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Scholastic Corp. (SCHL)
NASDAQ:SCHL
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Scholastic
(NASDAQ:SCHL)
65Neutral
Scholastic (SCHL) vs. S&P 500 (SPY)
Market Cap
$429.20M
Dividend Yield4.95%
Average Volume (3M)493.67K
Price to Earnings (P/E)27.0
Beta (1Y)0.94
Revenue Growth-3.10%
EPS Growth-58.47%
CountryUS
Employees4,770
SectorCommunication Services
Sector Strength74
IndustryPublishing
Share Statistics
EPS (TTM)0.60
Shares Outstanding25,858,398
10 Day Avg. Volume393,591
30 Day Avg. Volume493,671
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.38
Price to Cash Flow (P/CF)2.10
P/FCF Ratio2.40
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
Scholastic Business Overview & Revenue Model
Company DescriptionScholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education Solutions, and International. The Children's Book Publishing and Distribution segment publishes and distributes children's books, e-books, media, and interactive products through its school book club and fair channels, as well as trade channels. Its original publications include the Harry Potter, Hunger Games, Bad Guys, Baby-Sitters Club graphic novels, Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, Goosebumps, and Clifford The Big Red Dog; and licensed properties comprise the Peppa Pig and Pokemon. In addition, this segment publishes and creates books plus and novelty products for children, including titles, such as the Pastel Studio, Mini Clay World Candy Cart, LEGO Gear Bots, Never Touch series, and other titles under the Klutz and the Make Believe Ideas names; and non-fiction books under the Children's Press and Franklin Watts names. The Education Solutions segment publishes and distributes classroom magazines under the Scholastic News, Scholastic Scope, Storyworks, Let's Find Out, and Junior Scholastic names; supplemental and classroom materials and programs, and related support services; and print and on-line reference, and non-fiction products, as well as consulting services. The International segment offers original trade and educational publishing programs; distributes children's books, digital educational resources, and other materials through school-based book clubs, school-based book fairs, and trade channels; produces and distributes magazines; and provides online subscription services. The company distributes its products and services directly to schools and libraries through retail stores and the Internet. Scholastic Corporation was founded in 1920 and is headquartered in New York, New York.
How the Company Makes MoneyScholastic makes money through various revenue streams including book publishing and distribution, education, and media. The company generates significant revenue from the sale of books through its school book clubs and fairs, retail sales, and online platforms. Scholastic's educational division contributes to revenue through the sale of curriculum programs and instructional materials to schools and educators. Additionally, licensing and merchandising of its popular franchises, such as Harry Potter and other intellectual properties, provide significant income. The company also earns from digital initiatives, including e-book sales and educational software platforms. Strategic partnerships with schools and other educational institutions further bolster its revenue by expanding its reach and integrating its products into educational systems.
Scholastic Financial Statement Overview
Summary
Scholastic exhibits a stable financial position with consistent revenue and gross profit margins, healthy cash flow, and manageable leverage. However, low profitability metrics like net profit and ROE indicate room for improvement. The balance sheet is robust with solid equity backing, though the decrease in equity and low profitability margins may pose future challenges.Income Statement
Scholastic shows a stable revenue base with a slight growth in the TTM period compared to the previous year. The gross profit margin remains solid at around 64.6% for TTM but has decreased slightly from 65.5% in the previous year. The EBIT margin of 1.8% is relatively low, indicating limited operational efficiency, however, it has shown improvement from previous periods. Net profit margin stands at 1.2% for TTM, reflecting modest profitability.73
Positive
Balance Sheet
Scholastic's balance sheet reveals a moderate debt-to-equity ratio of 0.41, suggesting manageable leverage. The equity ratio is strong at 48%, indicating solid asset backing by equity. ROE of 1.98% in the TTM period is low, pointing to modest returns on shareholder investments. There is a noted decrease in stockholders' equity over time, which may warrant attention.68
Positive
Cash Flow
The company demonstrates a healthy operating cash flow to net income ratio of 4.69 for TTM, indicating strong cash generation relative to net income. Free cash flow growth rate has declined but remains positive, indicating some level of reinvestment capacity. The free cash flow to net income ratio is 1.46, showing good cash conversion from profits.75
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.59B | 1.59B | 1.70B | 1.64B | 1.30B | 1.49B | Gross Profit |
| 873.30M | 827.50M | 917.60M | 877.40M | 633.80M | 736.10M | EBIT |
| 28.30M | 14.50M | 106.30M | 97.40M | -10.90M | 23.90M | EBITDA |
| 81.00M | 85.10M | 203.50M | 175.80M | 52.90M | -22.70M | Net Income Common Stockholders |
| 18.60M | 12.10M | 86.50M | 81.00M | -10.90M | -43.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 238.90M | 113.70M | 224.50M | 316.60M | 366.50M | 393.80M | Total Assets |
| 1.66B | 1.67B | 1.87B | 1.94B | 2.01B | 2.03B | Total Debt |
| 321.60M | 123.80M | 101.00M | 97.10M | 282.60M | 11.60M | Net Debt |
| 82.70M | 10.10M | -123.50M | -219.50M | -83.90M | -382.20M | Total Liabilities |
| 837.80M | 653.10M | 340.00M | 722.40M | 826.00M | 853.00M | Stockholders Equity |
| 825.00M | 1.02B | 1.16B | 1.22B | 1.18B | 1.18B |
| Cash Flow | Free Cash Flow | ||||
| 27.10M | 96.20M | 86.90M | 184.00M | 23.80M | -63.90M | Operating Cash Flow |
| 87.20M | 154.60M | 148.90M | 226.00M | 71.00M | 2.10M | Investing Cash Flow |
| -252.20M | -89.70M | -99.60M | -43.20M | -50.50M | -95.70M | Financing Cash Flow |
| 150.90M | -176.10M | -139.50M | -229.20M | -52.30M | 154.10M |
Scholastic Technical Analysis
Negative
15.84
Price Trends
19.30
Negative
20.87
Negative
25.02
Negative
Market Momentum
-1.01
Positive
32.22
Neutral
7.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCHL, the sentiment is Negative. The current price of 15.84 is below the 20-day moving average (MA) of 17.98, below the 50-day MA of 19.30, and below the 200-day MA of 25.02, indicating a bearish trend. The MACD of -1.01 indicates Positive momentum. The RSI at 32.22 is Neutral, neither overbought nor oversold. The STOCH value of 7.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCHL.
Scholastic Risk Analysis
Scholastic disclosed 23 risk factors in its most recent earnings report. Scholastic reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Scholastic Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.98B | 18.97 | 10.99% | 1.93% | -0.59% | 24.06% | |
69 Neutral | $7.98B | 27.52 | 15.92% | 1.07% | 6.59% | 26.68% | |
65 Neutral | $429.20M | 26.99 | 1.92% | 4.95% | -3.10% | -58.47% | |
59 Neutral | $13.83B | 7.37 | -0.59% | 3.89% | 2.56% | -39.63% | |
46 Neutral | $10.64M | ― | -12.44% | ― | -35.97% | -2121.45% | |
44 Neutral | $424.42M | ― | -11.19% | ― | -5.79% | -10.12% | |
37 Underperform | $53.55M | ― | 0.00% | ― | -9.28% | -647.14% |
* Communication Services Sector Average
Performance Comparison
SCHL
Scholastic
15.84
-17.87
-53.01%
EDUC
Educational Development
1.16
-1.09
-48.44%
LEE
Lee Enterprises
8.52
-4.29
-33.49%
NYT
New York Times
48.80
7.65
18.59%
PSO
Pearson
15.61
3.55
29.44%
GCI
Gannett
2.96
0.54
22.31%
Scholastic Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -15.74% | Next Earnings Date: Jul 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While Scholastic achieved modest revenue growth and strong performance in the Children's Books segment, the company faced challenges in the Education Solutions segment, consumer spending headwinds, and uncertainty in federal education funding. The overall sentiment is balanced with significant achievements and notable challenges.Highlights
Modest Revenue Growth
Scholastic achieved modest revenue growth of 4% to $335.4 million in the third quarter, driven by strong performance in the Children's Books segment and the addition of 9 Story Media Group.
Successful Children's Books Segment
Revenues and profits increased in the Children's Book Publishing and Distribution segment, with Book Fairs revenues up 8% and Book Clubs revenues up 14%.
Record Sales of New Releases
The 13th book in Dav Pilkey's Dog Man series sold almost 2.5 million copies globally, contributing significantly to the Trade Publishing division's success.
Dividend and Share Repurchase
Returned over $35 million to shareholders through dividends and share repurchases in the third quarter.
International Segment Growth
Revenues and profits increased in major markets including Canada, the U.K., and New Zealand.
Strong YouTube Engagement
Scholastic content on YouTube saw nearly 10 million views last month, up almost 40x from a year ago.
Lowlights
Education Solutions Revenue Decline
Sales and profits declined in the Education Solutions segment due to lower spending on supplemental curriculum, with revenues down 16%.
Consumer Spending Headwinds
Increased pressure on consumer spending, particularly in discretionary categories like Children's Book purchases, impacted transaction volumes.
Uncertainty in Federal Education Funding
Schools and school districts are delaying or pausing purchases of instructional materials due to uncertainty around federal education policy and funding mechanisms.
Challenges in Entertainment Segment
The Entertainment segment faced delays in production green lights, impacting near-term demand for production service work.
Cash Flow Decrease
Net cash used by operating activities was $12 million, compared to net cash provided of $13.1 million in the prior year period.
Company Guidance
During the Scholastic fiscal 2025 third quarter earnings call, the company provided updated guidance and metrics indicating a modest revenue growth forecast for the full year. The company now expects to achieve full-year adjusted EBITDA of approximately $140 million, aligning with the low end of its fiscal guidance. Despite facing spending headwinds in both consumer and educational sectors, Scholastic has executed cost-saving actions to benefit both the current fiscal year and fiscal 2026. The company reported a 4% revenue increase to $335.4 million in the third quarter, with an adjusted operating loss improvement to $20.9 million from $30.6 million in the prior year. Adjusted EBITDA showed a positive shift to $6 million from a loss of $7.2 million the previous year. The company's net loss also improved to $1.3 million compared to $23.3 million a year ago. Scholastic plans to continue returning cash to shareholders, with $35 million returned in the last quarter through dividends and share repurchases, and has increased its share buyback authorization to $100 million. Additionally, the company is assessing its Education Solutions segment and exploring opportunities to optimize long-term potential across its business units.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.