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.
-53.67%
-0.40
88.06%
S&P 500
16.06%
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
82.07%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
8.68
EV to EBIT
-11.12
EV to EBITDA
6.57
EV to Capital Employed
1.06
EV to Sales
1.04
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-9.54%
ROE (Latest)
-2455.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Bearish
Technical Movement
17What is working for the Company
ROCE(HY)
Highest at 0%
INTEREST COVERAGE RATIO(Q)
Highest at 207.81
OPERATING PROFIT MARGIN(Q)
Highest at 30.12 %
RAW MATERIAL COST(Y)
Fallen by -14.76% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 5.51 times
OPERATING PROFIT(Q)
Highest at USD 29.59 MM
PRE-TAX PROFIT(Q)
Highest at USD -4.18 MM
NET PROFIT(Q)
Highest at USD -11.39 MM
EPS(Q)
Highest at USD -1.67
-5What is not working for the Company
NET SALES(Q)
At USD 98.25 MM has Fallen at -18.63%
Here's what is working for Skillsoft Corp.
Interest Coverage Ratio
Highest at 207.81
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit Margin
Highest at 30.12 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At USD -4.18 MM has Grown at 80.17%
over average net sales of the previous four periods of USD -21.06 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Operating Profit
Highest at USD 29.59 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD -4.18 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD -11.39 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD -1.67
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 5.51 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -14.76% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Skillsoft Corp.
Net Sales
At USD 98.25 MM has Fallen at -18.63%
over average net sales of the previous four periods of USD 120.74 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
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