Since January 2025, Wiley has been in a holding pattern, floating around $42.57. The stock also fell short of the S&P 500’s 7.1% gain during that period.
Is now the time to buy Wiley, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Do We Think Wiley Will Underperform?
We're swiping left on Wiley for now. Here are three reasons why we avoid WLY and a stock we'd rather own.
1. Revenue Spiraling Downwards
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Wiley struggled to consistently generate demand over the last five years as its sales dropped at a 1.7% annual rate. This was below our standards and is a sign of poor business quality. 
2. Free Cash Flow Margin Dropping
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, Wiley’s margin dropped by 6.1 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Wiley’s free cash flow margin for the trailing 12 months was 8.4%.
3. Previous Growth Initiatives Haven’t Impressed
Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).
Wiley historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 10.9%, somewhat low compared to the best business services companies that consistently pump out 25%+.
Final Judgment
We see the value of companies helping their customers, but in the case of Wiley, we’re out. With its shares trailing the market in recent months, the stock trades at $42.57 per share (or a trailing 12-month price-to-sales ratio of 1.4×). The market typically values companies like Wiley based on their anticipated profits for the next 12 months, but there aren’t enough published estimates to arrive at a reliable number. You should avoid this stock for now - better opportunities lie elsewhere. Let us point you toward the most dominant software business in the world.
Stocks We Like More Than Wiley
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
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