(SCHL) Scholastic - Overview
Sector: Communication Services | Industry: Publishing | Exchange: NASDAQ (USA) | Market Cap: 715m USD | Total Return: 128.2% in 12m
Industry Rotation: +3.5
Avg Turnover: 17.0M
EPS Trend: -5.9%
Qual. Beats: 0
Rev. Trend: -8.9%
Qual. Beats: 0
Warnings
Interest Coverage Ratio 1.0 is critical
Tailwinds
Shakeout, Leader, Tailwind, Pullback Retrace
Scholastic Corporation (NASDAQ: SCHL) is a global publisher and distributor of children’s media, educational materials, and books. The company operates through four primary segments: Childrens Book Publishing and Distribution, Education Solutions, Entertainment, and International. Its portfolio includes major proprietary franchises such as Harry Potter and The Hunger Games, alongside licensed properties like Pokémon and Peppa Pig.
The business model relies heavily on a specialized direct-to-school distribution network, utilizing book clubs and book fairs to reach its core demographic. This vertical integration within the educational system provides a competitive moat in the publishing sector, where traditional retail channels often face higher volatility. As a dominant player in the K-12 publishing market, Scholastic also produces classroom magazines and supplemental curriculum materials used by educators worldwide.
For a more detailed look at the company’s financial health and valuation, consider reviewing the latest metrics on ValueRay.
Founded in 1920 and headquartered in New York, the corporation maintains a presence in international markets by publishing content in multiple languages, including English, Hindi, and French. Its entertainment division further leverages intellectual property through the production and licensing of film and television content for families.
- School book fair participation rates directly impact high-margin distribution revenue
- Rising paper and logistics costs compress operating margins for print publishing
- Intellectual property licensing and media production drive long-term brand monetization
- K-12 educational spending budgets influence classroom magazine and supplemental material sales
- Digital transformation of book clubs determines customer acquisition and retention costs
| Net Income: 62.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.14 > 1.0 |
| NWC/Revenue: 7.08% < 20% (prev 8.81%; Δ -1.74% < -1%) |
| CFO/TA 0.04 > 3% & CFO 67.8m > Net Income 62.7m |
| Net Debt (180.0m) to EBITDA (106.1m): 1.70 < 3 |
| Current Ratio: 1.18 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.8m) vs 12m ago -7.19% < -2% |
| Gross Margin: 52.32% > 18% (prev 0.52%; Δ 5.18k% > 0.5%) |
| Asset Turnover: 86.27% > 50% (prev 81.18%; Δ 5.09% > 0%) |
| Interest Coverage Ratio: 0.97 > 6 (EBITDA TTM 106.1m / Interest Expense TTM 14.6m) |
| A: 0.06 (Total Current Assets 735.3m - Total Current Liabilities 621.1m) / Total Assets 1.78b |
| B: 0.58 (Retained Earnings 1.03b / Total Assets 1.78b) |
| C: 0.01 (EBIT TTM 14.1m / Avg Total Assets 1.87b) |
| D: 1.10 (Book Value of Equity 999.1m / Total Liabilities 908.9m) |
| Altman-Z'' Score: 3.51 = A |
| DSRI: 0.88 (Receivables 290.6m/327.3m, Revenue 1.61b/1.59b) |
| GMI: 0.99 (GM 52.32% / 51.81%) |
| AQI: 0.80 (AQ_t 0.24 / AQ_t-1 0.30) |
| SGI: 1.01 (Revenue 1.61b / 1.59b) |
| TATA: -0.00 (NI 62.7m - CFO 67.8m) / TA 1.78b) |
| Beneish M-Score: -3.25 (Cap -4..+1) = AA |
Over the past week, the price has changed by -1.00%, over one month by +0.98%, over three months by +17.73% and over the past year by +128.23%.
| Analysts Target Price | 41 | 3.3% |
P/E Forward = 14.3062
P/S = 0.4427
P/B = 0.8483
P/EG = 1.796
Revenue TTM = 1.61b USD
EBIT TTM = 14.1m USD
EBITDA TTM = 106.1m USD
Long Term Debt = 250.0m USD (from longTermDebt, last fiscal year)
Short Term Debt = 33.3m USD (from shortTermDebt, last quarter)
Debt = 284.6m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 180.0m USD (from netDebt column, last quarter)
Enterprise Value = 894.5m USD (714.5m + Debt 284.6m - CCE 104.6m)
Interest Coverage Ratio = 0.97 (Ebit TTM 14.1m / Interest Expense TTM 14.6m)
EV/FCF = 40.48x (Enterprise Value 894.5m / FCF TTM 22.1m)
FCF Yield = 2.47% (FCF TTM 22.1m / Enterprise Value 894.5m)
FCF Margin = 1.37% (FCF TTM 22.1m / Revenue TTM 1.61b)
Net Margin = 3.88% (Net Income TTM 62.7m / Revenue TTM 1.61b)
Gross Margin = 52.32% ((Revenue TTM 1.61b - Cost of Revenue TTM 769.6m) / Revenue TTM)
Gross Margin QoQ = 50.41% (prev 56.07%)
Tobins Q-Ratio = 0.50 (Enterprise Value 894.5m / Total Assets 1.78b)
Interest Expense / Debt = 0.28% (Interest Expense 800k / Debt 284.6m)
Taxrate = 31.92% (29.3m / 91.8m)
NOPAT = 9.60m (EBIT 14.1m * (1 - 31.92%))
Current Ratio = 1.18 (Total Current Assets 735.3m / Total Current Liabilities 621.1m)
Debt / Equity = 0.33 (Debt 284.6m / totalStockholderEquity, last quarter 871.9m)
Debt / EBITDA = 1.70 (Net Debt 180.0m / EBITDA 106.1m)
Debt / FCF = 8.14 (Net Debt 180.0m / FCF TTM 22.1m)
Total Stockholder Equity = 906.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.35% (Net Income 62.7m / Total Assets 1.78b)
RoE = 6.91% (Net Income TTM 62.7m / Total Stockholder Equity 906.9m)
RoCE = 1.22% (EBIT 14.1m / Capital Employed (Equity 906.9m + L.T.Debt 250.0m))
RoIC = 0.85% (NOPAT 9.60m / Invested Capital 1.13b)
WACC = 6.46% (E(714.5m)/V(999.1m) * Re(8.96%) + D(284.6m)/V(999.1m) * Rd(0.28%) * (1-Tc(0.32)))
Discount Rate = 8.96% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -80.90 | Cagr: -8.36%
[DCF] Terminal Value 82.61% ; FCFF base≈24.1m ; Y1≈20.8m ; Y5≈16.3m
[DCF] Fair Price = 14.17 (EV 429.8m - Net Debt 180.0m = Equity 249.8m / Shares 17.6m; r=6.46% [WACC]; 5y FCF grow -16.92% → 3.0% )
EPS Correlation: -5.89 | EPS CAGR: -12.27% | SUE: 0.67 | # QB: 0
Revenue Correlation: -8.91 | Revenue CAGR: -11.23% | SUE: -0.21 | # QB: 0
EPS next Quarter (2026-08-31): EPS=-3.29 | Chg30d=-5.61% | Revisions=-20% | Analysts=2
EPS current Year (2026-05-31): EPS=1.81 | Chg30d=-3.46% | Revisions=-20% | GrowthEPS=+278.1% | GrowthRev=-0.2%
EPS next Year (2027-05-31): EPS=2.67 | Chg30d=-4.64% | Revisions=-20% | GrowthEPS=+47.1% | GrowthRev=+3.9%
[Analyst] Revisions Ratio: -20%