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

With a growth in Operating Profit of 6758.82%, the company declared Very Positive results in Feb 26

ROCE(HY) Highest at 6.92%
DIVIDEND PAYOUT RATIO(Y) Highest at 7.84%
RAW MATERIAL COST(Y) Fallen by -3.22% (YoY)

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 96.11%, 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 96.96%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 96.11% in the last 1 year, much higher than market (S&P 500) returns of 20.78%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

96.11%

0.58

43.28%

S&P 500

20.78%

1.56

13.28%

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

24What is working for the Company

ROCE(HY)

Highest at 6.92%

DIVIDEND PAYOUT RATIO(Y)

Highest at 7.84%

RAW MATERIAL COST(Y)

Fallen by -3.22% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.78 times

PRE-TAX PROFIT(Q)

Highest at USD 91.3 MM

NET PROFIT(Q)

Highest at USD 62.16 MM

EPS(Q)

Highest at USD 2.55

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 67.8 MM

CASH AND EQV(HY)

Lowest at USD 203.9 MM

Here's what is working for Scholastic Corp.

Pre-Tax Profit

At USD 91.3 MM has Grown at 427.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 62.16 MM has Grown at 2,105.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Pre-Tax Profit

Highest at USD 91.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 62.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.55

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 2.78 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend Payout Ratio

Highest at 7.84%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.22% (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.

Operating Cash Flow

Lowest at USD 67.8 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)

Cash and Eqv

Lowest at USD 203.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents