SCHOLASTIC CORP (SCHL) Stock Fundamental Analysis
NASDAQ:SCHL - Nasdaq - US8070661058 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SCHL. SCHL was compared to 96 industry peers in the Media industry. SCHL has only an average score on both its financial health and profitability. SCHL has a correct valuation and a medium growth rate. Finally SCHL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SCHL had positive earnings in the past year.
SCHL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SCHL reported negative net income in multiple years.
Each year in the past 5 years SCHL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SCHL (0.95%) is better than 64.58% of its industry peers.
The Return On Equity of SCHL (1.98%) is better than 63.54% of its industry peers.
With a Return On Invested Capital value of 1.78%, SCHL perfoms like the industry average, outperforming 51.04% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SCHL is in line with the industry average of 6.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 1.98% | ||
| ROIC | 1.78% |
ROA(3y)3.17%
ROA(5y)1.36%
ROE(3y)5.08%
ROE(5y)2.12%
ROIC(3y)5.1%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 1.17%, SCHL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of SCHL has declined.
SCHL has a Operating Margin (1.98%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCHL has declined.
Looking at the Gross Margin, with a value of 55.79%, SCHL is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
SCHL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.98% | ||
| PM (TTM) | 1.17% | ||
| GM | 55.79% |
OM growth 3YN/A
OM growth 5Y-2.5%
PM growth 3YN/A
PM growth 5Y-4.2%
GM growth 3Y4.51%
GM growth 5Y1.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SCHL is destroying value.
Compared to 1 year ago, SCHL has less shares outstanding
The number of shares outstanding for SCHL has been reduced compared to 5 years ago.
The debt/assets ratio for SCHL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.93 indicates that SCHL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SCHL's Altman-Z score of 1.93 is fine compared to the rest of the industry. SCHL outperforms 68.75% of its industry peers.
The Debt to FCF ratio of SCHL is 26.51, which is on the high side as it means it would take SCHL, 26.51 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 26.51, SCHL perfoms like the industry average, outperforming 51.04% of the companies in the same industry.
SCHL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
SCHL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. SCHL outperforms 69.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 26.51 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.19
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.23 indicates that SCHL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.23, SCHL is in line with its industry, outperforming 44.79% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that SCHL may have some problems paying its short term obligations.
SCHL has a worse Quick ratio (0.79) than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
SCHL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.83%.
SCHL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.86% yearly.
Looking at the last year, SCHL shows a decrease in Revenue. The Revenue has decreased by -3.10% in the last year.
Measured over the past years, SCHL shows a decrease in Revenue. The Revenue has been decreasing by -0.79% on average per year.
EPS 1Y (TTM)-26.83%
EPS 3YN/A
EPS 5Y19.86%
EPS Q2Q%94.25%
Revenue 1Y (TTM)-3.1%
Revenue growth 3Y6.93%
Revenue growth 5Y-0.79%
Sales Q2Q%3.61%
3.2 Future
Based on estimates for the next years, SCHL will show a very strong growth in Earnings Per Share. The EPS will grow by 52.03% on average per year.
The Revenue is expected to grow by 0.97% on average over the next years.
EPS Next Y-46.83%
EPS Next 2Y52.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.35%
Revenue Next 2Y0.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.35 indicates a correct valuation of SCHL.
Based on the Price/Earnings ratio, SCHL is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.20, SCHL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 7.93, the valuation of SCHL can be described as very cheap.
Based on the Price/Forward Earnings ratio, SCHL is valued cheaper than 80.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, SCHL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHL is valued cheaper than 82.29% of the companies in the same industry.
SCHL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.67 | ||
| EV/EBITDA | 5.76 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SCHL's earnings are expected to grow with 52.03% in the coming years.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y52.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, SCHL is a good candidate for dividend investing.
The stock price of SCHL dropped by -21.33% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SCHL's Dividend Yield is rather good when compared to the industry average which is at 5.08. SCHL pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SCHL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
The dividend of SCHL is nicely growing with an annual growth rate of 6.50%!
SCHL has paid a dividend for at least 10 years, which is a reliable track record.
SCHL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.5%
Div Incr Years2
Div Non Decr Years16
5.3 Sustainability
122.58% of the earnings are spent on dividend by SCHL. This is not a sustainable payout ratio.
The dividend of SCHL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP122.58%
EPS Next 2Y52.03%
EPS Next 3YN/A
17.22
-0.01 (-0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners86.48%
Inst Owner Change-0.54%
Ins Owners16.31%
Ins Owner Change-0.01%
Market Cap459.60M
Analysts43.33
Price Target35.7 (107.32%)
Short Float %8.22%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend0.82
Dividend Growth(5Y)6.5%
DP122.58%
Div Incr Years2
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)35.65%
Min EPS beat(2)-22.42%
Max EPS beat(2)93.72%
EPS beat(4)2
Avg EPS beat(4)11.15%
Min EPS beat(4)-42.5%
Max EPS beat(4)93.72%
EPS beat(8)3
Avg EPS beat(8)-0.1%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.52%
Min Revenue beat(2)-5.42%
Max Revenue beat(2)-3.62%
Revenue beat(4)0
Avg Revenue beat(4)-6.29%
Min Revenue beat(4)-15.73%
Max Revenue beat(4)-0.4%
Revenue beat(8)0
Avg Revenue beat(8)-7.7%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-41.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 7.93 | ||
| P/S | 0.29 | ||
| P/FCF | 40.67 | ||
| P/OCF | 5.27 | ||
| P/B | 0.49 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)1.2
EY6.97%
EPS(NY)2.17
Fwd EY12.62%
FCF(TTM)0.42
FCFY2.46%
OCF(TTM)3.27
OCFY18.97%
SpS59.65
BVpS35.27
TBVpS19.65
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 1.98% | ||
| ROCE | 2.35% | ||
| ROIC | 1.78% | ||
| ROICexc | 1.92% | ||
| ROICexgc | 2.88% | ||
| OM | 1.98% | ||
| PM (TTM) | 1.17% | ||
| GM | 55.79% | ||
| FCFM | 0.71% |
ROA(3y)3.17%
ROA(5y)1.36%
ROE(3y)5.08%
ROE(5y)2.12%
ROIC(3y)5.1%
ROIC(5y)N/A
ROICexc(3y)6.32%
ROICexc(5y)N/A
ROICexgc(3y)8.32%
ROICexgc(5y)N/A
ROCE(3y)6.73%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-3.95%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.65%
OM growth 3YN/A
OM growth 5Y-2.5%
PM growth 3YN/A
PM growth 5Y-4.2%
GM growth 3Y4.51%
GM growth 5Y1.04%
F-Score6
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 26.51 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 90.57% | ||
| Cap/Sales | 4.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.56% | ||
| Profit Quality | 60.75% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.93 |
F-Score6
WACC9.22%
ROIC/WACC0.19
Cap/Depr(3y)116.68%
Cap/Depr(5y)120.46%
Cap/Sales(3y)4.64%
Cap/Sales(5y)5.1%
Profit Quality(3y)294.36%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.83%
EPS 3YN/A
EPS 5Y19.86%
EPS Q2Q%94.25%
EPS Next Y-46.83%
EPS Next 2Y52.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.1%
Revenue growth 3Y6.93%
Revenue growth 5Y-0.79%
Sales Q2Q%3.61%
Revenue Next Year-3.35%
Revenue Next 2Y0.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-47.07%
EBIT growth 3YN/A
EBIT growth 5Y-3.27%
EBIT Next Year102.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y213.89%
FCF growth 3Y187.15%
FCF growth 5YN/A
OCF growth 1Y14.14%
OCF growth 3Y29.61%
OCF growth 5Y5.84%