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EDUC

Educational DevelopmentNasdaqGM:EDUC Stock Report

Last Price

US$7.84

Market Cap

US$68.3m

7D

-5.9%

1Y

-45.8%

Updated

17 Jan, 2022

Data

Company Financials
EDUC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends4/6

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

Scholastic

NasdaqGS:SCHL

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for Educational Development
Historical stock prices
Current Share PriceUS$7.84
52 Week HighUS$19.50
52 Week LowUS$7.50
Beta1.0
1 Month Change-3.92%
3 Month Change-18.76%
1 Year Change-45.78%
3 Year Change-0.25%
5 Year Change60.00%
Change since IPO2,081.57%

Recent News & Updates

Dec 15
Calculating The Fair Value Of Educational Development Corporation (NASDAQ:EDUC)

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...

Dec 01

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.

Oct 27

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.

Oct 10
Educational Development (NASDAQ:EDUC) Has Announced A Dividend Of US$0.10

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...

Shareholder Returns

EDUCUS Retail DistributorsUS Market
7D-5.9%-0.6%-0.3%
1Y-45.8%34.9%13.7%

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.

Price Volatility

Is EDUC's price volatile compared to industry and market?
EDUC volatility
EDUC Average Weekly Movement7.1%
Retail Distributors Industry Average Movement7.1%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1965214Craig Whitehttps://www.edcpub.com

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

How do Educational Development's earnings and revenue compare to its market cap?
EDUC fundamental statistics
Market CapUS$68.26m
Earnings (TTM)US$10.15m
Revenue (TTM)US$159.26m

6.7x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EDUC income statement (TTM)
RevenueUS$159.26m
Cost of RevenueUS$48.16m
Gross ProfitUS$111.10m
ExpensesUS$100.95m
EarningsUS$10.15m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.17
Gross Margin69.76%
Net Profit Margin6.37%
Debt/Equity Ratio61.2%

How did EDUC perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

6.72x

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).


Future Growth

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

8.2%

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.


Past Performance

How has Educational Development performed over the past 5 years?

26.6%

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.


Financial Health

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).


Balance Sheet


Dividend

What is Educational Development current dividend yield, its reliability and sustainability?

5.10%

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.


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Craig White (52 yo)

0.50

Tenure

US$567,900

Compensation

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.


Leadership Team

Experienced Management: EDUC's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: EDUC's board of directors are seasoned and experienced ( 10.7 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 been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

Educational Development Corporation's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Educational Development Corporation
  • 5402 South 122nd East Avenue
  • Tulsa
  • Oklahoma
  • 74146
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 23:21
End of Day Share Price2022/01/14 00:00
Earnings2021/11/30
Annual Earnings2021/02/28


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.