SCHOLASTIC CORP (SCHL) Stock Fundamental Analysis
NASDAQ:SCHL - Nasdaq - US8070661058 - Common Stock - Currency: USD
Overall SCHL gets a fundamental rating of 4 out of 10. We evaluated SCHL against 93 industry peers in the Media industry. SCHL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past year SCHL had a positive cash flow from operations.
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 has a Return On Assets (-0.21%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -0.44%, SCHL is in line with its industry, outperforming 51.72% of the companies in the same industry.
SCHL's Return On Invested Capital of 1.15% is on the low side compared to the rest of the industry. SCHL is outperformed by 63.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SCHL is in line with the industry average of 6.94%.
| 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
In the last couple of years the Profit Margin of SCHL has declined.
The Operating Margin of SCHL (1.32%) is worse than 68.97% of its industry peers.
In the last couple of years the Operating Margin of SCHL has declined.
Looking at the Gross Margin, with a value of 55.84%, SCHL is in the better half of the industry, outperforming 66.67% 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 | 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
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
The number of shares outstanding for SCHL has been reduced compared to 5 years ago.
Compared to 1 year ago, SCHL has a worse debt to assets ratio.
2.2 Solvency
SCHL has an Altman-Z score of 1.89. 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.
SCHL's Altman-Z score of 1.89 is fine compared to the rest of the industry. SCHL outperforms 72.41% of its industry peers.
The Debt to FCF ratio of SCHL is 8.99, which is on the high side as it means it would take SCHL, 8.99 years of fcf income to pay off all of its debts.
SCHL has a Debt to FCF ratio (8.99) which is in line with its industry peers.
A Debt/Equity ratio of 0.27 indicates that SCHL is not too dependend on debt financing.
SCHL has a better Debt to Equity ratio (0.27) than 67.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 8.99 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.12
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.24 indicates that SCHL should not have too much problems paying its short term obligations.
SCHL's Current ratio of 1.24 is on the low side compared to the rest of the industry. SCHL is outperformed by 62.07% of its industry peers.
SCHL has a Quick Ratio of 1.24. This is a bad value and indicates that SCHL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SCHL (0.81) is worse than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for SCHL have decreased strongly by -80.41% 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 -3.89% 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)-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
The Earnings Per Share is expected to grow by 61.38% on average over the next years. This is a very strong growth
Based on estimates for the next years, SCHL will show a small growth in Revenue. The Revenue will grow by 2.09% on average per year.
EPS Next Y-8.85%
EPS Next 2Y61.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1%
Revenue Next 2Y2.09%
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.
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
With a Price/Earnings ratio of 49.74, SCHL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SCHL is on the same level as its industry peers.
SCHL is valuated expensively when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.72, the valuation of SCHL can be described as very cheap.
89.66% of the companies in the same industry are more expensive than SCHL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SCHL to the average of the S&P500 Index (92.74), we can say SCHL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.74 | ||
| Fwd PE | 7.72 |
4.2 Price Multiples
68.97% of the companies in the same industry are more expensive than SCHL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SCHL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 7.15 |
4.3 Compensation for Growth
SCHL's earnings are expected to grow with 61.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.5
EPS Next 2Y61.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.01%, SCHL is a good candidate for dividend investing.
In the last 3 months the price of SCHL has falen by -27.70%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SCHL's Dividend Yield is rather good when compared to the industry average which is at 4.38. SCHL pays more dividend than 85.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SCHL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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
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-539.53%
EPS Next 2Y61.38%
EPS Next 3YN/A
SCHOLASTIC CORP
NASDAQ:SCHL (2/5/2025, 11:07:19 AM)
18.9
-0.02 (-0.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners83.69%
Inst Owner Change0.92%
Ins Owners12.26%
Ins Owner Change2.33%
Market Cap531.09M
Analysts43.33
Price Target40.8 (115.87%)
Short Float %4.5%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend0.82
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)-2.01%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-0.4%
Revenue beat(4)0
Avg Revenue beat(4)-5.84%
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)0%
PT rev (3m)-9.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)-40.43%
EPS NY rev (3m)-40.43%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)3.64%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.74 | ||
| Fwd PE | 7.72 | ||
| P/S | 0.34 | ||
| P/FCF | 17.19 | ||
| P/OCF | 4.73 | ||
| P/B | 0.54 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 7.15 |
EPS(TTM)0.38
EY2.01%
EPS(NY)2.45
Fwd EY12.95%
FCF(TTM)1.1
FCFY5.82%
OCF(TTM)4
OCFY21.15%
SpS56.24
BVpS35.09
TBVpS20.48
PEG (NY)N/A
PEG (5Y)2.5
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 | 1.89 |
F-Score4
WACC9.28%
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 Y-8.85%
EPS Next 2Y61.38%
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-1%
Revenue Next 2Y2.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-68.52%
EBIT growth 3YN/A
EBIT growth 5Y-3.27%
EBIT Next Year115.03%
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%