OTCPK:SCOO

Stock Analysis Report

Executive Summary

School Specialty, Inc., together with its subsidiaries, distributes supplies, furniture, technology products, supplemental learning products, and curriculum solutions to the education marketplace in the United States and Canada.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has School Specialty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCOO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-29.4%

SCOO

-5.8%

US Consumer Services

-10.6%

US Market


1 Year Return

-96.0%

SCOO

19.0%

US Consumer Services

5.2%

US Market

Return vs Industry: SCOO underperformed the US Consumer Services industry which returned 19% over the past year.

Return vs Market: SCOO underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

SCOOIndustryMarket
7 Day-29.4%-5.8%-10.6%
30 Day-19.1%1.6%-8.5%
90 Day-76.0%12.8%-4.6%
1 Year-96.0%-96.0%19.3%19.0%7.4%5.2%
3 Year-98.7%-98.7%108.7%99.1%31.7%23.2%
5 Year-98.3%-98.3%177.7%145.5%56.4%39.3%

Price Volatility Vs. Market

How volatile is School Specialty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is School Specialty undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCOO ($0.24) is trading below our estimate of fair value ($22.81)

Significantly Below Fair Value: SCOO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SCOO is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: SCOO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SCOO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SCOO is good value based on its PB Ratio (0x) compared to the US Consumer Services industry average (2.3x).


Next Steps

Future Growth

How is School Specialty forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

42.6%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as School Specialty has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether School Specialty is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access School Specialty's filings and announcements here.
  • Explore growth companies in the Consumer Services industry.

Past Performance

How has School Specialty performed over the past 5 years?

-20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCOO is currently unprofitable.

Growing Profit Margin: SCOO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SCOO is unprofitable, and losses have increased over the past 5 years at a rate of -20.9% per year.

Accelerating Growth: Unable to compare SCOO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SCOO is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (23.5%).


Return on Equity

High ROE: SCOO has a negative Return on Equity (-95.98%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is School Specialty's financial position?


Financial Position Analysis

Short Term Liabilities: SCOO's short term assets ($269.2M) do not cover its short term liabilities ($290.6M).

Long Term Liabilities: SCOO's short term assets ($269.2M) exceed its long term liabilities ($9.9M).


Debt to Equity History and Analysis

Debt Level: SCOO's debt to equity ratio (370.2%) is considered high.

Reducing Debt: SCOO's debt to equity ratio has increased from 143.5% to 370.2% over the past 5 years.


Balance Sheet

Inventory Level: SCOO has a high level of physical assets or inventory.

Debt Coverage by Assets: SCOO's debt is covered by short term assets (assets are 1.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SCOO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SCOO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 15.4% per year.


Next Steps

Dividend

What is School Specialty's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SCOO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SCOO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SCOO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SCOO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SCOO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Mike Buenzow (54yo)

1yrs

Tenure

0

Mr. Michael C. Buenzow, also known as Mike, CTP, CIRA serves as Interim Chief Executive Officer at School Specialty Inc. since February 1, 2019 and serves as its Director. He serves as Senior Managing Dire ...


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Baehler
Executive VP & CFO2.7yrsUS$477.93k0.059% $997.0
Ryan Bohr
Executive VP & COO2.7yrsUS$891.48k0.15% $2.5k
Michael Buenzow
Interim CEO & Director1yrsno datano data
Stacey Rubin
Senior Vice President of Marketing1.4yrsno datano data
Laura Ackmann
Senior Vice President of Human Resources6.5yrsno datano data
Al Hoeppner
Senior Vice President of Merchandising0.08yrsno datano data
Bodie Marx
Senior Vice President of Curriculum0.08yrsno datano data
Joe Geltz
Senior VP of Operations & Process Excellence1.1yrsno datano data
Joseph Franzoi
Secretary0yrsno datano data
Amy Coenen
Assistant Secretary0yrsno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: SCOO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Buenzow
Interim CEO & Director1yrsno datano data
Andrew Schultz
Independent Director4.6yrsUS$192.83k0.055% $928.8
Gus Halas
Independent Chairman2.6yrsUS$228.04k0.055% $928.8
Justin Jacobs
Independent Director0.9yrsno datano data
Eric Yanagi
Director0.4yrsno datano data
Justin Lu
Independent Director6.7yrsUS$190.33k0.055% $928.8

2.6yrs

Average Tenure

54yo

Average Age

Experienced Board: SCOO's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

School Specialty, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: School Specialty, Inc.
  • Ticker: SCOO
  • Exchange: OTCPK
  • Founded: 1959
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.682m
  • Shares outstanding: 7.01m
  • Website: https://www.schoolspecialty.com

Number of Employees


Location

  • School Specialty, Inc.
  • W6316 Design Drive
  • Greenville
  • Wisconsin
  • 54942
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCOOOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2013

Biography

School Specialty, Inc., together with its subsidiaries, distributes supplies, furniture, technology products, supplemental learning products, and curriculum solutions to the education marketplace in the United States and Canada. It operates in two segments, Distribution and Curriculum. The Distribution segment offers office products, classroom supplies, janitorial and sanitation supplies, school equipment, school and student safety and security products and services, planning and development products, physical education products, art supplies and paper, and others; science education products, supplemental curriculum, and lab equipment and supplies; supplemental learning materials, teaching resources, and classroom libraries and manipulatives; educator-inspired audio technology products; and school health and furniture products, as well as project management and design services for school refurbishment and new construction projects. It provides its products under the Childcraft, Sax Arts & Crafts, Califone, Premier Agendas, Classroom Select, Sportime, Abilitations, Hammond & Stephens, SPARK, Brodhead Garrett, School Smart, Royal Seating, and Projects by Design, CPO Science, Frey Scientific, Educator’s Publishing Service, Wordly Wise 3000, Explode the Code, ThinkMath!, SSI Guardian, Making Connections, S.P.I.R.E, Buckle Down, and Coach brands. The Curriculum segment develops and sells standards-based curriculum science products, such as laboratory supplies and equipment and furniture under the FOSS, Frey Scientific, Delta Science Module, Delta Education, CPO Science, and Neo/SCI brand names. The company serves teachers, curriculum specialists, individual schools, school districts, and parents, as well as administrators in various healthcare related markets. The company offers its products through its sales force, catalogs, and its proprietary e-commerce Websites. School Specialty, Inc. was founded in 1959 and is headquartered in Greenville, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:52
End of Day Share Price2020/02/26 00:00
Earnings2019/09/28
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.