Educational Development (EDUC) AI Stock Analysis

• Market Cap: $12.53M
• Dividend Yield: N/A
• Average Volume (3M): 494.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -30.65%
• EPS Growth: -62.03%
• Country: US
• Employees: 101
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -0.15
• Shares Outstanding: 8,583,201
• 10 Day Avg. Volume: 71,292
• 30 Day Avg. Volume: 494,561
• PEG Ratio: <0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 4.33
• Enterprise Value/Market Cap: 3.15
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 2.22
• Enterprise Value/Ebitda: -20.17
• 1Y Price Target: $1.50
• Price Target Upside: -0.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $1.50 ▼(-0.66% Downside)

Educational Development's overall stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. While technical indicators show some positive momentum, the negative valuation metrics and cautious sentiment from the earnings call weigh heavily on the score. The company's efforts to manage costs and improve cash flow are positive, but strategic shifts are needed to return to growth.

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

EDUC generates revenue through multiple streams, primarily by selling educational materials directly to schools, teachers, and parents. The company may also offer subscription-based access to digital learning platforms and resources, providing ongoing value to its users. Additionally, EDUC could partner with educational institutions and organizations to develop customized curriculum solutions, earning revenue through contractual agreements. Key partnerships with educational publishers and technology providers may further enhance its product offerings and revenue potential. Overall, EDUC's earnings are bolstered by its commitment to quality education and its ability to adapt to the evolving needs of the education sector.

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	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	29.19M	34.19M	87.83M	142.23M	204.64M	118.81M
Gross Profit	17.75M	21.03M	56.07M	97.93M	144.60M	79.75M
EBITDA	-1.96M	-2.94M	1.22M	14.28M	19.43M	10.01M
Net Income	-4.55M	-5.26M	-2.50M	8.31M	12.62M	6.68M
Balance Sheet
Total Assets	74.24M	78.31M	99.94M	109.93M	88.85M	69.27M
Cash, Cash Equivalents and Short-Term Investments	754.20K	428.40K	689.10K	361.20K	1.81M	3.20M
Total Debt	30.77M	32.40M	45.53M	42.68M	16.23M	19.78M
Total Liabilities	36.02M	37.75M	54.70M	63.17M	48.59M	43.34M
Stockholders Equity	38.21M	40.57M	45.23M	46.77M	40.26M	25.93M
Cash Flow
Free Cash Flow	3.79M	2.77M	-1.52M	-24.86M	3.67M	2.55M
Operating Cash Flow	4.34M	3.21M	58.50K	-21.14M	7.82M	3.95M
Investing Cash Flow	-497.50K	-429.60K	-1.76M	-3.94M	-4.15M	-1.40M
Financing Cash Flow	-3.70M	-3.08M	2.03M	23.63M	-4.86M	-2.07M

Educational Development Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.51 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.27, and above the 200-day MA of 1.35, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 43.25 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 *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SCHL	56 Neutral	$714.44M	37.85	-1.14%	2.81%	0.97%	-197.80%
GCI	55 Neutral	$521.96M	5.48	47.54%	―	-8.00%	―
EDUC	50 Neutral	$12.53M	―	-11.27%	―	-30.65%	-62.03%
DALN	50 Neutral	―	―	―	―	-8.00%	-46.22%
LEE	49 Neutral	$24.68M	―	―	―	-5.68%	-127.26%

Educational Development Corporate Events

Educational Development Schedules Q2 2026 Earnings Call

On September 10, 2025, Educational Development Corporation announced that it will hold its fiscal year 2026 second quarter earnings call on October 9, 2025. The call will feature presentations from key executives, including CEO Craig White, and will include a live Q&A session. This announcement highlights EDC’s commitment to transparency and engagement with stakeholders, potentially impacting investor relations and market perception.

The most recent analyst rating on (EDUC) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Educational Development stock, see the EDUC Stock Forecast page.

Educational Development Extends Credit Agreement Maturity Date

On August 12, 2025, Educational Development Corporation announced the execution of the Ninth Amendment to its Existing Credit Agreement with BOKF, NA, extending the maturity date of the Revolving Loan to September 19, 2025. This extension aligns with the maturity dates of the company’s term loans related to its real estate, reflecting ongoing efforts to manage its credit agreements and explore financing solutions, including potential sales or refinancing of assets like the Hilti Complex.

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.