Scholastic (SCHL) AI Stock Analysis

• Market Cap: $509.18M
• Dividend Yield: 4.19%
• Average Volume (3M): 239.50K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.91
• Revenue Growth: -3.10%
• EPS Growth: -58.47%
• Country: US
• Employees: 4,770
• Sector: Communication Services
• Sector Strength: 87
• Industry: Publishing
• EPS (TTM): -0.05
• Shares Outstanding: 25,858,398
• 10 Day Avg. Volume: 245,608
• 30 Day Avg. Volume: 239,503
• PEG Ratio: 1.85
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.52
• Enterprise Value/Market Cap: 2.58
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $20.00 ▲(4.00%Upside)

Scholastic's overall stock score reflects a balanced mix of stable financial performance and strategic corporate initiatives. The company's valuation appears high, and technical indicators suggest limited short-term upside. The recent corporate reorganization could positively impact future growth, but current market challenges and profitability issues temper the outlook.

Scholastic Business Overview & Revenue Model

Company Description

Scholastic Corporation publishes and distributes children's books worldwide. It operates in three segments: Children's Book Publishing and Distribution, Education Solutions, and International. The Children's Book Publishing and Distribution segment publishes and distributes children's books, e-books, media, and interactive products through its school book club and fair channels, as well as trade channels. Its original publications include the Harry Potter, Hunger Games, Bad Guys, Baby-Sitters Club graphic novels, Magic School Bus, Captain Underpants, Dog Man, Wings of Fire, Cat Kid Comic Club, Goosebumps, and Clifford The Big Red Dog; and licensed properties comprise the Peppa Pig and Pokemon. In addition, this segment publishes and creates books plus and novelty products for children, including titles, such as the Pastel Studio, Mini Clay World Candy Cart, LEGO Gear Bots, Never Touch series, and other titles under the Klutz and the Make Believe Ideas names; and non-fiction books under the Children's Press and Franklin Watts names. The Education Solutions segment publishes and distributes classroom magazines under the Scholastic News, Scholastic Scope, Storyworks, Let's Find Out, and Junior Scholastic names; supplemental and classroom materials and programs, and related support services; and print and on-line reference, and non-fiction products, as well as consulting services. The International segment offers original trade and educational publishing programs; distributes children's books, digital educational resources, and other materials through school-based book clubs, school-based book fairs, and trade channels; produces and distributes magazines; and provides online subscription services. The company distributes its products and services directly to schools and libraries through retail stores and the Internet. Scholastic Corporation was founded in 1920 and is headquartered in New York, New York.

How the Company Makes Money

Scholastic makes money primarily through its Children's Book Publishing and Distribution segment, which includes sales from trade publishing and book fairs. This segment is a significant revenue driver, leveraging both direct-to-consumer sales and partnerships with schools to distribute books and educational materials. The Educational Solutions segment contributes to revenue through the sale of curriculum materials, professional learning resources, and digital educational platforms aimed at enhancing classroom learning experiences. Scholastic also earns income internationally by adapting its successful models to local markets outside the United States. Key factors contributing to its earnings include brand recognition, a diverse product portfolio, and strategic partnerships with educational institutions and retailers.

Scholastic Financial Statement Overview

Summary

Scholastic exhibits a stable financial position with consistent revenue and gross profit margin. While the company maintains a healthy cash flow and manageable leverage, profitability metrics like net profit and ROE indicate room for improvement.

Income Statement

Scholastic shows a stable revenue base with a slight growth in the TTM period compared to the previous year. The gross profit margin remains solid at around 64.6% for TTM but has decreased slightly from 65.5% in the previous year. The EBIT margin of 1.8% is relatively low, indicating limited operational efficiency, however, it has shown improvement from previous periods. Net profit margin stands at 1.2% for TTM, reflecting modest profitability.

Balance Sheet

Scholastic's balance sheet reveals a moderate debt-to-equity ratio of 0.41, suggesting manageable leverage. The equity ratio is strong at 48%, indicating solid asset backing by equity. ROE of 1.98% in the TTM period is low, pointing to modest returns on shareholder investments. There is a noted decrease in stockholders' equity over time, which may warrant attention.

Cash Flow

The company demonstrates a healthy operating cash flow to net income ratio of 4.69 for TTM, indicating strong cash generation relative to net income. Free cash flow growth rate has declined but remains positive, indicating some level of reinvestment capacity. The free cash flow to net income ratio is 1.46, showing good cash conversion from profits.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.59B	1.59B	1.70B	1.64B	1.30B	1.49B
	Gross Profit
873.30M	884.60M	917.60M	877.40M	633.80M	736.10M
	EBIT
28.30M	14.50M	106.30M	97.40M	-10.90M	23.90M
	EBITDA
101.30M	85.10M	203.50M	175.80M	52.90M	-22.70M
	Net Income Common Stockholders
18.60M	12.10M	86.50M	81.00M	-10.90M	-43.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.70M	113.70M	224.50M	316.60M	366.50M	393.80M
	Total Assets
1.96B	1.67B	1.87B	1.94B	2.01B	2.03B
	Total Debt
390.70M	123.80M	101.00M	97.10M	282.60M	11.60M
	Net Debt
296.00M	10.10M	-123.50M	-219.50M	-83.90M	-382.20M
	Total Liabilities
1.02B	653.10M	340.00M	722.40M	826.00M	853.00M
	Stockholders Equity
941.30M	1.02B	1.16B	1.22B	1.18B	1.18B
Cash Flow		Free Cash Flow
27.10M	96.20M	86.90M	184.00M	23.80M	-63.90M
	Operating Cash Flow
87.20M	154.60M	148.90M	226.00M	71.00M	2.10M
	Investing Cash Flow
-252.20M	-89.70M	-99.60M	-43.20M	-50.50M	-95.70M
	Financing Cash Flow
150.90M	-176.10M	-139.50M	-229.20M	-52.30M	154.10M

Scholastic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 19.23 is above the 20-day moving average (MA) of 18.05, above the 50-day MA of 17.71, and below the 200-day MA of 21.98, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 66.14 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	80 Outperform	$9.14B	30.56	16.68%	1.28%	6.85%	21.26%
PSO	72 Outperform	$9.32B	17.78	10.99%	2.85%	-0.59%	24.06%
SCHL	67 Neutral	$509.18M	32.01	1.92%	4.19%	-3.10%	-58.47%
Sector *	61 Neutral	$14.74B	5.97	-3.99%	6.57%	2.79%	-32.84%
GCI	52 Neutral	$499.35M	11.28	26.63%	―	-7.04%	―
EDUC	46 Neutral	$11.42M	―	-12.24%	―	-35.97%	-2121.45%
LEE	46 Neutral	$41.05M	―	0.00%	―	-7.29%	-258.59%

Scholastic Corporate Events

Scholastic Announces New Children’s Book Group Integration

On May 29, 2025, Scholastic Corporation announced the integration of its Trade Publishing, Book Fairs, and Book Clubs divisions into a new Children’s Book Group, effective June 1, 2025. This strategic move, led by Sasha Quinton, aims to strengthen Scholastic’s position in children’s publishing by creating a cohesive approach across all channels. Jackie De Leo, a seasoned leader from Barnes & Noble, joins as Publisher and Chief Merchant to enhance the company’s editorial and merchandising capabilities. The reorganization is expected to expand Scholastic’s reach and value, ensuring its stories and characters continue to resonate with children globally.

Scholastic Announces Leadership Transition in Legal Department

On May 21, 2025, Scholastic Corporation announced the retirement of Andrew S. Hedden from his roles as Executive Vice President, General Counsel, and Secretary, effective May 31, 2025. Hedden, who has been with the company since 2008, will transition to a role as Senior Counselor. Chris Lick, currently the Deputy General Counsel, will succeed Hedden as Executive Vice President, General Counsel, and Secretary, effective June 1, 2025. This leadership change marks a significant transition within Scholastic’s legal department, potentially impacting its strategic direction and operations.