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 and fair value.

Risks

  • Educational Development has significant price volatility in the past 3 months.
  • Educational Development is not covered by any analysts.

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

-4.7%

EDUC

-2.2%

US Retail Distributors

-0.2%

US Market


1 Year Return

-50.4%

EDUC

0.4%

US Retail Distributors

1.1%

US Market

EDUC underperformed the Retail Distributors industry which returned 0.9% over the past year.

EDUC underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

EDUCIndustryMarket
7 Day-4.7%-2.2%-0.2%
30 Day-4.7%6.0%2.5%
90 Day-23.2%-2.2%1.6%
1 Year-49.1%-50.4%2.0%0.4%3.4%1.1%
3 Year6.5%1.9%-2.4%-6.2%45.2%35.8%
5 Year178.6%142.8%42.3%31.4%62.6%44.8%

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 based on future cash flows and its price relative to the stock market?

7.54x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Educational Development's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Educational Development's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Educational Development is good value based on earnings compared to the US Retail Distributors industry average.

Educational Development is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Educational Development, we can't assess if its growth is good value.


Price Based on Value of Assets

Educational Development is good value based on assets compared to the US Retail Distributors industry average.


Next Steps

Future Growth

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

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Educational Development is high growth as no revenue estimate data is available.

Educational Development's earnings are expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

Unable to compare Educational Development's revenue growth to the United States of America market average as no estimate data is available.

Educational Development's earnings growth is positive but not above the United States of America market average.

Educational Development's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Educational Development will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Educational Development performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Educational Development has delivered over 20% year on year earnings growth in the past 5 years.

Educational Development's 1-year earnings growth is less than its 5-year average (7.2% vs 42.9%)

Educational Development's earnings growth has not exceeded the US Retail Distributors industry average in the past year (7.2% vs 12.2%).


Return on Equity

Educational Development has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Educational Development used its assets more efficiently than the US Retail Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Educational Development has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Educational Development's financial position?


Financial Position Analysis

Educational Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Educational Development's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Educational Development's level of debt (72.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (4% vs 72.7% today).

Debt is not well covered by operating cash flow (1.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

3.49%

Current Dividend Yield


Dividend Yield and Payments Analysis

Educational Development's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Educational Development's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Randall White (77yo)

33.7yrs

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

Randall's remuneration is about average for companies of similar size in United States of America.

Randall's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

The average tenure for the Educational Development management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.5yrs

Average Tenure

77yo

Average Age

The tenure for the Educational Development board of directors is about average.


Insider Trading

More shares have been bought than sold by Educational Development individual insiders in the past 3 months, but not in substantial volumes.


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
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
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
SellUS$34,20014 Jan 19
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares3,800
Max PriceUS$9.00
BuyUS$31414 Jan 19
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares38
Max PriceUS$8.25
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
BuyUS$5,33709 Oct 18
Randall White
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares593
Max PriceUS$9.00
BuyUS$6,21909 Oct 18
Craig White
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares691
Max PriceUS$9.00
BuyUS$22509 Oct 18
Heather Cobb
EntityIndividual
Role
Head of Sales
Chief Sales & Marketing Officer
Shares25
Max PriceUS$9.00

Ownership Breakdown


Management Team

  • Randall White (77yo)

    Chairman

    • Tenure: 33.7yrs
    • Compensation: US$405.40k
  • Craig White (50yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: US$995.50k
  • Dan O’Keefe (50yo)

    Corporate Secretary & CFO

    • Tenure: 2.5yrs
    • Compensation: US$1.03m
  • Heather Cobb (43yo)

    Chief Sales & Marketing Officer

    • Tenure: 1.2yrs

Board Members

  • Randall White (77yo)

    Chairman

    • Tenure: 33.7yrs
    • Compensation: US$405.40k
  • John Clerico (77yo)

    Lead Independent Director

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

    Director

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

    Director

    • Tenure: 8.3yrs
    • Compensation: US$1.60k
  • Betsy Richert (67yo)

    Director

    • Tenure: 7.1yrs
    • 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$48.333m
  • 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 Analysis2019/09/20 00:12
End of Day Share Price2019/09/19 00:00
Earnings2019/05/31
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.