SCHOLASTIC CORP (SCHL) Stock Fundamental Analysis
NASDAQ:SCHL - Nasdaq - US8070661058 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SCHL. SCHL was compared to 97 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
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.
In the past 5 years SCHL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SCHL (0.95%) is better than 61.86% of its industry peers.
SCHL's Return On Equity of 1.98% is fine compared to the rest of the industry. SCHL outperforms 61.86% of its industry peers.
SCHL's Return On Invested Capital of 1.78% is in line compared to the rest of the industry. SCHL outperforms 50.52% of its industry peers.
SCHL had an Average Return On Invested Capital over the past 3 years of 5.10%. This is below the industry average of 7.58%.
| 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 60.82% 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 in line with its industry peers.
SCHL's Operating Margin has declined in the last couple of years.
The Gross Margin of SCHL (55.79%) is better than 69.07% 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
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.
The number of shares outstanding for SCHL has been reduced compared to 5 years ago.
SCHL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.99 indicates that SCHL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SCHL has a better Altman-Z score (1.99) than 67.01% 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 52.58% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that SCHL is not too dependend on debt financing.
SCHL has a Debt to Equity ratio of 0.29. This is in the better half of the industry: SCHL outperforms 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 26.51 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.19
WACC9.17%
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.
SCHL has a Current ratio (1.23) which is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 0.79, SCHL is doing worse than 75.26% of the companies in the same industry.
| 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%.
Measured over the past years, SCHL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.86% on average per year.
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.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SCHL is valuated rather expensively with a Price/Earnings ratio of 17.77.
Compared to the rest of the industry, the Price/Earnings ratio of SCHL indicates a somewhat cheap valuation: SCHL is cheaper than 69.07% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. SCHL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 9.81, the valuation of SCHL can be described as reasonable.
SCHL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCHL is cheaper than 73.20% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. SCHL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
SCHL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCHL is cheaper than 74.23% 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 | 50.36 | ||
| EV/EBITDA | 6.73 |
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)0.89
EPS Next 2Y52.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SCHL has a Yearly Dividend Yield of 3.74%.
Compared to an average industry Dividend Yield of 4.61, SCHL pays a better dividend. On top of this SCHL pays more dividend than 83.51% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
On average, the dividend of SCHL grows each year by 6.50%, which is quite nice.
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 Years0
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
21.32
-0.08 (-0.37%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners88.44%
Inst Owner Change0%
Ins Owners4.76%
Ins Owner Change-0.1%
Market Cap569.03M
Analysts43.33
Price Target35.7 (67.45%)
Short Float %6.42%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend0.82
Dividend Growth(5Y)6.5%
DP122.58%
Div Incr Years0
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-41.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.36 | ||
| P/FCF | 50.36 | ||
| P/OCF | 6.53 | ||
| P/B | 0.6 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)1.2
EY5.63%
EPS(NY)2.17
Fwd EY10.19%
FCF(TTM)0.42
FCFY1.99%
OCF(TTM)3.27
OCFY15.32%
SpS59.65
BVpS35.27
TBVpS19.65
PEG (NY)N/A
PEG (5Y)0.89
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 | 1.99 |
F-Score6
WACC9.17%
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%