EDUC Stock Overview
Educational Development Corporation, a publishing company, operates as a trade co-publisher of educational children’s books in the United States.
Educational Development Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$7.84|
|52 Week High||US$19.50|
|52 Week Low||US$7.50|
|1 Month Change||-3.92%|
|3 Month Change||-18.76%|
|1 Year Change||-45.78%|
|3 Year Change||-0.25%|
|5 Year Change||60.00%|
|Change since IPO||2,081.57%|
Recent News & Updates
Calculating The Fair Value Of Educational Development Corporation (NASDAQ:EDUC)
Today we will run through one way of estimating the intrinsic value of Educational Development Corporation...
Educational Development Corporation: Stock Decline, Management Incentive Alignment Indicate Potentially Attractive Entry Point
While EDUC revenues are likely to decline modestly as people stop staying at home, we believe revenues will still be above pre-pandemic levels due to their consultant-style selling. We believe EDUC is an attractive investment opportunity backed by a superb balance sheet and aligned management through insider ownership. EDUC's recent decline in stock price is an overreaction and in our view presents a compelling entry point.
Educational Development Corporation: Turning Inventory Into Cash Flow
Q2 results were a double whammy with a sharp decline in sales and a significant build-up of inventory funded by debt. With limited cash flow, the company lacks the liquidity to support the stock price with buybacks. On the bright side, the overstocking has positioned the company to gain market share as other competitors are facing shortages. Management has to execute in Q3 and convert the bloated inventory into cash flow to pay down the existing credit line and restart buybacks. Using a DCF with exit multiple valuation, my price target for EDUC is $16 which represents a 65% upside from the current price.
Educational Development (NASDAQ:EDUC) Has Announced A Dividend Of US$0.10
The board of Educational Development Corporation ( NASDAQ:EDUC ) has announced that it will pay a dividend of US$0.10...
|EDUC||US Retail Distributors||US Market|
Return vs Industry: EDUC underperformed the US Retail Distributors industry which returned 34.9% over the past year.
Return vs Market: EDUC underperformed the US Market which returned 13.7% over the past year.
|EDUC Average Weekly Movement||7.1%|
|Retail Distributors Industry Average Movement||7.1%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: EDUC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: EDUC's weekly volatility (7%) has been stable over the past year.
About the Company
Educational Development Corporation, a publishing company, operates as a trade co-publisher of educational children’s books in the United States. The company offers various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books, as well as science and math titles, and chapter books and novels. It operates in two divisions, Home Business and Publishing.
Educational Development Fundamentals Summary
|EDUC fundamental statistics|
Is EDUC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EDUC income statement (TTM)|
|Cost of Revenue||US$48.16m|
Last Reported Earnings
Nov 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.17|
|Net Profit Margin||6.37%|
How did EDUC perform over the long term?See historical performance and comparison
5.1%Current Dividend Yield
Is Educational Development undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: EDUC ($7.84) is trading above our estimate of fair value ($7.69)
Significantly Below Fair Value: EDUC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: EDUC is good value based on its PE Ratio (6.7x) compared to the US Retail Distributors industry average (15.7x).
PE vs Market: EDUC is good value based on its PE Ratio (6.7x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate EDUC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: EDUC is good value based on its PB Ratio (1.5x) compared to the US Retail Distributors industry average (2.9x).
How is Educational Development forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Retail 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 Educational Development 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.
How has Educational Development performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EDUC has a high level of non-cash earnings.
Growing Profit Margin: EDUC's current net profit margins (6.4%) are higher than last year (6%).
Past Earnings Growth Analysis
Earnings Trend: EDUC's earnings have grown significantly by 26.6% per year over the past 5 years.
Accelerating Growth: EDUC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: EDUC had negative earnings growth (-7.7%) over the past year, making it difficult to compare to the Retail Distributors industry average (72.9%).
Return on Equity
High ROE: EDUC's Return on Equity (21.8%) is considered high.
How is Educational Development's financial position?
Financial Position Analysis
Short Term Liabilities: EDUC's short term assets ($76.1M) exceed its short term liabilities ($39.3M).
Long Term Liabilities: EDUC's short term assets ($76.1M) exceed its long term liabilities ($23.2M).
Debt to Equity History and Analysis
Debt Level: EDUC's net debt to equity ratio (59.2%) is considered high.
Reducing Debt: EDUC's debt to equity ratio has reduced from 169.9% to 61.2% over the past 5 years.
Debt Coverage: EDUC's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: EDUC's interest payments on its debt are well covered by EBIT (17.3x coverage).
What is Educational Development current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: EDUC's dividend (5.1%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: EDUC's dividend (5.1%) is in the top 25% of dividend payers in the US market (3.44%)
Stability and Growth of Payments
Stable Dividend: EDUC's dividend payments have been volatile in the past 10 years.
Growing Dividend: EDUC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32%), EDUC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Craig White (52 yo)
Mr. Craig M. White has been a President, Chief Executive Officer and Director at Educational Development Corporation since July 13, 2021 and served as its Chief Operating Officer since July 31, 2018 until...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD567.90K) is about average for companies of similar size in the US market ($USD578.13K).
Compensation vs Earnings: Craig's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: EDUC's management team is considered experienced (4.2 years average tenure).
Experienced Board: EDUC's board of directors are seasoned and experienced ( 10.7 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.
Educational Development Corporation's employee growth, exchange listings and data sources
- Name: Educational Development Corporation
- Ticker: EDUC
- Exchange: NasdaqGM
- Founded: 1965
- Industry: Distributors
- Sector: Retail
- Implied Market Cap: US$68.265m
- Shares outstanding: 8.71m
- Website: https://www.edcpub.com
Number of Employees
- Educational Development Corporation
- 5402 South 122nd East Avenue
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/17 23:21|
|End of Day Share Price||2022/01/14 00:00|
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.