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Scholastic
(NASDAQ:SCHL)
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Rating:48Neutral
Price Target:
$38.00
▼(-4.88% Downside)
Action:Reiterated
Date:09/29/26
The score is held down primarily by weakened financial performance (sharp TTM revenue contraction, higher leverage, and negative free cash flow) and bearish technical signals (price below key moving averages with negative MACD). Offsets include a supportive dividend yield and a generally positive earnings call with reaffirmed FY2027 growth/EBITDA/FCF guidance, but current fundamentals and trend remain the dominant constraints.
Positive Factors
Book Fairs scale and momentum
Book Fairs combines Scholastic’s brand, content and operating scale with direct access to schools, creating a differentiated distribution channel. Ahead-of-year bookings and fair counts indicate continued participation and provide a durable platform for revenue growth and operating leverage.
Negative Factors
Sharp revenue contraction
The steep TTM revenue contraction weakens the foundation for durable earnings and raises uncertainty about the company’s near-term operating scale. Even with a solid gross margin and a return to positive earnings, sustained top-line pressure can reduce reinvestment capacity and limit leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Book Fairs scale and momentum
Book Fairs combines Scholastic’s brand, content and operating scale with direct access to schools, creating a differentiated distribution channel. Ahead-of-year bookings and fair counts indicate continued participation and provide a durable platform for revenue growth and operating leverage.
Read all positive factors
Scholastic (SCHL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$710.60M
Dividend Yield2.2%
Average Volume (3M)471.35K
Price to Earnings (P/E)25.6
Beta (1Y)0.71
Revenue Growth-2.53%
EPS GrowthN/A
CountryUS
Employees5,848
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)1.51
Shares Outstanding17,581,345
10 Day Avg. Volume543,380
30 Day Avg. Volume471,346
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.35
Price to Sales (P/S)0.64
P/FCF Ratio405.43
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit1.31
Enterprise Value/Ebitda3.80
Forecast
1Y Price Target
$35.00Price Target Upside-12.39% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.61
Revenue Forecast (FY)$1.62B
Scholastic Business Overview & Revenue Model
Company Description
Scholastic Corporation, a company founded in 1920 and headquartered in New York, New York, specializes in the global creation and distribution of literary and educational materials for young people. Its operations are structured into three key bus...
How the Company Makes Money
Scholastic primarily makes money by creating, publishing, sourcing, and distributing children’s books and educational materials through school-based and consumer channels. A major revenue driver is its school-based distribution model, including Bo...
Scholastic Earnings Call Summary
Earnings Call Date:Sep 24, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
Management expressed confidence in the fiscal 2027 plan and reaffirmed full-year guidance, supported by strong Book Fairs indicators, a major franchise-led publishing slate, significant Entertainment growth, improved International operating performance and lower net debt. These positives were partially offset by first-quarter revenue declines, higher adjusted losses, Education market pressure, increased overhead and cash use, and expected International operating-income pressure from inflation and fuel and freight costs. Overall, the call was positive.Positive Updates
Full-Year Fiscal 2027 Guidance Reaffirmed
Scholastic reaffirmed its fiscal 2027 outlook for revenue growth of approximately 2% to 4%, adjusted EBITDA of approximately $135 million to $145 million, and full-year free cash flow of approximately $35 million to $40 million. Management expects year-over-year revenue growth to begin in the second quarter and continue through the balance of the year.
Negative Updates
Consolidated Revenue Decline
First-quarter revenue decreased 4% to $216.8 million from $225.6 million, primarily reflecting lower Education and Children's Book Publishing and Distribution revenue and the elimination of rental income following the sale-leaseback transactions, partly offset by higher Entertainment revenue.
Read all updates
Q1-2027 Updates
Positive
Negative
Full-Year Fiscal 2027 Guidance Reaffirmed
Scholastic reaffirmed its fiscal 2027 outlook for revenue growth of approximately 2% to 4%, adjusted EBITDA of approximately $135 million to $145 million, and full-year free cash flow of approximately $35 million to $40 million. Management expects year-over-year revenue growth to begin in the second quarter and continue through the balance of the year.
Read all positive updates
Company Guidance
Scholastic affirmed its fiscal 2027 outlook for revenue growth of approximately 2% to 4%, adjusted EBITDA of approximately $135 million to $145 million, and full year free cash flow of approximately $35 million to $40 million; year-over-year revenue growth is expected to begin in the second quarter and continue through the balance of the year, with Book Fairs expected to deliver higher fair count and modest revenue per fair growth, Trade revenues expected to be stronger in the second quarter and for the full year, Entertainment expected to deliver growth and improved profitability for the full year, Education targeted for an improved performance for the full year with improved profitability, and International expected to achieve full year revenue growth while operating income is expected to be modestly lower.Scholastic Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.57B | 1.58B | 1.63B | 1.59B | 1.70B | 1.64B |
| Gross Profit | 863.00M | 833.30M | 906.70M | 884.60M | 917.60M | 877.40M |
| EBITDA | 296.70M | 183.00M | 105.30M | 85.10M | 178.40M | 157.50M |
| Net Income | 56.60M | 56.70M | -1.90M | 12.10M | 86.30M | 81.00M |
Balance Sheet | ||||||
| Total Assets | 1.73B | 1.73B | 1.95B | 1.67B | 1.95B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 106.80M | 134.90M | 124.00M | 113.70M | 224.50M | 316.60M |
| Total Debt | 509.70M | 387.50M | 374.50M | 122.10M | 103.20M | 97.10M |
| Total Liabilities | 1.07B | 977.30M | 1.00B | 653.10M | 786.80M | 722.40M |
| Stockholders Equity | 656.50M | 750.80M | 946.50M | 1.02B | 1.16B | 1.22B |
Cash Flow | ||||||
| Free Cash Flow | -14.40M | 2.50M | 72.00M | 96.20M | 86.90M | 184.00M |
| Operating Cash Flow | 38.10M | 50.90M | 124.20M | 154.60M | 148.90M | 226.00M |
| Investing Cash Flow | 403.40M | 405.80M | -252.90M | -89.70M | -99.60M | -43.20M |
| Financing Cash Flow | -428.90M | -446.00M | 137.30M | -176.10M | -139.50M | -229.20M |
Scholastic Technical Analysis
Positive
39.95
Price Trends
38.00
Positive
40.70
Negative
38.17
Positive
Market Momentum
0.26
Negative
64.76
Neutral
90.83
Negative
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 39.95 is above the 20-day moving average (MA) of 35.84, above the 50-day MA of 38.00, and above the 200-day MA of 38.17, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 90.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCHL.
Scholastic Risk Analysis
Scholastic disclosed 28 risk factors in its most recent earnings report. Scholastic reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Scholastic Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $16.26B | 31.08 | 6.62% | 0.69% | 1.06% | 26.22% | |
64 Neutral | $10.20B | 25.20 | 9.13% | 2.04% | 7.10% | -22.39% | |
62 Neutral | $2.52B | 13.17 | 25.28% | 2.87% | -0.27% | 111.79% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $11.08M | 3.71 | 7.17% | 5.49% | -34.31% | ― | |
50 Neutral | $1.00B | -25.26 | -25.00% | 17.25% | -6.67% | -134.92% | |
48 Neutral | $710.60M | 25.56 | 7.05% | 2.20% | -2.53% | ― |
* Communication Services Sector Average
SCHL
Scholastic
39.40
12.04
43.98%
EDUC
Educational Development
1.30
-0.12
-8.45%
WLY
John Wiley Sons Cl A
51.32
15.99
45.25%
NWSA
News Corp
29.38
3.49
13.46%
PSO
Pearson
17.22
3.53
25.75%
TDAY
USA TODAY
6.88
3.39
97.13%
Scholastic Corporate Events
Executive/Board ChangesShareholder Meetings
Scholastic Shareholders Endorse Board, Executive Pay Structure
Positive
Sep 21, 2026
At Scholastic Corporation’s annual meeting of stockholders held on September 16, 2026, holders of Class A shares unanimously elected eight directors, including Peter Warwick and Iole Lucchese, and approved fiscal 2026 compensation for the co...
Business Operations and StrategyStock Buyback
Scholastic Executes Targeted Share Repurchase From Former CEO Estate
Positive
Aug 27, 2026
On August 26, 2026, Scholastic Corporation repurchased 289,624 common shares from the Estate of former chairman and CEO M. Richard Robinson Jr. in a private transaction at $39.7603 per share, a 3% discount to the prior day’s closing price, f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.