NasdaqGM:EDUC

Stock Analysis Report

Educational Development

Executive Summary

Educational Development Corporation, a publishing company, operates as a trade co-publisher of the line of educational children’s books in the United States.

Snowflake

Fundamentals

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Educational Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.9%

EDUC

2.9%

US Retail Distributors

0.07%

US Market


1 Year Return

-41.7%

EDUC

15.8%

US Retail Distributors

8.9%

US Market

Return vs Industry: EDUC underperformed the US Retail Distributors industry which returned 15.8% over the past year.

Return vs Market: EDUC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

EDUCIndustryMarket
7 Day-9.9%2.9%0.07%
30 Day9.6%4.1%-0.3%
90 Day-2.4%7.6%-1.6%
1 Year-40.2%-41.7%17.7%15.8%11.3%8.9%
3 Year41.7%35.5%25.5%19.7%46.3%36.8%
5 Year261.1%214.7%41.8%30.8%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EDUC ($6.64) is trading above our estimate of fair value ($3.25)

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 (9.5x) compared to the Retail Distributors industry average (24x).

PE vs Market: EDUC is good value based on its PE Ratio (9.5x) compared to the US market (17.8x).


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 (2.1x) compared to the US Retail Distributors industry average (2.8x).


Next Steps

Future Growth

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

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDUC's forecast earnings growth (13.2% per year) is above the savings rate (2.7%).

Earnings vs Market: EDUC's earnings (13.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: EDUC's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if EDUC's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if EDUC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EDUC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Educational Development performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: EDUC's earnings have grown significantly by 39.1% 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 (-8.3%) over the past year, making it difficult to compare to the Retail Distributors industry average (7%).


Return on Equity

High ROE: EDUC's Return on Equity (21%) is considered high.


Return on Assets

ROA vs Industry: EDUC has a higher Return on Assets than the Retail Distributors industry average last year.


Return on Capital Employed

ROCE Improving: EDUC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Educational Development's financial position?


Financial Position Analysis

Short Term Liabilities: EDUC's short term assets ($41.1M) exceeds its short term liabilities ($21.7M)

Long Term Liabilities: EDUC's short term assets (41.1M) exceeds its long term liabilities (19.5M)


Debt to Equity History and Analysis

Debt Level: EDUC's debt to equity ratio (74.5%) is considered high

Reducing Debt: EDUC's debt to equity ratio has increased from 20.3% to 74.5% over the past 5 years.

Debt Coverage: EDUC's debt is well covered by operating cash flow (24.7%).

Interest Coverage: EDUC's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: EDUC's debt is covered by short term assets (assets are 2.018290x debt).


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Educational Development before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: EDUC's dividend (3.01%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: EDUC's dividend (3.01%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (28.6%), 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

What is the CEO of Educational Development's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Randall White (77yo)

33.8yrs

Tenure

US$405,400

Compensation

Mr. Randall W. White has been the Executive Chairman, President and Treasurer at Educational Development Corporation since September 1986, January 1986 and February 1984 respectively serves as its Chief Ex ...


CEO Compensation Analysis

Compensation vs. Market: Randall's total compensation ($USD405.40K) is about average for companies of similar size in the US market ($USD509.30K).

Compensation vs Earnings: Randall's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.9yrs

Average Tenure

50yo

Average Age

Experienced Management: EDUC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

8.6yrs

Average Tenure

77yo

Average Age

Experienced Board: EDUC's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: EDUC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$3,45614 Aug 19
Heather Cobb
EntityIndividual
Role
Head of Sales
Chief Sales & Marketing Officer
Shares535
Max PriceUS$6.46
BuyUS$6,77029 Jul 19
Ronald McDaniel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$6.77
BuyUS$34,50019 Jul 19
Daniel O'Keefe
EntityIndividual
Shares5,000
Max PriceUS$6.90
BuyUS$3,68121 Feb 19
Ronald McDaniel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares450
Max PriceUS$8.18
BuyUS$5,43322 Jan 19
Daniel O'Keefe
EntityIndividual
Shares701
Max PriceUS$7.75
BuyUS$9,91117 Jan 19
Daniel O'Keefe
EntityIndividual
Shares1,299
Max PriceUS$7.63
BuyUS$31414 Jan 19
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares38
Max PriceUS$8.25
SellUS$34,20014 Jan 19
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,800
Max PriceUS$9.00
BuyUS$1,21314 Jan 19
Daniel O'Keefe
EntityIndividual
Shares147
Max PriceUS$8.25
BuyUS$1,10614 Jan 19
Craig White
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares134
Max PriceUS$8.25
BuyUS$1,29514 Jan 19
Heather Cobb
EntityIndividual
Role
Head of Sales
Chief Sales & Marketing Officer
Shares157
Max PriceUS$8.25
BuyUS$31102 Jan 19
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares46
Max PriceUS$6.75
BuyUS$1,10702 Jan 19
Craig White
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares164
Max PriceUS$6.75
BuyUS$1,29602 Jan 19
Heather Cobb
EntityIndividual
Role
Head of Sales
Chief Sales & Marketing Officer
Shares192
Max PriceUS$6.75
BuyUS$1,22202 Jan 19
Daniel O'Keefe
EntityIndividual
Shares181
Max PriceUS$6.75
BuyUS$11,83420 Dec 18
Craig White
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares1,527
Max PriceUS$7.75
BuyUS$1,30220 Dec 18
Daniel O'Keefe
EntityIndividual
Shares168
Max PriceUS$7.75
BuyUS$1,58120 Dec 18
Heather Cobb
EntityIndividual
Role
Head of Sales
Chief Sales & Marketing Officer
Shares204
Max PriceUS$7.75
BuyUS$9,50220 Dec 18
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares1,226
Max PriceUS$7.75
SellUS$79,85220 Dec 18
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares7,656
Max PriceUS$10.43

Ownership Breakdown


Management Team

  • Randall White (77yo)

    Chairman

    • Tenure: 33.8yrs
    • Compensation: US$405.40k
  • Craig White (50yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: US$995.50k
  • Dan O’Keefe (50yo)

    Corporate Secretary & CFO

    • Tenure: 2.6yrs
    • Compensation: US$1.03m
  • Heather Cobb (43yo)

    Chief Sales & Marketing Officer

    • Tenure: 1.3yrs

Board Members

  • Randall White (77yo)

    Chairman

    • Tenure: 33.8yrs
    • Compensation: US$405.40k
  • John Clerico (77yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$1.60k
  • Ron McDaniel (81yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$1.60k
  • Kara Neal (75yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$1.60k
  • Betsy Richert (67yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$1.60k

Company Information

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


Key Information

  • Name: Educational Development Corporation
  • Ticker: EDUC
  • Exchange: NasdaqGM
  • Founded: 1965
  • Industry: Distributors
  • Sector: Retail
  • Market Cap: US$56.008m
  • Shares outstanding: 8.43m
  • Website: https://www.edcpub.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDUCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 1970

Biography

Educational Development Corporation, a publishing company, operates as a trade co-publisher of the line of educational children’s books in the United States. The company offers various books, including Tou ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:35
End of Day Share Price2019/10/22 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


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.