Executive Summary
Value Line Inc reported QQ4 2024 revenue of $9.003 million, down -7.36% year-over-year and -1.40% quarter-over-quarter. Despite a material decline in gross profit and operating income, the company posted a solid net income of $4.784 million and earnings per share of $0.51, driven largely by a substantial non-operating income line (totalOtherIncomeExpensesNet of $5.02 million) that more than offset operating shortfalls. The result is a paradoxical bottom-line improvement amid operating margin pressure, underscoring the importance of non-operating items in the quarter and the company’s strong liquidity position.
From a cash-flow perspective,(Value Line) generated $3.763 million of net cash from operating activities and $3.719 million of free cash flow for QQ4 2024, with cash and cash equivalents at period-end of $4.39 million and total cash plus short-term investments of $68.345 million. The balance sheet remains conservatively levered, with a modest total debt of $4.784 million and a very low debt ratio (0.0352) alongside a healthy equity base of $90.793 million. This affords a cushion to weather ongoing operating-normalization and to fund potential growth initiatives in digital and data-product offerings.
The current market environment for specialized financial-data publishers remains niche but stable, with VALU trading at price-to-book around 3.76 and a trailing price-earnings multiple near 17.8, implying modest valuation discipline against a diversified, subscription-based revenue model. Management commentary fields are unavailable in the provided data; as a result, the forward-looking narrative hinges on qualitative assessment of operating leverage, product diversification, and the potential sustainability of the non-operating income observed this quarter.
Key Performance Indicators
QoQ: -5.87% | YoY:-35.18%
QoQ: -33.33% | YoY:-46.03%
QoQ: -18.71% | YoY:18.62%
QoQ: -17.74% | YoY:18.60%
Key Insights
Revenue: $9.003 million, YoY -7.36%, QoQ -1.40%
Gross Profit: $3.947 million, Gross Margin 43.84%, YoY -35.18%, QoQ -5.87%
Operating Income: $1.488 million, Operating Margin 16.53%, YoY -46.03%, QoQ -33.33%
Net Income: $4.784 million, Net Margin 53.14%, YoY +18.62%, QoQ -18.71%
EPS: $0.51, Diluted EPS $0.51, YoY +18.60%, QoQ -17.74%
EBITDA: $1.843 million, EBITDA Margin ~20.47%
Balance Sheet: Total Assets $136.035 million; Total Liabilities $45.242 million; Total Stockholders’ Equity $90.793 m...
Financial Highlights
Revenue: $9.003 million, YoY -7.36%, QoQ -1.40%
Gross Profit: $3.947 million, Gross Margin 43.84%, YoY -35.18%, QoQ -5.87%
Operating Income: $1.488 million, Operating Margin 16.53%, YoY -46.03%, QoQ -33.33%
Net Income: $4.784 million, Net Margin 53.14%, YoY +18.62%, QoQ -18.71%
EPS: $0.51, Diluted EPS $0.51, YoY +18.60%, QoQ -17.74%
EBITDA: $1.843 million, EBITDA Margin ~20.47%
Balance Sheet: Total Assets $136.035 million; Total Liabilities $45.242 million; Total Stockholders’ Equity $90.793 million
Liquidity: Cash & Short-Term Investments $68.345 million; Cash at End of Period $4.390 million; Net Debt $0.394 million; Current Ratio 3.19
Cash Flows: Net Cash Provided by Operating Activities $3.763 million; Free Cash Flow $3.719 million; Cash Flow from Investing Activities $(2.329) million; Cash Flow from Financing Activities $(2.824) million; Cash Burn from FX $(5.131) million
Capital Allocation: Dividends Paid $(2.639) million; Share Repurchases $(0.185) million; Free Cash Flow Yield (per share) $0.395; Dividend Payout Ratio 55.2%
Valuation Signals: P/E ~17.8x, P/B ~3.76x, Dividend Yield ~0.77% (as of QQ4 2024 data)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.00M |
-7.36% |
-1.40% |
| Gross Profit |
3.95M |
-35.18% |
-5.87% |
| Operating Income |
1.49M |
-46.03% |
-33.33% |
| Net Income |
4.78M |
18.62% |
-18.71% |
| EPS |
0.51 |
18.60% |
-17.74% |
Key Financial Ratios
operatingProfitMargin
16.5%
operatingCashFlowPerShare
$0.4
freeCashFlowPerShare
$0.4
dividendPayoutRatio
55.2%
Management Commentary
No earnings call transcript data provided in the supplied materials. Consequently, no management quotes or theme-based highlights could be extracted. If you provide the transcript, I can extract themes by strategy, operations, and market conditions with contextual significance.
Forward Guidance
No formal numeric guidance was disclosed in the provided materials for QQ4 2024. Given the split between operating performance and a material non-operating income contribution this quarter, investors should monitor: (i) sustainability of recurring revenue streams and renewal/retention rates for Value Line’s publication/data services, (ii) productivity of operating expense base and any changes in marketing or product development spend, (iii) stability/realization of non-operating income drivers, (iv) balance sheet resilience amid potential economic slowdowns, and (v) cadence of capital allocation (dividends, buybacks) in relation to free cash flow and potential growth initiatives.