Scholastic Corporation
$42.10
-1.6%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -611.9).
Valuation inputs: P/E -611.9, earnings yield N/A, momentum -1.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -0.2%, ROIC +1.4%).
Profitability stack: net margin -0.1%, ROE -0.2%, ROIC +1.4%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +51.5%, momentum -1.6%, net margin -0.1%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Scholastic Corporation Market vs Earnings Trajectory
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Scholastic Corporation Fair Value Envelope
Scholastic Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Scholastic Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Scholastic Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Scholastic Corporation Street Expectations Map
No Target Data
No analyst price targets available for schl.
Scholastic Corporation Insider Positioning
During the last 12 months, insiders have purchased $3.26M and sold $771K worth of SCHL shares, resulting in $2.49M of net buying activity.
3 Months
0
0.00
10.0K
394.00K
-394K
-$394K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
122.6K
3.23M
14.2K
377.39K
+2.9M
+$2.86M
9-12 Months
784
24.99K
0
0.00
+25K
+$25K
Top Buyers
Lucchese Iole
Director, Officer: Evp & Chief Strategy Officer
$540K
Quinton Sasha
Officer: Evp, Pres Schl Reading Events
$465K
Glover Haji
Officer: Evp & Chief Financial Officer
$375K
Mathews Jeffrey
Officer: Evp, Chief Growth Officer
$369K
Lick Chris
Officer: Evp, General Counsel
$240K
Top Sellers
Hukkanen Paul
Officer: Svp, Chief Acct Off
$419K
Lucchese Iole
Director, Officer: Evp & Chief Strategy Officer
$160K
Quinton Sasha
Officer: Evp, Pres Schl Reading Events
$83K
Mathews Jeffrey
Officer: Evp, Chief Growth Officer
$66K
Glover Haji
Officer: Evp & Chief Financial Officer
$32K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $2.49M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider buyers and 5 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Compelling insider conviction: The combination of strong buy/sell ratio and multiple buyers suggests insiders see attractive risk/reward. Consider this alongside fundamental analysis for confirmation.
schl Dividend History
Learning Layer
Related Guides
Build conviction on SCHL by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.