Scholastic (SCHL) AI Stock Analysis

• Market Cap: $678.75M
• Dividend Yield: 2.78%
• Average Volume (3M): 282.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• 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: 24,310,658
• 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: 0.42
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.34
• Enterprise Value/Ebitda: 2.60
• 1Y Price Target: $37.00
• Price Target Upside: 37.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $1.65B

• Rating: 60 Neutral
• Price Target: $28.00 ▲(3.70% Upside)

Scholastic's overall stock score reflects strong revenue growth and strategic financial initiatives, but is tempered by challenges in profitability and bearish technical indicators. The company's recent corporate events and positive earnings call sentiment provide a supportive outlook, but valuation concerns remain due to negative earnings.

Positive Factors

Revenue Growth

Strong revenue growth in the Children's Book Publishing segment indicates robust demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Positive cash flow trends enhance financial flexibility, allowing Scholastic to invest in growth opportunities and manage debt effectively.

Strategic Financial Initiatives

Monetizing real estate assets through sale-leasebacks boosts liquidity and supports capital allocation priorities, enhancing long-term shareholder value.

Negative Factors

Profitability Challenges

Negative net profit margin highlights ongoing profitability issues, which could hinder reinvestment and growth if not addressed.

Operational Efficiency

Low operational efficiency margins suggest potential cost management issues, impacting overall profitability and competitive positioning.

Education Segment Challenges

Declining revenues in the Education segment due to external factors could affect long-term growth prospects and market share in this key area.

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 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: Negative
• Last Price: 27.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 27 is below the 20-day moving average (MA) of 28.86, below the 50-day MA of 28.53, and above the 200-day MA of 23.12, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.97 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCHL.

Scholastic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	79 Outperform	$11.49B	34.49	17.63%	0.95%	8.43%	21.38%
PSO	74 Outperform	$8.90B	16.35	11.74%	2.12%	1.93%	34.40%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SCHL	60 Neutral	$678.75M	―	-0.35%	2.78%	2.53%	-23.86%
GCI	58 Neutral	―	―	44.25%	―	-8.56%	―
EDUC	46 Neutral	$11.42M	-2.49	-11.27%	―	-30.65%	-62.03%
LEE	46 Neutral	$22.73M	-0.58	―	―	-8.02%	-44.34%

Scholastic Corporate Events

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.

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.

Scholastic Increases Shares in Stock Purchase Plan

On September 17, 2025, Scholastic Corporation held its annual meeting of stockholders where Class A stockholders approved an amendment to the Management Stock Purchase Plan, increasing the authorized shares by 100,000 to a total of 700,000. This decision reflects the company’s strategic move to enhance its stock incentive plans, potentially impacting its financial operations and shareholder value positively.