SCHOLASTIC CORP (SCHL) Stock Fundamental Analysis
USA - NASDAQ:SCHL - US8070661058 - Common Stock
29.24 USD
+0.38 (+1.32%)
29.28 USD
+0.04 (+0.14%)
We assign a fundamental rating of 4 out of 10 to SCHL. SCHL was compared to 94 industry peers in the Media industry. While SCHL seems to be doing ok healthwise, there are quite some concerns on its profitability. SCHL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SCHL was profitable.
In the past year SCHL had a positive cash flow from operations.
In multiple years SCHL reported negative net income over the last 5 years.
SCHL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SCHL has a Return On Assets (-0.54%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -1.20%, SCHL is in line with its industry, outperforming 53.19% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.91%, SCHL is in line with its industry, outperforming 45.74% of the companies in the same industry.
SCHL had an Average Return On Invested Capital over the past 3 years of 3.39%. This is significantly below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.54% | ||
| ROE | -1.2% | ||
| ROIC | 0.91% |
ROA(3y)1.75%
ROA(5y)1.77%
ROE(3y)2.8%
ROE(5y)2.82%
ROIC(3y)3.39%
ROIC(5y)N/A
1.3 Margins
SCHL's Operating Margin of 1.00% is on the low side compared to the rest of the industry. SCHL is outperformed by 60.64% of its industry peers.
SCHL's Operating Margin has declined in the last couple of years.
SCHL has a better Gross Margin (55.76%) than 67.02% of its industry peers.
In the last couple of years the Gross Margin of SCHL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1% | ||
| PM (TTM) | N/A | ||
| GM | 55.76% |
OM growth 3Y-43.22%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.46%
GM growth 5Y2.42%
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
SCHL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SCHL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.98 indicates that SCHL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SCHL's Altman-Z score of 1.98 is fine compared to the rest of the industry. SCHL outperforms 69.15% of its industry peers.
SCHL has a debt to FCF ratio of 20.23. This is a negative value and a sign of low solvency as SCHL would need 20.23 years to pay back of all of its debts.
With a Debt to FCF ratio value of 20.23, SCHL perfoms like the industry average, outperforming 52.13% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that SCHL is not too dependend on debt financing.
SCHL has a Debt to Equity ratio of 0.37. This is in the better half of the industry: SCHL outperforms 60.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 20.23 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.1
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.16 indicates that SCHL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, SCHL is in line with its industry, outperforming 48.94% of the companies in the same industry.
SCHL has a Quick Ratio of 1.16. 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 worse Quick ratio (0.65) than 73.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for SCHL have decreased strongly by -88.12% in the last year.
SCHL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -40.97% yearly.
SCHL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.97%.
The Revenue has been growing slightly by 1.80% on average over the past years.
EPS 1Y (TTM)-88.12%
EPS 3Y-40.97%
EPS 5YN/A
EPS Q2Q%-18.31%
Revenue 1Y (TTM)0.97%
Revenue growth 3Y-0.35%
Revenue growth 5Y1.8%
Sales Q2Q%-4.89%
3.2 Future
SCHL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 95.19% yearly.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y113%
EPS Next 2Y95.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.62%
Revenue Next 2Y3.59%
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
Based on the Price/Earnings ratio of 243.67, the valuation of SCHL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SCHL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SCHL to the average of the S&P500 Index (26.89), we can say SCHL is valued expensively.
With a Price/Forward Earnings ratio of 15.05, SCHL is valued correctly.
SCHL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SCHL is cheaper than 63.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. SCHL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 243.67 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHL is valued a bit cheaper than 61.70% of the companies in the same industry.
SCHL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.99 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SCHL's earnings are expected to grow with 95.19% in the coming years.
PEG (NY)2.16
PEG (5Y)N/A
EPS Next 2Y95.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, SCHL has a reasonable but not impressive dividend return.
SCHL's Dividend Yield is rather good when compared to the industry average which is at 4.39. SCHL pays more dividend than 80.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SCHL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of SCHL is nicely growing with an annual growth rate of 7.19%!
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)7.19%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
SCHL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of SCHL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-210.48%
EPS Next 2Y95.19%
EPS Next 3YN/A
29.24
+0.38 (+1.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners84.73%
Inst Owner Change-0.92%
Ins Owners4.96%
Ins Owner Change2.62%
Market Cap735.09M
Revenue(TTM)1.61B
Net Income(TTM)-10500000
Analysts82.86
Price Target36.72 (25.58%)
Short Float %8.32%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend0.85
Dividend Growth(5Y)7.19%
DP-210.48%
Div Incr Years0
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.45%
Min EPS beat(2)-1.25%
Max EPS beat(2)0.35%
EPS beat(4)2
Avg EPS beat(4)17.6%
Min EPS beat(4)-22.42%
Max EPS beat(4)93.72%
EPS beat(8)3
Avg EPS beat(8)3.46%
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)1
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-7.42%
Max Revenue beat(2)0.76%
Revenue beat(4)1
Avg Revenue beat(4)-3.93%
Min Revenue beat(4)-7.42%
Max Revenue beat(4)0.76%
Revenue beat(8)1
Avg Revenue beat(8)-5.9%
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)2.86%
EPS NQ rev (1m)0.73%
EPS NQ rev (3m)-12.13%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 243.67 | ||
| Fwd PE | 15.05 | ||
| P/S | 0.46 | ||
| P/FCF | 42.99 | ||
| P/OCF | 8.72 | ||
| P/B | 0.84 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)0.12
EY0.41%
EPS(NY)1.94
Fwd EY6.65%
FCF(TTM)0.68
FCFY2.33%
OCF(TTM)3.35
OCFY11.47%
SpS64.2
BVpS34.92
TBVpS18.35
PEG (NY)2.16
PEG (5Y)N/A
Graham Number9.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.54% | ||
| ROE | -1.2% | ||
| ROCE | 1.22% | ||
| ROIC | 0.91% | ||
| ROICexc | 0.98% | ||
| ROICexgc | 1.48% | ||
| OM | 1% | ||
| PM (TTM) | N/A | ||
| GM | 55.76% | ||
| FCFM | 1.06% |
ROA(3y)1.75%
ROA(5y)1.77%
ROE(3y)2.8%
ROE(5y)2.82%
ROIC(3y)3.39%
ROIC(5y)N/A
ROICexc(3y)4%
ROICexc(5y)N/A
ROICexgc(3y)5.36%
ROICexgc(5y)N/A
ROCE(3y)4.54%
ROCE(5y)N/A
ROICexgc growth 3Y-43.88%
ROICexgc growth 5YN/A
ROICexc growth 3Y-46.67%
ROICexc growth 5YN/A
OM growth 3Y-43.22%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.46%
GM growth 5Y2.42%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 20.23 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 73.68% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.98 |
F-Score5
WACC8.77%
ROIC/WACC0.1
Cap/Depr(3y)115.19%
Cap/Depr(5y)108.28%
Cap/Sales(3y)5.01%
Cap/Sales(5y)4.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-88.12%
EPS 3Y-40.97%
EPS 5YN/A
EPS Q2Q%-18.31%
EPS Next Y113%
EPS Next 2Y95.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.97%
Revenue growth 3Y-0.35%
Revenue growth 5Y1.8%
Sales Q2Q%-4.89%
Revenue Next Year2.62%
Revenue Next 2Y3.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-65.67%
EBIT growth 3Y-43.42%
EBIT growth 5YN/A
EBIT Next Year556.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-78.27%
FCF growth 3Y-34.21%
FCF growth 5YN/A
OCF growth 1Y-50.73%
OCF growth 3Y-18.09%
OCF growth 5Y126.14%
SCHOLASTIC CORP / SCHL FAQ
Can you provide the ChartMill fundamental rating for SCHOLASTIC CORP?
ChartMill assigns a fundamental rating of 4 / 10 to SCHL.
What is the valuation status of SCHOLASTIC CORP (SCHL) stock?
ChartMill assigns a valuation rating of 4 / 10 to SCHOLASTIC CORP (SCHL). This can be considered as Fairly Valued.
What is the profitability of SCHL stock?
SCHOLASTIC CORP (SCHL) has a profitability rating of 3 / 10.
What is the valuation of SCHOLASTIC CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SCHOLASTIC CORP (SCHL) is 243.67 and the Price/Book (PB) ratio is 0.84.
What is the financial health of SCHOLASTIC CORP (SCHL) stock?
The financial health rating of SCHOLASTIC CORP (SCHL) is 4 / 10.