SCHL

Scholastic Corporation

Fundamental data last updated:September 26, 2026

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company profile

SECTOR

Communication Services

industry

Publishing

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

16.57

Market Cap ($M USD)

$1.03B

Forward P/E

13.86

PEG

0.71

PRICE TO SALES

0.64

PRICE TO BOOK

1.19

EV / EBITDA

10.77

5-Year Average P/E

Free Cash Flow Yield

2.15%

DCF Value

$45.44

Graham Number

$43.66

Price to FCF

46.50

EV to FCF

54.64

Earnings Yield

6.04%

FCF Yield

2.15%

DIVIDEND

Yield

1.96%

Annual Payout

$0.80

Payout Ratio

33.49%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.47

Next Year EPS Growth Estimate

$2.95

Next Year Revenue Growth Estimate

$1.72B

Return on Equity (ROE)

6.91%

FREE CASH FLOW

Operating Margin

1.81%

Debt-to-Equity

0.40

Piotroski F-Score

7

Altman Z-Score

2.51

Return on Invested Capital (ROIC)

2.52%

Current Ratio

1.18

Quick Ratio

0.73

Net Debt to EBITDA

1.61

Interest Coverage

2.00

Gross Profit margin

56.22%

FCF PER SHARE

$0.87

REVENUE PER SHARE

$63.55

Gainseekers Quantitative Analysis

Summary

Scholastic Corporation’s valuation presents a compelling case for deep value investors. The stock has traded significantly below its DCF Value, suggesting a potential mispricing by the market. With a Forward P/E of 13.59 and an Earnings Yield of 6.16%, the company appears attractively priced relative to its earnings potential. The Altman Z-score of 2.49 indicates moderate financial health, suggesting the company is not in immediate distress. Overall, the market seems to underestimate its intrinsic value, offering a potential opportunity for savvy investors.

AI Exposure / Tech Reliance

In the rapidly evolving publishing industry, Scholastic's ability to adapt to AI and tech shifts is crucial. As a traditional publisher, integrating AI for personalized content delivery and digital distribution could enhance its competitive edge. However, its resilience will depend on how effectively it leverages technology to streamline operations and engage with a tech-savvy audience.

The Bull Case

For value and GARP investors, Scholastic offers several attractive features. The company's Piotroski F-Score of 7 indicates strong financial health, while its ROIC of 2.62% suggests efficient capital allocation. Despite a modest FCF Yield of 2.19%, the operating margin of 1.88% reflects potential for improvement. These metrics suggest that Scholastic has the pricing power and operational efficiency to capitalize on future growth opportunities.

The Bear Case

Despite its strengths, Scholastic faces notable challenges. The Price to FCF ratio of 45.59 highlights its struggle to convert earnings into free cash flow, raising concerns about cash flow sustainability. Additionally, the stock's proximity to its 52-week high suggests it may be technically overextended. With an EV to FCF of 53.73, the valuation appears stretched, potentially limiting upside for cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

1.04

Insider Buying % (6 Mo)

Distance to 52-Week High

6.09%

Distance to 52-Week Low

58.90%

EARNINGS SURPRISE %

59.46%

50-DAY SMA

$39.41

200-DAY SMA

$32.24

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.