Scholastic (SCHL) AI Stock Analysis

• Market Cap: $567.02M
• Dividend Yield: 3.76%
• Average Volume (3M): 266.11K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.00
• Revenue Growth: -3.10%
• EPS Growth: -58.47%
• Country: US
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 92
• Industry: Publishing
• EPS (TTM): -0.05
• Shares Outstanding: 25,858,398
• 10 Day Avg. Volume: 336,167
• 30 Day Avg. Volume: 266,111
• PEG Ratio: 1.85
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.52
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $23.00 ▲(8.13%Upside)

Scholastic's stock score is influenced by its stable financial performance and strong cash flow, despite challenges in profitability and equity decrease. The technical indicators suggest overbought conditions, while the valuation is high but offset by a good dividend yield. The earnings call provided a mixed sentiment with both growth and challenges.

Scholastic Business Overview & Revenue Model

Company Description

Scholastic Corporation (SCHL) is a leading global children's publishing, education, and media company. It operates in three primary segments: Children's Book Publishing and Distribution, Educational Solutions, and International. Scholastic is renowned for its broad range of children's books, educational materials, and digital content. The company is well-known for popular book series such as Harry Potter, The Hunger Games, and Captain Underpants, and it is a trusted partner for educators and parents worldwide.

How the Company Makes Money

Scholastic makes money primarily through its Children's Book Publishing and Distribution segment, which includes sales from trade publishing and book fairs. This segment is a significant revenue driver, leveraging both direct-to-consumer sales and partnerships with schools to distribute books and educational materials. The Educational Solutions segment contributes to revenue through the sale of curriculum materials, professional learning resources, and digital educational platforms aimed at enhancing classroom learning experiences. Scholastic also earns income internationally by adapting its successful models to local markets outside the United States. Key factors contributing to its earnings include brand recognition, a diverse product portfolio, and strategic partnerships with educational institutions and retailers.

Scholastic Financial Statement Overview

Summary

Scholastic exhibits a stable financial position with consistent revenue and gross profit margin. While the company maintains a healthy cash flow and manageable leverage, profitability metrics like net profit and ROE indicate room for improvement.

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.

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.

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.

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	884.60M	917.60M	877.40M	633.80M	736.10M
EBITDA	101.30M	85.10M	203.50M	175.80M	52.90M	-22.70M
Net Income	18.60M	12.10M	86.50M	81.00M	-10.90M	-43.70M
Balance Sheet
Total Assets	1.96B	1.67B	1.87B	1.94B	2.01B	2.03B
Cash, Cash Equivalents and Short-Term Investments	94.70M	113.70M	224.50M	316.60M	366.50M	393.80M
Total Debt	390.70M	123.80M	101.00M	97.10M	282.60M	11.60M
Total Liabilities	1.02B	653.10M	340.00M	722.40M	826.00M	853.00M
Stockholders Equity	941.30M	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

• Technical Analysis Sentiment: Positive
• Last Price: 21.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 21.27 is above the 20-day moving average (MA) of 19.21, above the 50-day MA of 18.32, and below the 200-day MA of 21.64, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 67.80 is Neutral, neither overbought nor oversold. The STOCH value of 73.35 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	76 Outperform	$9.07B	30.33	16.68%	1.29%	6.85%	21.26%
PSO	72 Outperform	$9.50B	18.03	10.99%	2.81%	-0.59%	24.06%
SCHL	66 Neutral	$567.02M	35.65	1.92%	3.76%	-3.10%	-58.47%
Sector *	61 Neutral	$41.40B	-1.28	-14.21%	3.95%	2.45%	-73.69%
GCI	59 Neutral	$524.24M	11.74	26.63%	―	-7.04%	―
LEE	43 Neutral	$39.06M	―	0.00%	―	-7.29%	-258.59%
EDUC	42 Neutral	$11.67M	―	-12.24%	―	-33.00%	-1052.42%

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.