Scholastic (SCHL) AI Stock Analysis

• Market Cap: $661.15M
• Dividend Yield: 3.08%
• Average Volume (3M): 356.33K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.97
• Revenue Growth: 0.97%
• EPS Growth: -197.80%
• Country: US
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -2.52
• Shares Outstanding: 24,310,658
• 10 Day Avg. Volume: 609,474
• 30 Day Avg. Volume: 356,326
• PEG Ratio: 2.15
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 6.63
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: $32.00
• Price Target Upside: 21.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $27.00 ▲(2.23% Upside)

Scholastic's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis provides some positive signals, but valuation concerns persist due to a negative P/E ratio. The earnings call highlights both strategic achievements and ongoing challenges, contributing to a balanced but cautious outlook.

Scholastic Business Overview & Revenue Model

Company Description

Scholastic Corporation (SCHL) is a global publishing, education, and media company known for its wide range of children's books, educational materials, and various multimedia products. Established in 1920, the company operates primarily in the children's publishing sector, providing a diverse portfolio of books, magazines, and digital content aimed at fostering literacy and a love of reading. Scholastic also engages in educational publishing, offering curriculum and assessment resources for schools, as well as operating the popular Scholastic Book Clubs and Book Fairs, which promote reading among students.

How the Company Makes Money

Scholastic generates revenue through multiple key streams, primarily from its publishing and educational segments. The company's core revenue sources include the sale of children's books and educational materials, which are distributed through retail channels, direct sales, and its own book clubs and fairs. Additionally, Scholastic earns revenue from licensing its intellectual properties for adaptations in various media, including films and television. The company benefits from ongoing partnerships with schools and educational institutions, which contribute significantly to its sales of classroom resources and curriculum materials. Seasonal sales during back-to-school periods and strong marketing campaigns further enhance its revenue potential.

Scholastic Financial Statement Overview

Summary

Scholastic shows stable financials with positive cash flow trends and revenue growth, but struggles with profitability and increased leverage. The balance sheet is strong, yet the negative return on equity and net profit margin are concerns.

Income Statement

Scholastic's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 2.1%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -0.65%. The gross profit margin remains healthy at 48.37%, but the EBIT and EBITDA margins are relatively low at 6.47% and 5.21%, respectively. The company needs to focus on improving its cost structure and profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased to 0.50 in the TTM period, indicating a rise in leverage, but it remains manageable. The return on equity is negative at -1.12%, highlighting profitability challenges. However, the equity ratio is strong at approximately 46.39%, suggesting a solid equity base. Scholastic should aim to enhance its return on equity while managing debt levels.

Cash Flow

Cash flow analysis reveals positive trends, with a significant free cash flow growth of 165.68% in the TTM period. The operating cash flow to net income ratio is 0.13, and the free cash flow to net income ratio is 0.50, indicating a reasonable conversion of earnings to cash. The company has improved its cash flow generation, which is a positive sign for future financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.61B	1.63B	1.59B	1.70B	1.64B	1.30B
Gross Profit	882.70M	841.00M	884.60M	917.60M	877.40M	633.80M
EBITDA	89.00M	80.40M	85.10M	203.50M	175.80M	52.90M
Net Income	-10.50M	-1.90M	12.10M	86.50M	81.00M	-10.90M
Balance Sheet
Total Assets	1.95B	1.95B	1.67B	1.87B	1.94B	2.01B
Cash, Cash Equivalents and Short-Term Investments	94.30M	124.00M	113.70M	224.50M	316.60M	366.50M
Total Debt	443.20M	374.50M	123.80M	101.00M	97.10M	282.60M
Total Liabilities	1.08B	1.00B	653.10M	340.00M	722.40M	826.00M
Stockholders Equity	878.00M	946.50M	1.02B	1.16B	1.22B	1.18B
Cash Flow
Free Cash Flow	42.10M	72.00M	96.20M	86.90M	184.00M	23.80M
Operating Cash Flow	84.30M	124.20M	154.60M	148.90M	226.00M	71.00M
Investing Cash Flow	-67.00M	-252.90M	-89.70M	-99.60M	-43.20M	-50.50M
Financing Cash Flow	-7.80M	137.30M	-176.10M	-139.50M	-229.20M	-52.30M

Scholastic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.41
• 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 SCHL, the sentiment is Positive. The current price of 26.41 is above the 20-day moving average (MA) of 26.19, above the 50-day MA of 25.14, and above the 200-day MA of 20.88, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 64.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCHL.

Scholastic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	77 Outperform	9.34B	29.55	15.25%	1.07%	7.82%	19.39%
PSO	72 Outperform	8.83B	16.12	10.75%	2.14%	1.93%	34.40%
GCI	60 Neutral	634.85M	6.58	48.81%	―	-8.00%	―
SCHL	56 Neutral	$661.15M	37.85	-1.14%	3.08%	0.97%	-197.80%
EDUC	50 Neutral	11.76M	-2.26	-12.81%	―	-32.68%	-3656.21%
LEE	46 Neutral	35.57M	-0.81	261.35%	―	-5.68%	-127.26%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Scholastic Corporate Events

Scholastic Announces Director Retirements and Strategic Updates

On June 20, 2025, Scholastic Corporation announced the planned retirements of directors David Young and John L. Davies, effective at the annual meeting on September 17, 2025. Their departures are not due to disagreements with the company. Scholastic also updated its strategic and operational initiatives, focusing on enhancing shareholder value through cost management, restructuring, and potential real estate transactions. The company aims to maintain its fiscal 2025 Adjusted EBITDA guidance and is actively seeking new independent directors to support its growth and transformation strategies.

Scholastic Announces New Children’s Book Group Integration

On May 29, 2025, Scholastic Corporation announced the integration of its Trade Publishing, Book Fairs, and Book Clubs divisions into a new Children’s Book Group, effective June 1, 2025. This strategic move, led by Sasha Quinton, aims to strengthen Scholastic’s position in children’s publishing by creating a cohesive approach across all channels. Jackie De Leo, a seasoned leader from Barnes & Noble, joins as Publisher and Chief Merchant to enhance the company’s editorial and merchandising capabilities. The reorganization is expected to expand Scholastic’s reach and value, ensuring its stories and characters continue to resonate with children globally.

Scholastic Announces Leadership Transition in Legal Department

On May 21, 2025, Scholastic Corporation announced the retirement of Andrew S. Hedden from his roles as Executive Vice President, General Counsel, and Secretary, effective May 31, 2025. Hedden, who has been with the company since 2008, will transition to a role as Senior Counselor. Chris Lick, currently the Deputy General Counsel, will succeed Hedden as Executive Vice President, General Counsel, and Secretary, effective June 1, 2025. This leadership change marks a significant transition within Scholastic’s legal department, potentially impacting its strategic direction and operations.