Scholastic (SCHL) AI Stock Analysis

• Market Cap: $862.47M
• Dividend Yield: 2.78%
• Average Volume (3M): 282.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 2.53%
• EPS Growth: -23.86%
• Country: US
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 2.57
• Shares Outstanding: 24,613,592
• 10 Day Avg. Volume: 410,613
• 30 Day Avg. Volume: 282,797
• 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: 1.21
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.24
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $37.00
• Price Target Upside: 8.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $1.65B

• Rating: 65 Neutral
• Price Target: $37.00 ▲(8.28% Upside)

The score is driven primarily by mixed financial performance: strong revenue growth and a stable balance sheet are offset by weak profitability and subpar cash conversion. Technicals are neutral with only mild trend support. Valuation is tempered by a negative P/E despite a reasonable dividend yield. The latest earnings call adds a positive tilt via affirmed guidance, improved EBITDA, and shareholder-return actions, but segment headwinds remain.

Positive Factors

Revenue Growth

Consistent revenue growth, especially in core segments like Children's Book Publishing, indicates strong market demand and effective sales strategies.

Balance Sheet Health

A stable balance sheet with manageable debt levels provides financial flexibility and reduces risk, supporting long-term strategic initiatives.

Strategic Real Estate Transactions

Monetizing real estate assets enhances liquidity and supports capital allocation priorities, enabling focus on growth and shareholder returns.

Negative Factors

Weak Profitability

Negative profitability indicates challenges in cost management and operational efficiency, which can hinder long-term financial performance.

Education Segment Challenges

Declining revenues in the Education segment due to external factors like federal disbursement delays can impact overall business stability.

Cash Conversion Issues

Low cash conversion relative to net income suggests inefficiencies in turning profits into cash, potentially affecting liquidity and investment capacity.

Scholastic Business Overview & Revenue Model

Company Description

Scholastic 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 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 strong revenue growth and a stable balance sheet, but faces challenges in profitability and operational efficiency. The company's ability to generate free cash flow is a positive sign, although net losses and low margins highlight areas for improvement.

Income Statement

Scholastic's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 51.99%, which is healthy, but the net profit margin is negative at -0.21%, indicating a net loss. Revenue growth is strong at 40.3% TTM, suggesting robust sales performance. However, the EBIT and EBITDA margins are relatively low at 1.08% and 6.81% respectively, indicating challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41 TTM, which is manageable. However, the return on equity is negative at -0.37% TTM, reflecting recent net losses. The equity ratio is not directly provided, but the company maintains a solid equity base relative to its assets, indicating financial stability.

Cash Flow

Cash flow analysis shows a positive trend with a free cash flow growth rate of 6.89% TTM. The operating cash flow to net income ratio is 0.13, suggesting that cash generation is not fully aligned with net income. The free cash flow to net income ratio is 0.52, indicating that the company is generating free cash flow despite net losses.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.63B	1.59B	1.70B	1.64B	1.30B
Gross Profit	841.00M	827.50M	862.90M	820.60M	573.30M
EBITDA	127.20M	111.30M	203.50M	175.80M	73.90M
Net Income	-1.90M	12.10M	86.30M	80.90M	-11.00M
Balance Sheet
Total Assets	1.95B	1.67B	1.87B	1.94B	2.01B
Cash, Cash Equivalents and Short-Term Investments	124.00M	113.70M	224.50M	316.60M	366.50M
Total Debt	374.50M	122.10M	101.00M	97.10M	282.60M
Total Liabilities	1.00B	653.10M	702.20M	722.40M	826.00M
Stockholders Equity	946.50M	1.02B	1.16B	1.22B	1.18B
Cash Flow
Free Cash Flow	72.00M	96.20M	86.90M	184.00M	23.80M
Operating Cash Flow	124.20M	154.60M	148.90M	226.00M	71.00M
Investing Cash Flow	-252.90M	-89.70M	-99.60M	-43.20M	-50.50M
Financing Cash Flow	137.30M	-176.10M	-139.50M	-229.20M	-52.30M

Scholastic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 34.17 is above the 20-day moving average (MA) of 30.33, above the 50-day MA of 29.26, and above the 200-day MA of 23.99, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 74.18 is Negative, neither overbought nor oversold. The STOCH value of 96.11 is Negative, 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	81 Outperform	$11.65B	34.96	17.63%	0.95%	8.43%	21.38%
PSO	74 Outperform	$8.27B	15.09	11.74%	2.11%	1.93%	34.40%
SCHL	65 Neutral	$862.47M	-172.34	-0.35%	2.78%	2.53%	-23.86%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EDUC	58 Neutral	$12.26M	3.02	-11.27%	―	-30.65%	-62.03%
LEE	52 Neutral	$30.91M	-0.80	―	―	-8.02%	-44.34%

Scholastic Corporate Events

Scholastic Expands Executive Leadership Role, Adjusts Compensation Package

On December 16, 2025, Scholastic’s Board expanded Executive Vice President and Chief Growth Officer Jeffrey Mathews’ responsibilities by formally appointing him President, Education Solutions, a role he had held on an interim basis since June 2025, and approved a revised compensation package reflecting his broader remit. Effective January 1, 2026, his base salary will rise from $615,000 to $675,000, his short-term incentive bonus target was increased from 60% to 70% of base salary retroactive to June 1, 2025 and applied to the full fiscal year ending May 31, 2026 without proration, his long-term equity incentive target for fiscal 2027 awards will align with the higher base salary, and he received a temporary 12‑month severance protection entitling him to 24 months of salary if he resigns due to a compensation downgrade starting January 1, 2026. Also on December 16, 2025, the Human Resources and Compensation Committee approved a $1.5 million special transaction bonus pool for executives and key staff who completed the company’s two sale‑leaseback deals that closed on December 17, 2025, with CFO Haji Glover and Mr. Mathews each receiving $400,000, underscoring management’s emphasis on rewarding leadership for executing strategic real estate transactions.

The most recent analyst rating on (SCHL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Scholastic stock, see the SCHL Stock Forecast page.

Scholastic completes major real estate sale-leaseback transactions

On December 17, 2025, Scholastic Corporation completed previously announced sale-leaseback transactions for its New York City headquarters at 555-557 Broadway and its primary distribution facility in Jefferson City, Missouri, generating $481 million in gross proceeds and an estimated $401 million in net proceeds after taxes and transaction costs. The company has entered into long-term leases for both properties, including a 15-year lease with renewal options for floors six through twelve of its SoHo headquarters and a 20-year triple-net lease with renewal options for the Jefferson City distribution center, arrangements that shift property-related costs to Scholastic while preserving operational continuity. Management highlighted that monetizing these non-operating real estate assets enhances liquidity, reduces the operating footprint and supports Scholastic’s capital allocation priorities, including share repurchases, positioning the company to focus on long-term growth, operational efficiencies and sustained value creation for shareholders.

The most recent analyst rating on (SCHL) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Scholastic stock, see the SCHL Stock Forecast page.

Scholastic Enters Sale-Leaseback Agreements for Properties

On December 1, 2025, Scholastic entered into sale-leaseback agreements for properties in New York and Missouri. The New York transaction involves selling the SoHo Building to ESRT for $386 million, with a leaseback arrangement for Scholastic to occupy several floors for 15 years. The Missouri transaction involves selling warehouse sites to FNLR for $94.97 million, with a 20-year leaseback for Scholastic. These transactions allow Scholastic to monetize real estate assets while maintaining operational presence.

The most recent analyst rating on (SCHL) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Scholastic stock, see the SCHL Stock Forecast page.