Scholastic Corp. (SCHL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

John Wiley & Sons, Inc.

Scholastic Corp.

Value Line, Inc.

Gannett Co., Inc.

Educational Development Corp.

DallasNews Corp.

Why is Scholastic Corp. ?

The company is Net-Debt Free

Positive results in May 26

NET PROFIT(HY) Higher at USD 71.82 MM
ROCE(HY) Highest at 6.68%
DIVIDEND PAYOUT RATIO(Y) Highest at 44.66%

With ROE of 8.11%, it has a fair valuation with a 1.41 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 70.30%, its profits have risen by 100.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 103.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.04% over the previous quarter.

Market Beating Performance

The stock has generated a return of 70.30% in the last 1 year, much higher than market (S&P 500) returns of 22.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Scholastic Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Scholastic Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Scholastic Corp.

70.3%

0.59

38.13%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.41%

EBIT Growth (5y)

21.33%

EBIT to Interest (avg)

30.97

Debt to EBITDA (avg)

0.36

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.40

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

96.96%

ROCE (avg)

5.17%

ROE (avg)

4.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.41

EV to EBIT

39.72

EV to EBITDA

8.86

EV to Capital Employed

1.44

EV to Sales

0.73

PEG Ratio

0.14

Dividend Yield

103.78%

ROCE (Latest)

3.62%

ROE (Latest)

8.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(HY)

Higher at USD 71.82 MM

ROCE(HY)

Highest at 6.68%

DIVIDEND PAYOUT RATIO(Y)

Highest at 44.66%

RAW MATERIAL COST(Y)

Fallen by -2.61% (YoY

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 50.9 MM

PRE-TAX PROFIT(Q)

At USD 14.9 MM has Fallen at -71.78%

DEBT-EQUITY RATIO (HY)

Highest at 37.91 %

NET PROFIT(Q)

At USD 9.66 MM has Fallen at -41.91%

Here's what is working for Scholastic Corp.

Dividend Payout Ratio

Highest at 44.66%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.61% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Scholastic Corp.

Pre-Tax Profit

At USD 14.9 MM has Fallen at -71.78%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Cash Flow

Lowest at USD 50.9 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 9.66 MM has Fallen at -41.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 37.91 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio