SCHOLASTIC CORP (SCHL)
US8070661058 - Common Stock
Taking everything into account, SCHL scores 4 out of 10 in our fundamental rating. SCHL was compared to 91 industry peers in the Media industry. The financial health of SCHL is average, but there are quite some concerns on its 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.
SCHL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.21%, SCHL is in line with its industry, outperforming 52.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.44%, SCHL is in line with its industry, outperforming 51.16% of the companies in the same industry.
The Return On Invested Capital of SCHL (1.15%) is worse than 63.95% of its industry peers.
SCHL had an Average Return On Invested Capital over the past 3 years of 5.10%. This is in line with the industry average of 6.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.21% | ||
| ROE | -0.44% | ||
| ROIC | 1.15% |
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 has declined in the last couple of years.
Looking at the Operating Margin, with a value of 1.32%, SCHL is doing worse than 69.77% of the companies in the same industry.
In the last couple of years the Operating Margin of SCHL has declined.
The Gross Margin of SCHL (55.84%) is better than 66.28% of its industry peers.
SCHL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.32% | ||
| PM (TTM) | N/A | ||
| GM | 55.84% |
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
Compared to 5 years ago, SCHL has less shares outstanding
Compared to 1 year ago, SCHL has a worse debt to assets ratio.
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.
The Altman-Z score of SCHL (1.93) is better than 72.09% of its industry peers.
SCHL has a debt to FCF ratio of 8.99. This is a slightly negative value and a sign of low solvency as SCHL would need 8.99 years to pay back of all of its debts.
With a Debt to FCF ratio value of 8.99, SCHL perfoms like the industry average, outperforming 59.30% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SCHL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.27, SCHL is doing good in the industry, outperforming 68.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.12
WACC9.3%
2.3 Liquidity
SCHL has a Current Ratio of 1.24. 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 1.24, SCHL is not doing good in the industry: 61.63% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that SCHL may have some problems paying its short term obligations.
SCHL's Quick ratio of 0.81 is on the low side compared to the rest of the industry. SCHL is outperformed by 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
SCHL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -80.41%.
SCHL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.86% yearly.
SCHL shows a decrease in Revenue. In the last year, the revenue decreased by -3.89%.
SCHL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.79% yearly.
EPS 1Y (TTM)-80.41%
EPS 3YN/A
EPS 5Y19.86%
EPS Q2Q%-25.71%
Revenue 1Y (TTM)-3.89%
Revenue growth 3Y6.93%
Revenue growth 5Y-0.79%
Sales Q2Q%-3.2%
3.2 Future
SCHL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 68.29% yearly.
The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y53%
EPS Next 2Y68.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.71%
Revenue Next 2Y2.04%
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 55.29, the valuation of SCHL can be described as expensive.
SCHL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SCHL to the average of the S&P500 Index (27.41), we can say SCHL is valued expensively.
SCHL is valuated cheaply with a Price/Forward Earnings ratio of 7.89.
89.53% of the companies in the same industry are more expensive than SCHL, based on the Price/Forward Earnings ratio.
SCHL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.29 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
SCHL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCHL is cheaper than 65.12% 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 | 19.13 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
SCHL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SCHL's earnings are expected to grow with 68.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)2.78
EPS Next 2Y68.29%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, SCHL has a reasonable but not impressive dividend return.
The stock price of SCHL dropped by -22.64% 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 4.33. SCHL pays more dividend than 84.88% of the companies in the same industry.
SCHL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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
The earnings of SCHL are negative and hence is the payout ratio. SCHL will probably not be able to sustain this dividend level.
SCHL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-539.53%
EPS Next 2Y68.29%
EPS Next 3YN/A
SCHOLASTIC CORP
NASDAQ:SCHL (1/3/2025, 8:01:34 PM)
After market: 21.01 0 (0%)21.01
-0.13 (-0.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.69%
Inst Owner Change-0.45%
Ins Owners12.26%
Ins Owner Change2.54%
Market Cap590.38M
Analysts43.33
Price Target40.8 (94.19%)
Short Float %3.22%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Dividend Growth(5Y)6.5%
DP-539.53%
Div Incr Years2
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.31%
Min EPS beat(2)-22.42%
Max EPS beat(2)15.8%
EPS beat(4)1
Avg EPS beat(4)-13.94%
Min EPS beat(4)-42.5%
Max EPS beat(4)15.8%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-1.75%
Min Revenue beat(2)-3.09%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-5.71%
Min Revenue beat(4)-15.73%
Max Revenue beat(4)-0.4%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-9.09%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.45%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.29 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.37 | ||
| P/FCF | 19.13 | ||
| P/OCF | 5.26 | ||
| P/B | 0.6 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)0.38
EY1.81%
EPS(NY)2.66
Fwd EY12.67%
FCF(TTM)1.1
FCFY5.23%
OCF(TTM)3.99
OCFY18.99%
SpS56.16
BVpS35.04
TBVpS20.45
PEG (NY)1.04
PEG (5Y)2.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.21% | ||
| ROE | -0.44% | ||
| ROCE | 1.51% | ||
| ROIC | 1.15% | ||
| ROICexc | 1.28% | ||
| ROICexgc | 1.91% | ||
| OM | 1.32% | ||
| PM (TTM) | N/A | ||
| GM | 55.84% | ||
| FCFM | 1.96% |
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-Score4
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.99 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 111.81% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 119.85% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.93 |
F-Score4
WACC9.3%
ROIC/WACC0.12
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)-80.41%
EPS 3YN/A
EPS 5Y19.86%
EPS Q2Q%-25.71%
EPS Next Y53%
EPS Next 2Y68.29%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.89%
Revenue growth 3Y6.93%
Revenue growth 5Y-0.79%
Sales Q2Q%-3.2%
Revenue Next Year-0.71%
Revenue Next 2Y2.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-68.52%
EBIT growth 3YN/A
EBIT growth 5Y-3.27%
EBIT Next Year113.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.57%
FCF growth 3Y187.15%
FCF growth 5YN/A
OCF growth 1Y6.24%
OCF growth 3Y29.61%
OCF growth 5Y5.84%