Why is Scholastic Corp. ?
1
The company has declared negative results for the last 5 consecutive quarters
- INTEREST(9M) At USD 13 MM has Grown at inf%
- NET PROFIT(Q) At USD 16.63 MM has Fallen at -67.05%
- OPERATING CASH FLOW(Y) Lowest at USD 124.2 MM
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 11.05%, its profits have fallen by -33.8%
- At the current price, the company has a high dividend yield of 382.2
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Scholastic Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Scholastic Corp.
7.75%
-0.24
54.25%
S&P 500
13.22%
0.61
20.17%
Quality key factors
Factor
Value
Sales Growth (5y)
1.80%
EBIT Growth (5y)
19.72%
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
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
5.17%
ROE (avg)
4.27%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
0.70
EV to EBIT
30.05
EV to EBITDA
6.97
EV to Capital Employed
0.76
EV to Sales
0.56
PEG Ratio
NA
Dividend Yield
382.24%
ROCE (Latest)
2.53%
ROE (Latest)
3.74%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Bullish
Technical Movement
5What is working for the Company
NET PROFIT(HY)
Higher at USD 13.53 MM
RAW MATERIAL COST(Y)
Fallen by 0.94% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.05 times
-19What is not working for the Company
INTEREST(9M)
At USD 13 MM has Grown at inf%
NET PROFIT(Q)
At USD 16.63 MM has Fallen at -67.05%
OPERATING CASH FLOW(Y)
Lowest at USD 124.2 MM
DEBT-EQUITY RATIO
(HY)
Highest at 29.1 %
CASH AND EQV(HY)
Lowest at USD 218.7 MM
Here's what is working for Scholastic Corp.
Inventory Turnover Ratio
Highest at 3.05 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.94% (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
Depreciation
Highest at USD 26.2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Scholastic Corp.
Interest
At USD 13 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Net Profit
At USD 16.63 MM has Fallen at -67.05%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Debt-Equity Ratio
Highest at 29.1 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Operating Cash Flow
Lowest at USD 124.2 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Cash and Eqv
Lowest at USD 218.7 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






