Scholastic (SCHL) AI Stock Analysis

• Market Cap: $722.74M
• Dividend Yield: 2.78%
• Average Volume (3M): 382.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 0.97%
• EPS Growth: -197.80%
• Country: US
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): -2.52
• Shares Outstanding: 24,310,658
• 10 Day Avg. Volume: 183,400
• 30 Day Avg. Volume: 382,495
• PEG Ratio: 2.15
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 6.63
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 1.14
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: $37.00
• Price Target Upside: 28.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $30.00 ▲(4.35% Upside)

Scholastic's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. Technical analysis shows positive momentum, providing some optimism. Valuation concerns due to negative earnings are partially offset by a decent dividend yield. The earnings call highlights both strategic achievements and ongoing challenges, contributing to a balanced outlook.

Scholastic Business Overview & Revenue Model

Company Description

Scholastic Corporation (SCHL) is a global publishing, education, and media company known for its wide range of children's books, educational materials, and various multimedia products. Established in 1920, the company operates primarily in the children's publishing sector, providing a diverse portfolio of books, magazines, and digital content aimed at fostering literacy and a love of reading. Scholastic also engages in educational publishing, offering curriculum and assessment resources for schools, as well as operating the popular Scholastic Book Clubs and Book Fairs, which promote reading among students.

How the Company Makes Money

Scholastic generates revenue through multiple key streams, primarily from its publishing and educational segments. The company's core revenue sources include the sale of children's books and educational materials, which are distributed through retail channels, direct sales, and its own book clubs and fairs. Additionally, Scholastic earns revenue from licensing its intellectual properties for adaptations in various media, including films and television. The company benefits from ongoing partnerships with schools and educational institutions, which contribute significantly to its sales of classroom resources and curriculum materials. Seasonal sales during back-to-school periods and strong marketing campaigns further enhance its revenue potential.

Scholastic Financial Statement Overview

Summary

Scholastic faces significant financial challenges with declining revenue and profitability. The income statement shows a negative net profit margin and a substantial revenue decline. The balance sheet is moderate with manageable leverage, but cash flow analysis indicates cash generation challenges. Improving operational efficiency and cash flow is critical for financial stability.

Income Statement

Scholastic's income statement shows a challenging period with declining revenue and profitability. The TTM data indicates a negative net profit margin and a significant revenue decline of 71.4%. Gross profit margin remains moderate at 48.4%, but the negative net profit margin of -0.65% highlights profitability issues. EBIT and EBITDA margins are low, suggesting operational inefficiencies. The company needs to address these challenges to improve financial health.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.50 in the TTM, indicating manageable leverage. However, the return on equity is negative, reflecting recent losses. The equity ratio is stable, suggesting a solid asset base. While leverage is under control, improving profitability is crucial for enhancing shareholder returns.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 41.5% in the TTM, indicating cash generation challenges. The operating cash flow to net income ratio is 0.13, suggesting limited cash flow relative to earnings. The free cash flow to net income ratio of 0.50 indicates some ability to generate cash despite net losses. Improving cash flow efficiency is essential for financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.61B	1.63B	1.59B	1.70B	1.64B	1.30B
Gross Profit	882.70M	841.00M	884.60M	917.60M	877.40M	633.80M
EBITDA	89.00M	80.40M	85.10M	203.50M	175.80M	52.90M
Net Income	-10.50M	-1.90M	12.10M	86.50M	81.00M	-10.90M
Balance Sheet
Total Assets	1.95B	1.95B	1.67B	1.87B	1.94B	2.01B
Cash, Cash Equivalents and Short-Term Investments	94.30M	124.00M	113.70M	224.50M	316.60M	366.50M
Total Debt	443.20M	374.50M	123.80M	101.00M	97.10M	282.60M
Total Liabilities	1.08B	1.00B	653.10M	340.00M	722.40M	826.00M
Stockholders Equity	878.00M	946.50M	1.02B	1.16B	1.22B	1.18B
Cash Flow
Free Cash Flow	42.10M	72.00M	96.20M	86.90M	184.00M	23.80M
Operating Cash Flow	84.30M	124.20M	154.60M	148.90M	226.00M	71.00M
Investing Cash Flow	-67.00M	-252.90M	-89.70M	-99.60M	-43.20M	-50.50M
Financing Cash Flow	-7.80M	137.30M	-176.10M	-139.50M	-229.20M	-52.30M

Scholastic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCHL, the sentiment is Positive. The current price of 28.75 is above the 20-day moving average (MA) of 28.69, above the 50-day MA of 27.26, and above the 200-day MA of 21.69, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 57.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCHL.

Scholastic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NYT	―	$9.13B	29.56	17.13%	1.19%	7.82%	19.39%
PSO	―	$8.99B	16.52	11.74%	2.12%	1.93%	34.40%
GCI	―	$769.74M	8.09	47.54%	―	-8.00%	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SCHL	―	$722.74M	―	-1.14%	2.78%	0.97%	-197.80%
EDUC	―	$13.22M	-2.88	-11.27%	―	-30.65%	-62.03%
LEE	―	$26.93M	-0.63	―	―	-5.68%	-127.26%

Scholastic Corporate Events

Scholastic Increases Shares in Stock Purchase Plan

On September 17, 2025, Scholastic Corporation held its annual meeting of stockholders where Class A stockholders approved an amendment to the Management Stock Purchase Plan, increasing the authorized shares by 100,000 to a total of 700,000. This decision reflects the company’s strategic move to enhance its stock incentive plans, potentially impacting its financial operations and shareholder value positively.

The most recent analyst rating on (SCHL) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Scholastic stock, see the SCHL Stock Forecast page.

Scholastic’s Earnings Call: Growth Amidst Challenges

The recent earnings call for Scholastic presented a balanced sentiment, highlighting both achievements and challenges. While the company celebrated strong growth in children’s book publishing, international markets, and entertainment initiatives, it also faced declines in overall revenue and challenges in the education segment due to volatile funding. Additionally, an increase in net debt was noted. The call reflected a mix of positive and negative developments, with significant achievements in strategic initiatives but notable challenges in revenue and specific segments.

Scholastic Reports Q1 Fiscal 2026 Results

Scholastic Corporation, a global leader in children’s publishing, education, and media, reported its fiscal 2026 first-quarter results, highlighting its strategic initiatives and financial performance. The company, known for its iconic children’s books and educational resources, operates in over 135 countries, fostering literacy and learning among young readers.

Scholastic’s Earnings Call Highlights Growth and Challenges

The recent earnings call for Scholastic showcased a generally positive sentiment, highlighting strong financial performance, successful book launches, and strategic acquisitions that have spurred growth across several segments. Despite these achievements, the company acknowledged ongoing challenges in the Education and Entertainment segments, as well as consumer spending pressures that continue to affect revenue per fair.