SCHOLASTIC CORP (SCHL)
US8070661058 - Common Stock
We assign a fundamental rating of 5 out of 10 to SCHL. SCHL was compared to 93 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.
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.
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 has a Return On Assets (0.72%) which is in line with its industry peers.
The Return On Equity of SCHL (1.19%) is comparable to the rest of the industry.
SCHL's Return On Invested Capital of 2.42% is in line compared to the rest of the industry. SCHL outperforms 42.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SCHL is in line with the industry average of 7.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 1.19% | ||
| ROIC | 2.42% |
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
The Profit Margin of SCHL (0.76%) is comparable to the rest of the industry.
SCHL's Profit Margin has declined in the last couple of years.
SCHL's Operating Margin of 2.28% is on the low side compared to the rest of the industry. SCHL is outperformed by 66.30% of its industry peers.
In the last couple of years the Operating Margin of SCHL has declined.
With a decent Gross Margin value of 55.65%, SCHL is doing good in the industry, outperforming 67.39% of the companies in the same industry.
SCHL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.28% | ||
| PM (TTM) | 0.76% | ||
| GM | 55.65% |
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%
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.
Compared to 1 year ago, SCHL has less shares outstanding
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 2.80. 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 (2.80) is better than 81.52% of its industry peers.
The Debt to FCF ratio of SCHL is 0.17, which is an excellent value as it means it would take SCHL, only 0.17 years of fcf income to pay off all of its debts.
SCHL has a better Debt to FCF ratio (0.17) than 93.48% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that SCHL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, SCHL belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.29
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.27 indicates that SCHL should not have too much problems paying its short term obligations.
SCHL has a Current ratio of 1.27. This is in the lower half of the industry: SCHL underperforms 69.57% of its industry peers.
SCHL has a Quick Ratio of 1.27. 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 0.77. This is amonst the worse of the industry: SCHL underperforms 83.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for SCHL have decreased strongly by -62.10% 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.
SCHL shows a decrease in Revenue. In the last year, the revenue decreased by -6.71%.
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)-62.1%
EPS 3YN/A
EPS 5Y19.86%
EPS Q2Q%-30.97%
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y6.93%
Revenue growth 5Y-0.79%
Sales Q2Q%-10.11%
3.2 Future
SCHL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 87.50% yearly.
SCHL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.23% yearly.
EPS Next Y64.94%
EPS Next 2Y87.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.06%
Revenue Next 2Y1.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 33.63, which means the current valuation is very expensive for SCHL.
60.87% of the companies in the same industry are more expensive than SCHL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 30.45. SCHL is around the same levels.
SCHL is valuated rather expensively with a Price/Forward Earnings ratio of 20.39.
The rest of the industry has a similar Price/Forward Earnings ratio as SCHL.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, SCHL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.63 | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SCHL is valued a bit cheaper than 69.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SCHL indicates a somewhat cheap valuation: SCHL is cheaper than 71.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SCHL's earnings are expected to grow with 87.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)1.69
EPS Next 2Y87.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, SCHL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.42, SCHL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.26, SCHL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.5%
Div Incr Years2
Div Non Decr Years15
5.3 Sustainability
204.13% of the earnings are spent on dividend by SCHL. This is not a sustainable payout ratio.
The dividend of SCHL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP204.13%
EPS Next 2Y87.5%
EPS Next 3YN/A
SCHOLASTIC CORP
NASDAQ:SCHL (9/18/2024, 4:20:00 PM)
After market: 31.61 0 (0%)31.61
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap893.61M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.63 | ||
| Fwd PE | 20.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 1.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.28% | ||
| PM (TTM) | 0.76% | ||
| GM | 55.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-62.1%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y64.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y6.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y