Educational Development (EDUC) AI Stock Analysis

• Market Cap: $11.42M
• Dividend Yield: N/A
• Average Volume (3M): 7.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -33.00%
• EPS Growth: -1052.42%
• Country: US
• Employees: 101
• Sector: Communication Services
• Sector Strength: 87
• Industry: Publishing
• EPS (TTM): -0.16
• Shares Outstanding: 8,583,201
• 10 Day Avg. Volume: 4,488
• 30 Day Avg. Volume: 7,323
• PEG Ratio: -0.07
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.21
• Enterprise Value/Market Cap: 3.82
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 2.08
• Enterprise Value/Ebitda: -3.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: $1.50 ▲(12.78%Upside)

Educational Development's stock is significantly impacted by poor financial performance and valuation, reflecting declining revenues and profitability issues. While technical analysis and initiatives to reduce debt offer some positives, the overall outlook remains challenging.

Educational Development Business Overview & Revenue Model

Company Description

Educational Development Corporation (EDUC) is a publisher and distributor of children's books, with a focus on educational and engaging content. The company operates primarily in the publishing and distribution sector, offering a wide range of books that aim to entertain and educate young readers. EDUC is well-known for its extensive catalog, which includes picture books, activity books, and educational kits.

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 significant financial challenges with a sharp revenue decline and negative profitability. The increasing debt-to-equity ratio and erratic cash flow further emphasize the financial instability.

Income Statement

The company has experienced significant revenue decline over the past years, with a sharp drop from $204.6 million in 2021 to $34.2 million in 2025. Consequentially, the gross profit margin has decreased, indicating reduced efficiency in managing production costs. Negative EBIT and net income margins in recent years highlight profitability challenges.

Balance Sheet

The balance sheet shows a stable equity position, though the debt-to-equity ratio has increased due to declining equity, indicating rising leverage and potential risk. The equity ratio remains moderately healthy, suggesting the company is maintaining some financial stability despite declining performance.

Cash Flow

The company has struggled with cash flow, particularly with a significant drop in operating and free cash flow levels. The free cash flow to net income ratio has been erratic, showing periods of negative cash flow, reflecting challenges in maintaining liquidity amidst declining net income.

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: Negative
• Last Price: 1.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.33 is below the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.31, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDUC.

Educational Development Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
LVO	58 Neutral	$82.75M	―	154.70%	―	11.43%	26.78%
MNY	56 Neutral	$37.76M	―	-48.12%	―	345.36%	-650.95%
TOON	48 Neutral	$35.13M	―	-55.07%	―	1.15%	71.71%
CCG	47 Neutral	$61.39M	―	-16.65%	―	105.31%	95.66%
EDUC	43 Neutral	$11.42M	―	-12.24%	―	-33.00%	-1052.42%
FLNT	41 Neutral	$42.37M	―	-123.16%	―	-15.07%	33.40%

Educational Development Corporate Events

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.

Educational Development Announces FY 2025 Earnings Call

On April 22, 2025, Educational Development Corporation announced its fiscal year 2025 earnings call scheduled for May 21, 2025, and its Annual Meeting of Shareholders on July 2, 2025. The earnings call will feature presentations by key executives and a live Q&A session, while the shareholders’ meeting will allow eligible shareholders to vote on proxy matters. The announcement outlines the company’s commitment to transparency and engagement with its stakeholders.