Scholastic Corp (NASDAQ: SCHL)

Sector: Communication Services Industry: Publishing CIK: 0000866729
Market Cap 1.25 Bn
P/B 1.58
P/E 28.48
P/S 0.67
ROIC (Qtr) 1.12
Div Yield % 1.48
Rev 1y % (Qtr) 1.19
Total Debt (Qtr) 400.90 Mn
Debt/Equity (Qtr) 0.43
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About

Scholastic Corporation, also known as SCHL, is a prominent entity in the children's book publishing and education industries. Established in 1920, it has its headquarters in New York City. The company's operations span across three primary segments: Children's Book Publishing and Distribution, Education Solutions, and International. Scholastic's main business activities revolve around the publication, distribution, and sale of children's books, media, and educational materials. These activities are carried out in various countries and regions,...

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Investment thesis

Bull case

  • Healthy cash reserves of 99.30M provide 2.11x coverage of short-term debt 47M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.71B provides 4.27x coverage of total debt 400.90M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.71B provide exceptional 7.54x coverage of deferred revenue 227.20M, showing strong service capability backing.
  • Retained earnings of 974.20M provide full 2.75x coverage of long-term debt 353.90M, indicating strong internal capital position.
  • Robust tangible asset base of 1.71B provides 3.76x coverage of working capital 455M, indicating strong operational backing.

Bear case

  • Operating cash flow of 86.30M barely covers its investment activities of (64.90M), with a coverage ratio of -1.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 86.30M provides thin coverage of dividend payments of (21.60M) with a -4 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 86.30M provides insufficient coverage of deferred revenue obligations of 227.20M, which is 0.38x, raising concerns about future service delivery capabilities.
  • Free cash flow of 21.40M provides weak coverage of capital expenditures of 64.90M, with a 0.33 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 19.70M show weak coverage of depreciation charges of 101.70M, with a 0.19 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Publishing
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NYT New York Times Co 10.36 Bn -238.81 4.11 0.00 Mn
2 PSO Pearson Plc 8.41 Bn 13.92 1.74 -
3 WLY John Wiley & Sons, Inc. 1.73 Bn 13.05 1.06 964.63 Mn
4 SCHL Scholastic Corp 1.25 Bn 28.48 0.67 400.90 Mn
5 LEE LEE ENTERPRISES, Inc 0.04 Bn -1.63 0.08 479.84 Mn
6 EDUC Educational Development Corp 0.01 Bn 2.94 0.47 6.95 Mn
7 TNMG TNL Mediagene 0.00 Bn -0.04 0.07 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 1.30
EV to Cash from Ops. EV/CFO 5.09 24.67
EV to Debt EV to Debt 3.28 2.97
EV to EBIT EV/EBIT 11.58 149.23
EV to EBITDA EV/EBITDA 7.29 17.29
EV to Free Cash Flow [EV/FCF] EV/FCF 8.79 24.30
EV to Market Cap EV to Market Cap 1.05 3.67
EV to Revenue EV/Rev 0.70 1.80
Price to Book Value [P/B] P/B 1.58 3.94
Price to Earnings [P/E] P/E 28.48 -26.01
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.16 1.18
Dividend Payout Ratio % Div Payout % (Qtr) -381.00 -34.74
Dividend per Basic Share Div per Share (Qtr) 0.80 0.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 94.01 26.60
Interest Coverage Int. cover (Qtr) 0.97 -0.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.27 954.28
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -28.87 8.48
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 5.68
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 11,712.36 1,653.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 28.15 -147.25
EBIT Growth (1y) % EBIT 1y % (Qtr) 885.00 119.12
EBT Growth (1y) % EBT 1y % (Qtr) 93.41 79.49
EPS Growth (1y) % EPS 1y % (Qtr) -16.67 81.09
FCF Growth (1y) % FCF 1y % (Qtr) -30.74 652.20
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.05 -5.44
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.81 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.14 0.11
Cash Ratio Cash Ratio (Qtr) 0.15 0.23
Current Ratio Curr Ratio (Qtr) 1.67 1.53
Debt to Equity Ratio Debt/Equity (Qtr) 0.43 -1.00
Interest Cover Ratio Int Coverage (Qtr) 0.97 -0.64
Times Interest Earned Times Interest Earned (Qtr) 0.97 -0.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.50 -3.80
EBIT Margin % EBIT Margin % (Qtr) 1.22 -11.37
EBT Margin % EBT Margin % (Qtr) -0.04 -16.08
Gross Margin % Gross Margin % (Qtr) 56.10 55.09
Net Profit Margin % Net Margin % (Qtr) -0.20 -17.99