Educational Development (EDUC) AI Stock Analysis

• Market Cap: $11.57M
• Dividend Yield: N/A
• Average Volume (3M): 5.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -32.68%
• EPS Growth: -3656.21%
• Country: US
• Employees: 101
• Sector: Communication Services
• Sector Strength: 83
• Industry: Publishing
• EPS (TTM): -0.13
• Shares Outstanding: 8,583,201
• 10 Day Avg. Volume: 6,191
• 30 Day Avg. Volume: 5,787
• PEG Ratio: -0.71
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.96
• Enterprise Value/Market Cap: 3.59
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: -4.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $1.50 ▲(11.11%Upside)

The low overall score is primarily driven by the company's poor financial performance, characterized by declining revenues, sustained losses, and negative profitability metrics. Technical analysis and earnings call insights provide slight moderation, indicating stability in stock price and strategic efforts to mitigate financial challenges. However, the valuation remains unattractive due to negative earnings and lack of dividends, emphasizing the need for substantial operational improvements.

Educational Development Business Overview & Revenue Model

Company Description

Educational Development Corporation, a publishing company, operates as a trade co-publisher of educational children's books in the United States. It operates through two segments, Publishing and Usborne Books & More (UBAM). The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as internet-linked books comprising science and math titles, and chapter books and novels. Educational Development Corporation markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers, and its internal tele-sales group; and through a network of independent sales consultants through internet sales, direct sales, home shows, and book fairs. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

Educational Development Corporation makes money through the sale of children's books via two primary channels: retail and direct selling. In the retail channel, EDUC distributes its products to a variety of retailers, including independent bookstores, major book chains, and online platforms. The direct selling channel operates under the Usborne Books & More brand, where independent consultants sell books directly to consumers through home parties, book fairs, and online events. This dual-channel approach allows EDUC to reach a broad audience and leverage various sales strategies. The company's revenue is also supported by partnerships with schools and libraries, which contribute to bulk purchasing agreements and recurring orders.

Educational Development Financial Statement Overview

Summary

Educational Development is facing substantial financial challenges with declining revenues and sustained losses impacting profitability. While cost management efforts have stabilized gross margins, negative operating margins and declining equity raise concerns about future viability. The balance sheet reflects manageable leverage, but the negative ROE and declining asset base are worrying. Cash flow management shows some resilience, with positive free cash flow providing a buffer against ongoing losses. Overall, the company needs to address its revenue decline and operational inefficiencies to improve its financial health.

Income Statement

The company is experiencing a challenging period with declining revenues and negative profitability. The TTM data shows a significant drop in total revenue to $31.3 million from $87.8 million in 2023, reflecting a revenue decline over time. The gross profit margin is at 59.76%, indicating better cost management at the gross level, but the net profit margin is negative due to continued net losses, highlighting struggles with operating expenses and interest costs. The EBIT margin and EBITDA margin are both negative, indicating operational difficulties and a reliance on cost savings at the EBITDA level.

Balance Sheet

The balance sheet shows a moderate position with a Debt-to-Equity Ratio of 0.79, suggesting a manageable level of leverage. However, the Return on Equity (ROE) is negative due to net losses, showing inefficiencies in generating returns from equity. The equity ratio is 51.75%, indicating a reasonable level of equity financing relative to total assets, but the declining assets and equity over the period raise concerns about long-term stability.

Cash Flow

The company demonstrates some positive cash flow management with a Free Cash Flow of $2.87 million in the TTM, showing improvement from the previous year. The Operating Cash Flow to Net Income Ratio is negative, reflecting operational cash flow generation despite net losses. However, the Free Cash Flow to Net Income Ratio is positive, indicating that the company is managing to convert its losses into free cash flow, providing some cushion despite profitability issues.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.19M	51.03M	87.83M	142.23M	204.64M
Gross Profit	21.03M	32.98M	56.07M	97.93M	144.60M
EBITDA	-2.94M	5.98M	1.22M	14.28M	19.43M
Net Income	-5.26M	546.40K	-2.50M	8.31M	12.62M
Balance Sheet
Total Assets	78.31M	90.11M	99.94M	109.93M	88.85M
Cash, Cash Equivalents and Short-Term Investments	428.40K	844.50K	689.10K	361.20K	1.81M
Total Debt	32.40M	35.55M	45.53M	42.68M	16.23M
Total Liabilities	37.75M	44.65M	54.70M	63.17M	48.59M
Stockholders Equity	40.57M	45.45M	45.23M	46.77M	40.26M
Cash Flow
Free Cash Flow	2.77M	7.93M	-1.52M	-24.86M	3.67M
Operating Cash Flow	3.21M	8.75M	58.50K	-21.14M	7.82M
Investing Cash Flow	-429.60K	4.04M	-1.76M	-3.94M	-4.15M
Financing Cash Flow	-3.08M	-12.20M	2.03M	23.63M	-4.86M

Educational Development Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDUC, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 1.33, and below the 200-day MA of 1.55, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.26 is Neutral, neither overbought nor oversold. The STOCH value of 75.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDUC.

Educational Development Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$41.97B	-1.66	-12.07%	3.33%	2.07%	-69.32%
MNY	58 Neutral	$84.68M	―	-48.12%	―	4.11%	78.58%
CCG	56 Neutral	$66.24M	―	-16.65%	―	105.31%	95.66%
EDUC	49 Neutral	$11.57M	―	-12.07%	―	-32.68%	-3656.21%
LVO	48 Neutral	$81.97M	―	154.70%	―	-3.41%	-18.54%
FLNT	45 Neutral	$52.71M	―	-123.16%	―	-15.07%	33.40%
TOON	42 Neutral	$36.90M	―	-55.07%	―	1.15%	71.71%

Educational Development Corporate Events

Educational Development Elects New Director at Annual Meeting

At the annual meeting of stockholders held on July 2, 2025, Educational Development Company elected Dr. Amy N. Emerson as a Class III Director for a three-year term. Additionally, the stockholders ratified the appointment of HoganTaylor LLP as the independent registered public accounting firm for the year ending February 28, 2026.

Educational Development Reports Decline in Q1 Revenues

On July 7, 2025, Educational Development Corporation reported its fiscal 2026 first quarter financial results, showing a decline in net revenues to $7.1 million from $10.0 million the previous year. The company executed several product discount promotions to increase cash flow, which impacted gross margins. Despite lower sales, EDC reduced its losses compared to the previous year and is focused on turning excess inventory into cash to strengthen its financial position. The company is also in the process of selling the Hilti Complex, which is expected to retire outstanding debt and provide financial flexibility for future growth.

Educational Development Amends Real Estate Contract

On June 26, 2025, Educational Development Corporation executed an amendment to its commercial real estate contract with TG OTC, LLC for the sale of its headquarters and distribution warehouse in Tulsa, Oklahoma. The amendment extends the due diligence period to September 11, 2025, and changes the expected closing date to ten days after the due diligence period, potentially impacting the company’s operational logistics and financial planning.

Educational Development Schedules Q1 2026 Earnings Call

On June 9, 2025, Educational Development Corporation announced that it will hold its fiscal year 2026 first quarter earnings call on July 7, 2025. The call will include a presentation of the company’s first quarter results by key executives and a live Q&A session, indicating the company’s commitment to transparency and stakeholder engagement.

Educational Development Reports Fiscal 2025 Financial Results

On May 14, 2025, Educational Development Corporation’s Board of Directors approved the addition of Steven Hooser to its Board, transitioning him from his role as the company’s Investor Relations advisor. The company also appointed Dr. Amy Emerson as a Class III Director. On May 19, 2025, EDC reported its fiscal 2025 financial results, highlighting a significant reduction in net revenues and an overall net loss compared to the previous year. Despite these challenges, EDC focused on reducing debt and inventory, generating cash flow to improve its financial position. The company also executed a Purchase Sale Agreement for its headquarters, aiming to eliminate bank debts and enhance operational liquidity.

Educational Development Reschedules 2025 Earnings Call

On May 5, 2025, Educational Development Corporation announced a change in the date for its fiscal year 2025 earnings call, which will now take place on May 19, 2025. The call will feature presentations from key executives and a live Q&A session, providing insights into the company’s year-end results and future outlook.