Scholastic Corporation
Scholastic Corporation Fundamental Analysis
Scholastic Corporation (SCHL) shows weak financial fundamentals with a PE ratio of 15.16, profit margin of 4.88%, and ROE of 6.91%. The company generates $1.2B in annual revenue with weak year-over-year growth of 2.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SCHL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSCHL demonstrates superior asset utilization.
Valuation Score
ExcellentSCHL trades at attractive valuation levels.
Growth Score
WeakSCHL faces weak or negative growth trends.
Financial Health Score
ExcellentSCHL maintains a strong and stable balance sheet.
Profitability Score
WeakSCHL struggles to sustain strong margins.
Key Financial Metrics
Is SCHL Expensive or Cheap?
P/E Ratio
SCHL trades at 15.16 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SCHL's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Scholastic Corporation at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.41 times EBITDA. This signals the market has high growth expectations.
How Well Does SCHL Make Money?
Net Profit Margin
For every $100 in sales, Scholastic Corporation keeps $4.88 as profit after all expenses.
Operating Margin
Core operations generate 2.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.91 in profit for every $100 of shareholder equity.
ROA
Scholastic Corporation generates $10.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Scholastic Corporation generates limited operating cash flow of $83.15M, signaling weaker underlying cash strength.
Free Cash Flow
Scholastic Corporation produces free cash flow of $43.36M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.76 in free cash annually.
FCF Yield
SCHL converts 4.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SCHL Stacks Against Its Sector Peers
| Metric | SCHL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.16 | 22.47 | Better (Cheaper) |
| ROE | 6.91% | 1060.00% | Weak |
| Net Margin | 4.88% | -63619.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 1.33 | Strong (Low Leverage) |
| Current Ratio | 1.86 | 1.62 | Neutral |
| ROA | 10.42% | -611210.00% (disorted) | Strong |
SCHL outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Scholastic Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.88%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
94.57%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
7305.97%
Industry Style: Growth, Technology, Streaming
High Growth