Houghton Mifflin Harcourt Company (HMHC) Company Bio
Houghton Mifflin Harcourt Company provides education solutions for educational institutions and consumers worldwide. The company operates in two segments, Education and Trade Publishing. The company was established in 2013 and is based in Boston, Massachusetts.
HMHC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Houghton Mifflin Harcourt Co. To summarize, we found that Houghton Mifflin Harcourt Co ranked in the 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for HMHC, they are:
The compound growth rate in the free cash flow of Houghton Mifflin Harcourt Co over the past 5.5 years is -0.17%; that's higher than merely 9.64% of free cash flow generating stocks in the Consumer Defensive sector.
45% of the company's capital comes from equity, which is greater than merely 17.42% of stocks in our cash flow based forecasting set.
Houghton Mifflin Harcourt Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.32. This coverage rate is greater than that of only 10.04% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HMHC, try EL, LNDC, KOF, WBA, and KO.
Houghton Mifflin Harcourt or HMH (NASDAQ:HMHC) has benefited tremendously from digital education trends as of late, and the company has acquired several new contracts in Q3/20 due to the rise in coronavirus cases. Since we last covered the stock in September, the stock has gone up 114.53%, but we believe...
Ophelia Research on Seeking Alpha | December 31, 2020
Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts usually don’t make them change their opinion towards a company. This time it may be different. The coronavirus pandemic destroyed the high correlations among major industries and asset classes. We are […]
MONTGOMERY, Ala., Nov. 12, 2020 /PRNewswire/ -- Montgomery Public Schools has partnered with learning technology company Houghton Mifflin Harcourt to implement Amira Learning™, the first intelligent reading assistant that listens to, assesses and tutors learners to bolster early literacy…