Value Line, Inc. (VALU) AI Stock Analysis
VALU AI stock analysis summary
AI ResearchValue Line, Inc. (VALU) provides investment periodicals, financial data, and research software to retail and institutional investors. The company generated $32.9M in trailing twelve-month revenue with a high profit margin of 60.3%, supported by a net cash position of $86.5M. However, revenue has steadily contracted over recent years, declining at a 5-year CAGR of -3.7% through FY2026.
- Market cap
- $404.0M
- Revenue (TTM)
- $32.9M
- P/E
- 20.4x fwd 21.7x
- 1Y return
- 14.6% S&P 500 16.8%
- Avg. target
- —
Bull case
- Value Line maintains a solid balance sheet featuring $86.5M in net cash and a debt-to-equity ratio of just 0.02 as of July 31, 2026.
- The company delivered $18.6M in free cash flow in FY2026, supporting a 3.25% dividend yield with a 43-year payout history.
- Net margin reached 64.7% in FY2026, generating $21.6M in net income despite broader top-line declines.
Bear case
- Revenue has contracted over five consecutive years, registering a 5-year CAGR of -3.7% from FY2021 through FY2026.
- Quarterly earnings fell 27.7% year-over-year in the quarter ended July 31, 2026, alongside a 6.4% drop in quarterly sales.
- Valuation multiples are elevated relative to peers, with an EV/EBITDA of 56.0x compared to the US-listed Financial Services median of 11.7x.
What Value Line does
Value Line, Inc. operates as a provider of investment periodicals and related publications in the United States. Established in 1931, the company offers research and analysis on stocks, mutual funds, exchange traded funds (ETFs), and options. Its flagship publications include The Value Line Investment Survey, The Value Line Investment Survey - Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus. In addition, it produces specialized newsletters such as Value Line Select and The Value Line Climate Change Investing Service. Value Line also delivers digital tools via the Value Line Research Center platform, investment software like The Value Line Investment Analyzer, and institutional financial databases.
Growth and profitability
Value Line has experienced multi-year top-line contraction, with revenue falling from $40.5M in FY2022 to $33.4M in FY2026. Annual revenue declined 4.7% in FY2026, accompanied by a drop in gross margin to 43.9% and operating margin to 12.1%. Despite operating margin pressure, net income rose to $21.6M in FY2026, delivering a net margin of 64.7% and EPS of $2.30. In the latest quarter ended July 31, 2026, quarterly revenue fell 6.4% year-over-year while quarterly earnings declined 27.7%. For the trailing twelve months, revenue stood at $32.9M with EPS of $2.11 and an operating margin of 12.8%.
Balance sheet and cash flow
As of July 31, 2026, Value Line maintained a conservative balance sheet with $88.5M in cash and short-term investments against $1.9M in total debt, yielding net cash of $86.5M. The current ratio stood at 4.09, and the debt-to-equity ratio was 0.02 against shareholders' equity of $109.2M. In FY2026, the company generated $18.6M in operating cash flow and free cash flow of $18.6M. Cash deployment during FY2026 included $12.2M paid in dividends and $928,000 directed toward share buybacks.
Valuation and performance
At $43.06 per share, Value Line trades at a trailing P/E of 20.4x and a forward P/E of 21.7x, both above the US-listed Financial Services median of 12.1x and 10.8x, respectively. The stock's price-to-sales multiple of 12.3x and EV/EBITDA of 56.0x also stand well above peer group medians of 3.2x and 11.7x. Over the past year, the shares gained 14.6%, trailing the S&P 500 return of 16.8%. Over a 5-year period, the stock returned 51.6% compared to 83.0% for the S&P 500.
VALU dividend
Value Line pays a quarterly dividend totaling $1.40 annually, translating to a dividend yield of 3.25% as of October 16, 2026. The company has paid consecutive dividends for 43 years, achieving a 5-year annualized dividend growth rate of 9.0%. The trailing payout ratio stands at 63.9%, and its last ex-dividend date was July 27, 2026.
What analysts expect
No sell-side analyst rating counts, price targets, or forward earnings estimates are reported for Value Line. For the trailing twelve months ended July 31, 2026, the company recorded EPS of $2.11, following full-year FY2026 EPS of $2.30. The company's next earnings report date is not scheduled in the recorded figures.
Key risks and what to watch
- Operating margin compressed from 26.7% in FY2022 to 12.1% in FY2026, signaling pressure on primary business operations.
- Insider ownership stands at 92.1%, leaving a public float and institutional ownership of only 6.0%.
- Revenue fell to $32.9M on a trailing twelve-month basis, continuing a multi-year downward trend from $40.5M in FY2022.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this VALU AI stock analysis
This page is an AI-written research summary of Value Line, Inc. (VALU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: VALU income statement, VALU balance sheet, VALU key metrics, VALU chart. See the VALU stock overview for the latest quote and news.
VALU AI stock analysis FAQ
What dividend does Value Line pay?
Value Line pays an annualized dividend of $1.40 per share, which equates to a 3.25% yield as of October 16, 2026. The company has paid dividends for 43 consecutive years with a trailing payout ratio of 63.9%.
How much debt does Value Line have?
As of July 31, 2026, Value Line held $1.9M in total debt against $88.5M in cash and short-term investments, resulting in a net cash position of $86.5M.
Who owns most of Value Line's stock?
Insiders own 92.1% of Value Line's shares, while institutional investors hold 6.0%, and short interest accounts for 2.0% of the float.
How has Value Line performed compared to the broader market?
Over the past 1-year period, Value Line returned 14.6% versus 16.8% for the S&P 500. Over 5 years, the stock gained 51.6% compared to the index's 83.0% gain.