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SCHL

Scholastic NasdaqGS:SCHL Stock Report

Last Price

US$34.93

Market Cap

US$1.2b

7D

-4.4%

1Y

6.5%

Updated

21 May, 2022

Data

Company Financials
SCHL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends5/6

SCHL Stock Overview

Scholastic Corporation publishes and distributes children’s books worldwide.

Scholastic Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Scholastic
Historical stock prices
Current Share PriceUS$34.93
52 Week HighUS$43.71
52 Week LowUS$32.21
Beta0.76
1 Month Change-9.32%
3 Month Change-18.79%
1 Year Change6.49%
3 Year Change-6.33%
5 Year Change-16.95%
Change since IPO147.29%

Recent News & Updates

May 08
Some Investors May Be Worried About Scholastic's (NASDAQ:SCHL) Returns On Capital

Some Investors May Be Worried About Scholastic's (NASDAQ:SCHL) Returns On Capital

To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...

Jan 12
We Think Scholastic (NASDAQ:SCHL) Can Stay On Top Of Its Debt

We Think Scholastic (NASDAQ:SCHL) Can Stay On Top Of Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Nov 03
The Returns On Capital At Scholastic (NASDAQ:SCHL) Don't Inspire Confidence

The Returns On Capital At Scholastic (NASDAQ:SCHL) Don't Inspire Confidence

Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase...

Shareholder Returns

SCHLUS MediaUS Market
7D-4.4%1.5%-2.7%
1Y6.5%-25.6%-12.9%

Return vs Industry: SCHL exceeded the US Media industry which returned -25.6% over the past year.

Return vs Market: SCHL exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is SCHL's price volatile compared to industry and market?
SCHL volatility
SCHL Average Weekly Movement4.6%
Media Industry Average Movement8.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: SCHL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SCHL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19205,202Peter Warwickhttps://www.scholastic.com

Scholastic Corporation publishes and distributes children’s books worldwide. It operates in three segments: Children’s Book Publishing and Distribution, Education, and International. The Children’s Book Publishing and Distribution segment publishes and distributes children’s books, e-books, media, and interactive products through its school book club and school book fair channels, as well as through its trade channel.

Scholastic Fundamentals Summary

How do Scholastic's earnings and revenue compare to its market cap?
SCHL fundamental statistics
Market CapUS$1.20b
Earnings (TTM)US$36.40m
Revenue (TTM)US$1.53b

33.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCHL income statement (TTM)
RevenueUS$1.53b
Cost of RevenueUS$766.80m
Gross ProfitUS$763.10m
Other ExpensesUS$726.70m
EarningsUS$36.40m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.06
Gross Margin49.88%
Net Profit Margin2.38%
Debt/Equity Ratio1.2%

How did SCHL perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

57%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SCHL ($34.93) is trading below our estimate of fair value ($500.56)

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


Price To Earnings Ratio

PE vs Industry: SCHL is poor value based on its PE Ratio (33x) compared to the US Media industry average (15.5x).

PE vs Market: SCHL is poor value based on its PE Ratio (33x) compared to the US market (15.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SCHL is good value based on its PB Ratio (1x) compared to the US Media industry average (1.7x).


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.8%

Forecasted Media 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 Scholastic 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.


Past Performance

How has Scholastic performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-27.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCHL has a large one-off loss of $21.5M impacting its February 28 2022 financial results.

Growing Profit Margin: SCHL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SCHL's earnings have declined by 27.6% per year over the past 5 years.

Accelerating Growth: SCHL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SCHL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (22.7%).


Return on Equity

High ROE: SCHL's Return on Equity (3.1%) is considered low.


Financial Health

How is Scholastic's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SCHL's short term assets ($991.3M) exceed its short term liabilities ($659.2M).

Long Term Liabilities: SCHL's short term assets ($991.3M) exceed its long term liabilities ($96.0M).


Debt to Equity History and Analysis

Debt Level: SCHL has more cash than its total debt.

Reducing Debt: SCHL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SCHL's debt is well covered by operating cash flow (1554.7%).

Interest Coverage: SCHL's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet


Dividend

What is Scholastic current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SCHL's dividend (1.72%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: SCHL's dividend (1.72%) is low compared to the top 25% of dividend payers in the US market (4.11%).


Stability and Growth of Payments

Stable Dividend: SCHL's dividends per share have been stable in the past 10 years.

Growing Dividend: SCHL's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (56.9%), SCHL's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (11.8%), SCHL's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

3.5yrs

Average management tenure


CEO

Peter Warwick (69 yo)

0.75

Tenure

US$161,250

Compensation

Mr. Peter Warwick has been the Chief Executive Officer and President at Scholastic Corporation since August 1, 2021. Mr. Warwick has been Chief Executive Officer of Scholastic, Inc. since August 1, 2021. H...


Leadership Team

Experienced Management: SCHL's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: SCHL's board of directors are considered experienced (6.7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Scholastic Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Scholastic Corporation
  • Ticker: SCHL
  • Exchange: NasdaqGS
  • Founded: 1920
  • Industry: Publishing
  • Sector: Media
  • Implied Market Cap: US$1.202b
  • Shares outstanding: 34.42m
  • Website: https://www.scholastic.com

Number of Employees


Location

  • Scholastic Corporation
  • 557 Broadway
  • New York
  • New York
  • 10012
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/02/28
Annual Earnings2021/05/31


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.