SCHOLASTIC CORP (SCHL) Stock Fundamental Analysis
NASDAQ:SCHL - Nasdaq - US8070661058 - Common Stock - Currency: USD
SCHL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 96 industry peers in the Media industry. SCHL has only an average score on both its financial health and profitability. SCHL has a decent growth rate and is not valued too expensively. 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.
In multiple years SCHL reported negative net income over the last 5 years.
In the past 5 years SCHL always reported a positive cash flow from operatings.
1.2 Ratios
SCHL's Return On Assets of 0.95% is fine compared to the rest of the industry. SCHL outperforms 64.58% of its industry peers.
SCHL's Return On Equity of 1.98% is fine compared to the rest of the industry. SCHL outperforms 63.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.78%, SCHL is in line with its industry, outperforming 51.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years 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
SCHL's Profit Margin of 1.17% is fine compared to the rest of the industry. SCHL outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of SCHL has declined.
SCHL has a Operating Margin of 1.98%. This is comparable to the rest of the industry: SCHL outperforms 42.71% of its industry peers.
In the last couple of years the Operating Margin of SCHL has declined.
SCHL has a better Gross Margin (55.79%) than 70.83% of its industry peers.
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.
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.
SCHL has a worse debt/assets ratio than last year.
2.2 Solvency
SCHL has an Altman-Z score of 1.93. This is not the best score and indicates that SCHL is in the grey zone with still only limited risk for bankruptcy at the moment.
SCHL has a better Altman-Z score (1.93) than 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.
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.
The Debt to Equity ratio of SCHL (0.29) is better than 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
WACC9.18%
2.3 Liquidity
SCHL has a Current Ratio of 1.23. This is a normal value and indicates that SCHL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.23, SCHL perfoms like the industry average, 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.
Looking at the Quick ratio, with a value of 0.79, SCHL is doing worse than 72.92% of the companies in the same industry.
| 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.
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.
SCHL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.97% yearly.
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 14.21 indicates a correct valuation of SCHL.
Compared to the rest of the industry, the Price/Earnings ratio of SCHL indicates a somewhat cheap valuation: SCHL is cheaper than 71.88% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. SCHL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 7.85 indicates a rather cheap valuation of SCHL.
Based on the Price/Forward Earnings ratio, SCHL is valued cheaply inside the industry as 80.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SCHL to the average of the S&P500 Index (22.10), we can say SCHL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
82.29% 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 | 40.27 | ||
| EV/EBITDA | 5.76 |
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)0.72
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.
The stock price of SCHL dropped by -21.29% 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.
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.
SCHL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
On average, the dividend of SCHL grows each year by 6.50%, which is quite nice.
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.
SCHL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP122.58%
EPS Next 2Y52.03%
EPS Next 3YN/A
NASDAQ:SCHL (5/29/2025, 2:11:48 PM)
17.05
-0.18 (-1.04%)
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 Cap455.06M
Analysts43.33
Price Target35.7 (109.38%)
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 | 14.21 | ||
| Fwd PE | 7.85 | ||
| P/S | 0.29 | ||
| P/FCF | 40.27 | ||
| P/OCF | 5.22 | ||
| P/B | 0.48 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 5.76 |
EPS(TTM)1.2
EY7.04%
EPS(NY)2.17
Fwd EY12.74%
FCF(TTM)0.42
FCFY2.48%
OCF(TTM)3.27
OCFY19.16%
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
WACC9.18%
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%