Recent News
On March 23, 2026 Scholastic announced a modified Dutch‑auction tender offer to repurchase up to $200 million of common stock at $36.00–$40.00 per share. The offer expired April 20; preliminary results reported April 21 indicated the company expected to purchase 2,852,735 shares at $40.00 per share, and final results posted April 23 confirmed completion details. Separately, on April 7 Scholastic joined Little Free Library and author Dav Pilkey to launch 100 themed Little Free Libraries nationwide.
Technical Analysis
Directional indicators show a strong trend: ADX at 47.93 signals very strong trend strength while DI+ sits at 34.83 and is increasing and DI‑ at 7.99 is decreasing, which supports a bullish directional bias; that bullish bias ties to the expected support that a sizable buyback could provide to supply dynamics.
Momentum measures conflict with the directional bias: MACD (0.96) has peak & reversal characteristics and sits below its signal (1.02), indicating momentum has turned bearish; that suggests recent upside may lose steam even as trend strength remains high.
MRO at 30.67 with a peak & reversal suggests price currently exceeds the internal target and carries downside pressure; this amplifies the bearish momentum signal and argues for potential mean reversion toward structural support levels tied to the tender’s float reduction.
RSI at 60.94 with a peak & reversal also signals an exit from the recent overbought area and adds to short‑term downward bias; the convergence of MACD, MRO and RSI peak‑and‑reversals points to fading momentum despite the strong ADX/DI configuration.
Price sits at $40.23 above the 50‑day ($36.98) and 200‑day ($30.52) averages, with the 12‑day EMA increasing at $40.07; price trades near the upper Bollinger band (~$40.98) and just above the SuperTrend lower support at $38.03, so expect intraday resistance near the upper band and immediate support near $38.00 if momentum continues to cool.
Volume currently below short‑term average (today’s 391,243 vs 10‑day avg 950,626) weakens conviction behind the recent move; volatility measures remain muted (42‑day ~2%), so follow‑through moves may require renewed participation or news catalysts tied to the tender program.
Fundamental Analysis
Operating results show strain: EBIT totaled -$26,900,000 and EBITDA -$3,700,000, producing an EBIT margin of -8.17% (QoQ change -149.23%, YoY change +16.17%). That operating margin sits well below the industry peer mean of 14.38% and industry peer range (low 9.97% to high 22.68%), indicating operating profitability lags peer performance.
Net income from continuing operations reported $62,500,000, while EPS actual stood at -$0.15 versus an EPS estimate of -$0.36, yielding an EPS surprise of $0.21 or a 58.33% beat; the EPS beat reflects items that lifted net income but did not translate into positive EBIT. Forward EPS sits at $0.6675 with a forward PE of 45.99.
Cash and liquidity metrics present mixed signals: cash and short‑term investments $104.6M and begin/end period cashflow roughly stable, while free cash flow measured -$43.9M (free cash flow yield -5.25%) and operating cash flow -$30.5M indicate negative cash generation for the period. Cash conversion cycle days at 134.4 remain long relative to the industry peer mean of ~9 days, reflecting working capital intensity in the school/channel seasonality.
Capital structure shows moderate leverage: total debt $284.6M versus total equity $871.9M (debt to equity 0.33). Interest coverage remains negative (-6.11x) owing to operating losses; cost of debt remains low at ~0.893%.
Market multiples present valuation dispersion: P/B of 0.96 sits below the industry peer mean of 1.33 but within the peer range (low 0.45; high 2.27); trailing PE is 12.90 versus an industry peer mean of 66.14, while EV multiple appears distorted by negative operating earnings. WMDST values the stock as over‑valued, reflecting the combination of weak operating margins, negative free cash flow, and elevated forward multiples despite balance sheet cash and the ongoing buyback program.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-02-28 |
| REPORT DATE: | 2026-03-19 |
| NEXT REPORT DATE: | 2026-06-18 |
| CASH FLOW | Begin Period Cash Flow | $ 99.3 M |
| Operating Cash Flow | $ -30.50 M | |
| Capital Expenditures | $ -13.40 M | |
| Change In Working Capital | $ -14.60 M | |
| Dividends Paid | $ -5.10 M | |
| Cash Flow Delta | $ 5.3 M | |
| End Period Cash Flow | $ 104.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 329.1 M | |
| Forward Revenue | $ 19.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 150.3 M | |
| Depreciation | $ 23.2 M | |
| Depreciation and Amortization | $ 23.2 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 356.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 178.8 M | |
| EBITDA | $ -3.70 M | |
| EBIT | $ -26.90 M | |
| Operating Income | $ -26.90 M | |
| Interest Income | $ -800.00 K | |
| Interest Expense | — | |
| Net Interest Income | $ -800.00 K | |
| Income Before Tax | $ 91.8 M | |
| Tax Provision | $ 29.3 M | |
| Tax Rate | 31.9 % | |
| Net Income | $ 62.5 M | |
| Net Income From Continuing Operations | $ 62.5 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.36 | |
| EPS Actual | $ -0.15 | |
| EPS Difference | $ 0.21 | |
| EPS Surprise | 58.333 % | |
| Forward EPS | $ 0.67 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 282.0 M | |
| Net Tangible Assets | $ 589.9 M | |
| Total Current Assets | $ 735.3 M | |
| Cash and Short-Term Investments | $ 104.6 M | |
| Cash | $ 104.6 M | |
| Net Receivables | $ 248.3 M | |
| Inventory | $ 282.5 M | |
| Long-Term Investments | $ 97.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 128.5 M | |
| Short-Term Debt | $ 5.6 M | |
| Total Current Liabilities | $ 621.1 M | |
| Net Debt | — | |
| Total Debt | $ 284.6 M | |
| Total Liabilities | $ 908.9 M | |
| EQUITY | ||
| Total Equity | $ 871.9 M | |
| Retained Earnings | $ 1.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 34.27 | |
| Shares Outstanding | 21.742 M | |
| Revenue Per-Share | $ 12.94 | |
| VALUATION | Market Capitalization | $ 837.0 M |
| Enterprise Value | $ 1.0 B | |
| Enterprise Multiple | -274.874 | |
| Enterprise Multiple QoQ | -3166.621 % | |
| Enterprise Multiple YoY | -360.474 % | |
| Enterprise Multiple IPRWA | high: 36.05 median: 36.05 mean: 33.056 low: -13.043 SCHL: -274.874 |
|
| EV/R | 3.09 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.042 | |
| Asset To Liability | 1.959 | |
| Debt To Capital | 0.246 | |
| Debt To Assets | 0.16 | |
| Debt To Assets QoQ | -17.444 % | |
| Debt To Assets YoY | 5299.324 % | |
| Debt To Assets IPRWA | high: 0.626 mean: 0.282 median: 0.235 SCHL: 0.16 low: 0.003 |
|
| Debt To Equity | 0.326 | |
| Debt To Equity QoQ | -21.277 % | |
| Debt To Equity YoY | 5198.864 % | |
| Debt To Equity IPRWA | high: 1.197 mean: 0.592 median: 0.461 SCHL: 0.326 low: 0.003 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.96 | |
| Price To Book QoQ | 25.921 % | |
| Price To Book YoY | 60.285 % | |
| Price To Book IPRWA | high: 2.273 mean: 1.33 median: 1.19 SCHL: 0.96 low: 0.451 |
|
| Price To Earnings (P/E) | 12.902 | |
| Price To Earnings QoQ | 18.828 % | |
| Price To Earnings YoY | -103.054 % | |
| Price To Earnings IPRWA | high: 77.003 mean: 66.139 median: 52.993 SCHL: 12.902 low: -20.985 |
|
| PE/G Ratio | 0.737 | |
| Price To Sales (P/S) | 2.543 | |
| Price To Sales QoQ | 97.438 % | |
| Price To Sales YoY | 51.311 % | |
| Price To Sales IPRWA | high: 5.038 median: 3.339 mean: 3.097 SCHL: 2.543 low: 2.086 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 45.993 | |
| Forward PE/G | 2.626 | |
| Forward P/S | 35.704 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.212 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.174 | |
| Asset Turnover Ratio QoQ | -37.534 % | |
| Asset Turnover Ratio YoY | 3.916 % | |
| Asset Turnover Ratio IPRWA | high: 0.237 median: 0.21 mean: 0.185 SCHL: 0.174 low: 0.088 |
|
| Receivables Turnover | 1.208 | |
| Receivables Turnover Ratio QoQ | -47.002 % | |
| Receivables Turnover Ratio YoY | -1.14 % | |
| Receivables Turnover Ratio IPRWA | high: 6.071 median: 6.071 mean: 5.176 low: 2.001 SCHL: 1.208 |
|
| Inventory Turnover | 0.524 | |
| Inventory Turnover Ratio QoQ | -28.764 % | |
| Inventory Turnover Ratio YoY | -6.241 % | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 75.529 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 134.4 | |
| Cash Conversion Cycle Days QoQ | -7.158 % | |
| Cash Conversion Cycle Days YoY | 5.845 % | |
| Cash Conversion Cycle Days IPRWA | SCHL: 134.4 high: 20.666 mean: 8.955 median: 7.886 low: -198.24 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.882 | |
| CapEx To Revenue | -0.041 | |
| CapEx To Depreciation | -0.578 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 871.9 M | |
| Net Invested Capital | $ 877.5 M | |
| Invested Capital | $ 877.5 M | |
| Net Tangible Assets | $ 589.9 M | |
| Net Working Capital | $ 114.2 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.168 | |
| Current Ratio | 1.184 | |
| Current Ratio QoQ | -29.093 % | |
| Current Ratio YoY | -3.554 % | |
| Current Ratio IPRWA | high: 3.094 median: 1.407 mean: 1.242 SCHL: 1.184 low: 0.108 |
|
| Quick Ratio | 0.729 | |
| Quick Ratio QoQ | -41.292 % | |
| Quick Ratio YoY | -7.529 % | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -76.919 | |
| Cost Of Debt | 0.893 % | |
| Interest Coverage Ratio | -6.114 | |
| Interest Coverage Ratio QoQ | -129.399 % | |
| Interest Coverage Ratio YoY | 13.983 % | |
| Interest Coverage Ratio IPRWA | high: 4.864 median: 3.498 mean: 3.314 low: 0.061 SCHL: -6.114 |
|
| Operating Cash Flow Ratio | 0.188 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 57.051 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 12.255 | |
| Dividend Payout Ratio | 0.082 | |
| Dividend Rate | $ 0.20 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -10.71 % | |
| Revenue Growth | -40.283 % | |
| Revenue Growth QoQ | -127.92 % | |
| Revenue Growth YoY | 4.865 % | |
| Revenue Growth IPRWA | high: 1.651 % median: 1.651 % mean: 0.693 % low: -2.778 % SCHL: -40.283 % |
|
| Earnings Growth | 17.512 % | |
| Earnings Growth QoQ | -108.67 % | |
| Earnings Growth YoY | -117.044 % | |
| Earnings Growth IPRWA | SCHL: 17.512 % high: -5.952 % median: -5.952 % mean: -7.3 % low: -39.726 % |
|
| MARGINS | ||
| Gross Margin | 54.33 % | |
| Gross Margin QoQ | -8.015 % | |
| Gross Margin YoY | 0.787 % | |
| Gross Margin IPRWA | high: 93.203 % mean: 54.967 % SCHL: 54.33 % low: 51.932 % median: 51.932 % |
|
| EBIT Margin | -8.174 % | |
| EBIT Margin QoQ | -149.232 % | |
| EBIT Margin YoY | 16.174 % | |
| EBIT Margin IPRWA | high: 22.681 % mean: 14.381 % median: 12.166 % low: 9.971 % SCHL: -8.174 % |
|
| Return On Sales (ROS) | -8.174 % | |
| Return On Sales QoQ | -149.232 % | |
| Return On Sales YoY | 16.174 % | |
| Return On Sales IPRWA | high: 32.303 % median: 32.303 % mean: 27.996 % low: 9.971 % SCHL: -8.174 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -43.90 M | |
| Free Cash Flow Yield | -5.245 % | |
| Free Cash Flow Yield QoQ | -158.919 % | |
| Free Cash Flow Yield YoY | -19.641 % | |
| Free Cash Flow Yield IPRWA | high: 9.445 % mean: 1.984 % median: 1.277 % low: -4.698 % SCHL: -5.245 % |
|
| Free Cash Growth | -169.462 % | |
| Free Cash Growth QoQ | 0.365 % | |
| Free Cash Growth YoY | 5.238 % | |
| Free Cash Growth IPRWA | high: 222.066 % median: 172.075 % mean: 131.348 % SCHL: -169.462 % low: -1006.237 % |
|
| Free Cash To Net Income | -0.702 | |
| Cash Flow Margin | 35.552 % | |
| Cash Flow To Earnings | 1.872 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 3.311 % | |
| Return On Assets QoQ | 16.955 % | |
| Return On Assets YoY | -1939.444 % | |
| Return On Assets IPRWA | high: 9.06 % median: 9.06 % mean: 6.919 % SCHL: 3.311 % low: -27.882 % |
|
| Return On Capital Employed (ROCE) | -2.32 % | |
| Return On Equity (ROE) | 0.072 | |
| Return On Equity QoQ | 19.407 % | |
| Return On Equity YoY | -1976.44 % | |
| Return On Equity IPRWA | high: 0.17 median: 0.17 mean: 0.135 SCHL: 0.072 low: -0.326 |
|
| DuPont ROE | 6.933 % | |
| Return On Invested Capital (ROIC) | -2.087 % | |
| Return On Invested Capital QoQ | -137.556 % | |
| Return On Invested Capital YoY | -113.103 % | |
| Return On Invested Capital IPRWA | high: 2.716 % mean: 1.669 % median: 1.552 % low: -0.196 % SCHL: -2.087 % |
|