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. SCHL also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SCHL was profitable.
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.
In the past 5 years SCHL always reported a positive cash flow from operatings.
1.2 Ratios
SCHL has a better Return On Assets (0.95%) than 64.58% of its industry peers.
The Return On Equity of SCHL (1.98%) is better than 63.54% of its industry peers.
The Return On Invested Capital of SCHL (1.78%) is comparable to the rest of the 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
With a decent Profit Margin value of 1.17%, SCHL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
SCHL's Profit Margin has declined in the last couple of years.
The Operating Margin of SCHL (1.98%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SCHL has declined.
The Gross Margin of SCHL (55.79%) is better than 70.83% of its industry peers.
In the last couple of years the Gross Margin of SCHL has remained more or less at the same level.
| 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
SCHL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SCHL has been reduced compared to 1 year ago.
SCHL has less shares outstanding than it did 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 has a Altman-Z score of 1.93. This is in the better half of the industry: SCHL outperforms 70.83% of its industry peers.
SCHL has a debt to FCF ratio of 26.51. This is a negative value and a sign of low solvency as SCHL would need 26.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 26.51, SCHL is in line with its industry, 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.
Looking at the Debt to Equity ratio, with a value of 0.29, SCHL is in the better half of the industry, outperforming 69.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 26.51 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.19
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.23 indicates that SCHL should not have too much problems paying its short term obligations.
SCHL has a Current ratio of 1.23. This is comparable to the rest of the industry: SCHL outperforms 45.83% of its industry peers.
SCHL has a Quick Ratio of 1.23. This is a bad value and indicates that SCHL is not financially healthy enough and could expect problems in meeting its short term obligations.
SCHL has a Quick ratio of 0.79. This is in the lower half of the industry: SCHL underperforms 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for SCHL have decreased strongly by -26.83% in the last year.
SCHL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.86% yearly.
The Revenue has decreased by -3.10% in the past year.
The Revenue has been decreasing by -0.79% on average over the past years.
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
SCHL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.03% yearly.
Based on estimates for the next years, SCHL will show a small growth in Revenue. The Revenue will grow by 0.97% on average per year.
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
With a Price/Earnings ratio of 14.83, SCHL is valued correctly.
71.88% of the companies in the same industry are more expensive than SCHL, based on the Price/Earnings ratio.
SCHL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
SCHL is valuated reasonably with a Price/Forward Earnings ratio of 8.19.
Based on the Price/Forward Earnings ratio, SCHL is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
SCHL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than SCHL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SCHL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.04 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
SCHL's earnings are expected to grow with 52.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y52.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCHL has a Yearly Dividend Yield of 4.59%, which is a nice return.
Compared to an average industry Dividend Yield of 5.08, SCHL pays a better dividend. On top of this SCHL pays more dividend than 87.50% of the companies listed 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 been paying a dividend for at least 10 years, so it has 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
SCHL pays out 122.58% of its income as dividend. 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
17.8
+0.7 (+4.09%)
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 Cap475.08M
Analysts43.33
Price Target35.7 (100.56%)
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 | 14.83 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.3 | ||
| P/FCF | 42.04 | ||
| P/OCF | 5.45 | ||
| P/B | 0.5 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)1.2
EY6.74%
EPS(NY)2.17
Fwd EY12.21%
FCF(TTM)0.42
FCFY2.38%
OCF(TTM)3.27
OCFY18.35%
SpS59.65
BVpS35.27
TBVpS19.65
PEG (NY)N/A
PEG (5Y)0.75
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
WACC9.26%
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%