Why is Skillsoft Corp. ?
1
Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months
- Poor long term growth as Operating profit has grown by an annual rate -307.05% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.71 times
2
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -67.19%, its profits have risen by 25.3%
3
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -67.19% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Skillsoft Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Skillsoft Corp.
-80.73%
-0.40
88.06%
S&P 500
13.5%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
248.87%
EBIT Growth (5y)
-309.30%
EBIT to Interest (avg)
-1.66
Debt to EBITDA (avg)
6.71
Net Debt to Equity (avg)
7.16
Sales to Capital Employed (avg)
0.71
Tax Ratio
3.59%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
81.83%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
8.15
EV to EBIT
-11.08
EV to EBITDA
6.54
EV to Capital Employed
1.06
EV to Sales
1.03
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-9.54%
ROE (Latest)
-2455.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Bearish
Technical Movement
5What is working for the Company
NET PROFIT(Q)
Highest at USD -14.86 MM
-6What is not working for the Company
ROCE(HY)
Lowest at -215.67%
DEBT-EQUITY RATIO
(HY)
Highest at 12,538.84 %
RAW MATERIAL COST(Y)
Grown by 7.89% (YoY
EPS(Q)
Lowest at USD -4.74
Here's what is working for Skillsoft Corp.
Net Profit
Highest at USD -14.86 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD -14.86 MM has Grown at 41.61%
over average net sales of the previous four periods of USD -25.45 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Here's what is not working for Skillsoft Corp.
Debt-Equity Ratio
Highest at 12,538.84 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
EPS
Lowest at USD -4.74
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 7.89% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






