 115 Companies
in the Global Education & Training Services industry.

( Industry Median: 15.82 vs. HMHC: -5.82 )
Ranked among companies with meaningful EV-to-EBIT only.
HMHC' s EV-to-EBIT Range Over the Past 10 Years
Min: -43.1  Med: -25.7 Max: -5.5
Current: -5.82
-43.1
-5.5
EV-to-EBITDA 3085.64
HMHC's EV-to-EBITDA is ranked lower than
99.99% of the 129 Companies
in the Global Education & Training Services industry.

( Industry Median: 11.77 vs. HMHC: 3085.64 )
Ranked among companies with meaningful EV-to-EBITDA only.
HMHC' s EV-to-EBITDA Range Over the Past 10 Years
Min: -1844.5  Med: 13.1 Max: 3767.5
Current: 3085.64
-1844.5
3767.5
EV-to-Revenue 1.21
HMHC's EV-to-Revenue is ranked higher than
55% of the 157 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.79 vs. HMHC: 1.21 )
Ranked among companies with meaningful EV-to-Revenue only.
HMHC' s EV-to-Revenue Range Over the Past 10 Years
Min: 1.2  Med: 1.8 Max: 3.1
Current: 1.21
1.2
3.1
Current Ratio 1.38
HMHC's Current Ratio is ranked lower than
55% of the 147 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.25 vs. HMHC: 1.38 )
Ranked among companies with meaningful Current Ratio only.
HMHC' s Current Ratio Range Over the Past 10 Years
Min: 1.19  Med: 2.32 Max: 2.93
Current: 1.38
1.19
2.93
Quick Ratio 1.10
HMHC's Quick Ratio is ranked lower than
75% of the 147 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.21 vs. HMHC: 1.10 )
Ranked among companies with meaningful Quick Ratio only.
HMHC' s Quick Ratio Range Over the Past 10 Years
Min: 0.76  Med: 1.75 Max: 2.51
Current: 1.1
0.76
2.51
Days Inventory 82.12
HMHC's Days Inventory is ranked lower than
87% of the 86 Companies
in the Global Education & Training Services industry.

( Industry Median: 7.35 vs. HMHC: 82.12 )
Ranked among companies with meaningful Days Inventory only.
HMHC' s Days Inventory Range Over the Past 10 Years
Min: 75.94  Med: 81.5 Max: 96.53
Current: 82.12
75.94
96.53
Days Sales Outstanding 100.59
HMHC's Days Sales Outstanding is ranked lower than
81% of the 127 Companies
in the Global Education & Training Services industry.

( Industry Median: 28.99 vs. HMHC: 100.59 )
Ranked among companies with meaningful Days Sales Outstanding only.
HMHC' s Days Sales Outstanding Range Over the Past 10 Years
Min: 57.44  Med: 69.11 Max: 100.59
Current: 100.59
57.44
100.59
Days Payable 43.89
HMHC's Days Payable is ranked higher than
65% of the 102 Companies
in the Global Education & Training Services industry.

( Industry Median: 25.69 vs. HMHC: 43.89 )
Ranked among companies with meaningful Days Payable only.
HMHC' s Days Payable Range Over the Past 10 Years
Min: 22.71  Med: 39.89 Max: 51.62
Current: 43.89
22.71
51.62

Buy Back

vs
industry
vs
history
3-Year Average Share Buyback Ratio 4.20
HMHC's 3-Year Average Share Buyback Ratio is ranked higher than
93% of the 94 Companies
in the Global Education & Training Services industry.

( Industry Median: -0.70 vs. HMHC: 4.20 )
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: 4.2  Med: 0 Max: 0
Current: 4.2

Valuation & Return

vs
industry
vs
history
Price-to-Median-PS-Value 0.44
HMHC's Price-to-Median-PS-Value is ranked higher than
86% of the 140 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.09 vs. HMHC: 0.44 )
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: 0.44  Med: 1.04 Max: 1.45
Current: 0.44
0.44
1.45
Earnings Yield (Greenblatt) % -17.19
HMHC's Earnings Yield (Greenblatt) % is ranked lower than
87% of the 163 Companies
in the Global Education & Training Services industry.

( Industry Median: 4.31 vs. HMHC: -17.19 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
HMHC' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -18  Med: -3.9 Max: -2.3
Current: -17.19
-18
-2.3

More Statistics

Revenue (TTM) (Mil) $1,388.81
EPS (TTM) $ -2.10
Beta0.78
Short Percentage of Float7.20%
52-Week Range $8.05 - 13.95
Shares Outstanding (Mil)139.96

Analyst Estimate

Dec17
Revenue (Mil $)
EPS ($) -0.86
EPS without NRI ($) -0.86
EPS Growth Rate
(Future 3Y To 5Y Estimate)
N/A
Dividends per Share ($)

Piotroski F-Score Details

Piotroski F-Score: 33
Positive ROAN
Positive CFROAY
Higher ROA yoyN
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyN
Less Shares Outstanding yoyN
Higher Gross Margin yoyN
Higher Asset Turnover yoyY

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