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 503 industry peers in the Media industry. SCHL has an average financial health and profitability rating. SCHL is not valued too expensively and it also shows a decent growth rate. 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
SCHL's Return On Assets of 0.95% is fine compared to the rest of the industry. SCHL outperforms 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.
With a Return On Invested Capital value of 1.78%, SCHL perfoms like the industry average, outperforming 50.52% of the companies in the same industry.
SCHL had an Average Return On Invested Capital over the past 3 years of 5.10%. This is significantly below the industry average of 13.68%.
| 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
Looking at the Profit Margin, with a value of 1.17%, SCHL is in the better half of 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.
With a Operating Margin value of 1.98%, SCHL perfoms like the industry average, outperforming 42.27% of the companies in the same industry.
In the last couple of years the Operating Margin of SCHL has declined.
SCHL's Gross Margin of 55.79% is fine compared to the rest of the industry. SCHL outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for SCHL is higher compared to a year ago.
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 Altman-Z score of 1.99. This is in the better half of the industry: SCHL outperforms 70.10% 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.
SCHL has a Debt to FCF ratio of 26.51. This is comparable to the rest of the industry: SCHL outperforms 52.58% of its industry peers.
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/WACC0.2
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.23 indicates that SCHL should not have too much problems paying its short term obligations.
SCHL has a Current ratio of 1.23. This is comparable to the rest of the industry: SCHL outperforms 41.24% of its industry peers.
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.
SCHL's Quick ratio of 0.79 is on the low side compared to the rest of the industry. SCHL is outperformed by 75.26% of its industry peers.
| 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.
The Revenue has decreased by -3.10% in the past year.
SCHL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.79% yearly.
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.
The Revenue is expected to grow by 0.97% on average over the next years.
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
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
Based on the Price/Earnings ratio of 18.09, the valuation of SCHL can be described as rather expensive.
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.
When comparing the Price/Earnings ratio of SCHL to the average of the S&P500 Index (27.21), we can say SCHL is valued slightly cheaper.
The Price/Forward Earnings ratio is 9.99, which indicates a very decent valuation of SCHL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SCHL indicates a somewhat cheap valuation: SCHL is cheaper than 73.20% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. SCHL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
SCHL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SCHL is cheaper than 73.20% 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 | 51.28 | ||
| EV/EBITDA | 6.63 |
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)0.91
EPS Next 2Y52.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.76%, SCHL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.42, SCHL pays a better dividend. On top of this SCHL pays more dividend than 84.54% 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
5.2 History
The dividend of SCHL is nicely growing with an annual growth rate of 6.50%!
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 Years0
Div Non Decr Years16
5.3 Sustainability
122.58% 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.
DP122.58%
EPS Next 2Y52.03%
EPS Next 3YN/A
21.71
+0.73 (+3.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners88.44%
Inst Owner Change-0.54%
Ins Owners4.76%
Ins Owner Change-0.01%
Market Cap579.44M
Analysts43.33
Price Target35.7 (64.44%)
Short Float %8.41%
Short Ratio6.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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)-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)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.09 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.36 | ||
| P/FCF | 51.28 | ||
| P/OCF | 6.64 | ||
| P/B | 0.62 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)1.2
EY5.53%
EPS(NY)2.17
Fwd EY10.01%
FCF(TTM)0.42
FCFY1.95%
OCF(TTM)3.27
OCFY15.05%
SpS59.65
BVpS35.27
TBVpS19.65
PEG (NY)N/A
PEG (5Y)0.91
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
WACC9.03%
ROIC/WACC0.2
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%