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Educational Development (EDUC)
:EDUC
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Educational Development
(NASDAQ:EDUC)
46Neutral
Educational Development (EDUC) vs. S&P 500 (SPY)
Market Cap
$11.03M
Dividend YieldN/A
Average Volume (3M)10.99K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth-35.97%
EPS Growth-2121.45%
CountryUS
Employees101
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)-0.67
Shares Outstanding8,583,601
10 Day Avg. Volume7,894
30 Day Avg. Volume10,995
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)0.60
P/FCF Ratio0.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Educational Development Business Overview & Revenue Model
Company DescriptionEducational Development Corp. engages in the provision of educational children's books. It operates through the following segments: Publishing; and Usborne Books & More segments. The Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty retailers, and an internal tele-sales group. The Usborne Books & More segment sells its products through a network of independent sales consultants using a combination of home shows, internet shows, and book fairs. The company was founded on August 23, 1965 and is headquartered in Tulsa, OK.
How the Company Makes MoneyEducational Development Corporation makes money through the sale of its children's books via multiple channels. The primary revenue streams include direct sales through independent sales consultants under the Usborne Books & More division, which operates on a direct selling model. Additionally, the company generates revenue through retail and wholesale partnerships, selling books to educational institutions, libraries, and bookstores. EDUC also benefits from online sales through its e-commerce platform and occasional partnerships with other publishers or educational content providers that enhance its product offerings and market reach.
Educational Development Financial Statement Overview
Summary
Educational Development is experiencing financial challenges marked by declining revenues and negative profit margins, impacting overall profitability. The balance sheet shows improved leverage, yet the debt level remains a concern amidst profitability issues. Cash flow generation is unstable, reflecting the need for strategic improvements to enhance financial health.Income Statement
The company has faced declining revenue over recent periods, with a significant drop in revenue from $204.6 million in 2021 to $36 million in TTM (Trailing-Twelve-Months). Gross profit margin remains stable at 62.6% for TTM, but the net profit margin is negative, indicating profitability challenges. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.35
Negative
Balance Sheet
The debt-to-equity ratio has improved from previous years, currently at 0.18 in TTM, reflecting reduced leverage. Stockholders' equity accounts for about 50% of total assets, suggesting a stable equity position. However, the company is still burdened with debt, which could pose risks if profitability does not improve.60
Neutral
Cash Flow
Operating cash flow is positive at $1.91 million in TTM, but significantly down from $8.75 million in the previous year. Free cash flow has also decreased, although it remains positive. The operating cash flow to net income ratio is distorted due to negative net income, indicating potential cash flow instability.45
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 36.03M | 51.03M | 87.83M | 142.23M | 204.64M | 113.01M | Gross Profit |
| 22.57M | 32.98M | 56.07M | 97.93M | 144.60M | 76.15M | EBIT |
| -4.13M | -5.90M | 23.09M | 12.15M | 17.79M | 8.64M | EBITDA |
| -3.44M | 5.98M | 1.22M | 14.28M | 19.43M | 10.07M | Net Income Common Stockholders |
| -5.53M | 546.40K | -2.50M | 8.31M | 12.62M | 5.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.29M | 844.50K | 689.10K | 361.20K | 1.81M | 3.00M | Total Assets |
| 83.60M | 90.11M | 99.94M | 109.93M | 88.85M | 64.70M | Total Debt |
| 7.35M | 35.55M | 45.53M | 42.68M | 16.23M | 18.81M | Net Debt |
| 5.07M | 34.71M | 44.84M | 42.31M | 14.42M | 15.81M | Total Liabilities |
| 41.80M | 44.65M | 54.70M | 63.17M | 48.59M | 35.31M | Stockholders Equity |
| 41.81M | 45.45M | 45.23M | 46.77M | 40.26M | 29.39M |
| Cash Flow | Free Cash Flow | ||||
| 1.46M | 7.93M | -1.52M | -24.86M | 3.67M | 3.61M | Operating Cash Flow |
| 1.91M | 8.75M | 58.50K | -21.14M | 7.82M | 4.24M | Investing Cash Flow |
| -444.40K | 4.04M | -1.76M | -3.94M | -4.15M | -638.80K | Financing Cash Flow |
| -2.48M | -12.20M | 2.03M | 23.63M | -4.86M | -3.81M |
Educational Development Technical Analysis
Negative
1.28
Price Trends
1.55
Negative
1.72
Negative
1.87
Negative
Market Momentum
-0.09
Positive
25.65
Positive
7.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDUC, the sentiment is Negative. The current price of 1.28 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.55, and below the 200-day MA of 1.87, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 25.65 is Positive, neither overbought nor oversold. The STOCH value of 7.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDUC.
Educational Development Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.08T | 36.02 | 24.29% | ― | 10.99% | 91.61% | |
59 Neutral | $534.76M | ― | -0.42% | 4.20% | -3.89% | -106.78% | |
58 Neutral | $29.51B | -0.64 | -15.44% | 4.07% | 2.03% | -50.31% | |
46 Neutral | $11.03M | ― | -12.44% | ― | -35.97% | -2121.45% |
* Communication Services Sector Average
Performance Comparison
EDUC
Educational Development
1.25
-0.66
-34.55%
AMZN
Amazon
193.89
15.14
8.47%
SCHL
Scholastic
20.05
-15.39
-43.43%
Educational Development Earnings Call Summary
Earnings Call Date: Jan 13, 2025 | % Change Since: -22.42% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Negative
The earnings call reflected significant challenges, including a steep decline in revenue and brand partner numbers, increased losses, and negative impacts of discounting on margins. However, there are strategic efforts underway, such as the shipping subscription launch and StoryMaker Summits, and the potential positive impact of the Hilti Complex sale. The company is focused on returning to a stronger financial position.Highlights
Shipping Subscription Launch
In November, PaperPie introduced a membership program offering reduced or free shipping and value-added perks, receiving positive feedback and supporting customer relationships and revenue.
StoryMaker Summits Announcement
PaperPie plans to host 5 StoryMaker Summits in various U.S. cities in 2025, promoting deeper engagement with brand partners compared to a single national convention.
Progress on Hilti Complex Sale
The asset sale agreement for the Hilti Complex is in due diligence, with completion expected by March. Proceeds will be used to clear bank debt, improve cash position, and exclude 17 acres of excess land to strengthen the balance sheet.
Lowlights
Significant Revenue Decline
Net revenues for the quarter were $11.1 million compared to $16.9 million in the previous year, and year-to-date revenues were $27.6 million compared to $42.1 million last year.
Decreased Brand Partner Numbers
Average active brand partners totaled 12,400 compared to 16,400 in the previous year, reflecting challenges in maintaining partner engagement.
Increased Losses
The company reported a net loss of $800,000 for the quarter compared to a net income of $2 million last year. Year-to-date net loss after taxes totaled $3.9 million compared to income of $2.2 million.
Gross Margin Impact from Discounting
Strategic discounting to boost sales and reduce inventory negatively affected gross margins and bottom line, reflecting a short-term strategy to improve cash flow.
Company Guidance
During the Educational Development Corporation's Q3 2025 earnings call, the company reported a challenging financial period. Net revenues for the quarter were $11.1 million, down from $16.9 million the previous year. The company faced a net loss of $800,000 compared to a net income of $2 million in the same quarter last year, with a loss per share of $0.10 against last year's earnings per share of $0.24. Year-to-date figures showed net revenues of $27.6 million versus $42.1 million previously, and a net loss of $3.9 million compared to an income of $2.2 million. Average active brand partners dropped to 12,400 from 16,400. Despite these setbacks, the company is focused on operational improvements, including reducing excess inventory and borrowing, and pursuing strategic sales and marketing initiatives like the shipping subscription launch and StoryMaker Summits to drive future growth.Educational Development Corporate Events
Executive/Board ChangesShareholder MeetingsRegulatory Filings and Compliance
Leadership Transition at Educational Development Corporation
Neutral
Jan 14, 2025
On January 8, 2025, Randall White resigned as Director and Chairman of the Board at EDC, a position he held since 1986. Craig White, the current CEO and President, was unanimously voted by the Board to fill the Chairman position. The board plans to appoint a new director by the next shareholders meeting in July 2025, maintaining compliance with NASDAQ’s listing requirements.
Business Operations and StrategyFinancial Disclosures
Educational Development Reports Q3 Revenue Decline and Strategy
Negative
Jan 13, 2025
Educational Development Corporation reported a significant decline in its fiscal 2025 third-quarter financial results compared to the previous year, with net revenues dropping to $11.1 million from $16.9 million and a net loss of $0.8 million compared to a $2.0 million profit last year. CEO Craig White highlighted strategic measures taken to restore profitability, including cost reductions and efficiency gains, leasing office space, and consolidating warehouse operations. The sale of the Hilti Complex is expected to eliminate the company’s debt, signaling a move towards improved financial stability and ongoing commitment to profitability.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.