Recent News
On March 23, 2026 Scholastic announced a modified Dutch-auction tender offer to purchase up to $200 million of common stock at a price not less than $36.00 and not more than $40.00 per share. On April 23, 2026 the company released the final results of that modified Dutch-auction tender offer, disclosing the tender outcome and settled purchase volume and pricing details.
Technical Analysis
ADX stands at 46.37, indicating a very strong directional trend in play; ADX measures trend strength rather than direction.
DI+ shows 31.10 and a decreasing trend, while DI- reads 10.83 and shows an increasing trend; those DI movements communicate a bearish directional tilt as sellers gain relative strength.
MACD equals 0.59 with the MACD trend decreasing and the MACD signal at 0.79; MACD sits below its signal line and is declining, which signals bearish momentum in the shorter term.
MRO registers 25.48 and is decreasing; the positive MRO indicates price sits above the model target and carries scope to decline toward that target as momentum eases.
RSI at 59.32 and falling signals weakening upside momentum from neutral territory rather than an overbought extreme.
Price closed at $39.99, marginally below the 20-day average of $40.01 and above the 50-day average of $37.84 and the 200-day average of $31.08; the 12-day EMA shows a peak-and-reversal pattern, which aligns with recent momentum loss. Price sits inside the Bollinger bands (lower ~$38.93, upper ~$41.09) and above the super-trend support at $38.03, implying defined near-term support but limited upside until momentum indicators recover.
Fundamental Analysis
Revenue totaled $329.1M with YoY revenue growth of +4.87% and a QoQ change of -127.92%. Gross profit measured $178.8M and gross margin stood at 54.33%, essentially flat YoY (+0.79 percentage points). Operating results show operating income (EBIT) of -$26.9M and an operating margin of -8.17%; operating margin improved YoY by +16.17% but declined QoQ by -149.23%.
Earnings per share came in at -$0.15 versus an estimate of -$0.36, an absolute beat of $0.21 and an EPS surprise of +58.33%. Forward EPS sits at $0.6675, implying a forward P/E near 45.99, while the reported trailing P/E equals 12.90. Book value per share equals $34.27 and the price-to-book ratio reads 0.96, with price-to-sales at 2.54.
Cash and short-term investments total $104.6M with operating cash flow of -$30.5M and free cash flow of -$43.9M, producing a free cash flow yield of -5.25%. The cash conversion cycle measures 134.4 days, well above the industry peer mean of approximately 7.37 days, indicating extended working-capital duration relative to peers. Net debt sits at $284.6M and debt-to-equity equals 0.33; interest coverage remains negative.
Several balance-sheet and efficiency metrics diverge from peer benchmarks: asset turnover equals 0.174 (slightly above the stated peer mean of 0.1115), while inventory turnover remains low at 0.52 versus typical peer turnover multiples. Return on equity equals 7.17% versus the industry peer mean near 3.44%, and return on assets equals 3.31% versus a peer mean near 0.80%.
Valuation context: WMDST values the stock as over-valued. Mixed operating losses, negative free cash flow, an extended cash conversion cycle, and a materially negative enterprise multiple complicate comparables-based valuation despite a trailing P/E of 12.9 and a price-to-book below 1. The forward P/E near 46 reflects expected EPS normalization priced into forward estimates; enterprise and free-cash-flow metrics point toward valuation stress absent sustained cash-flow improvement.
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: 24.721 median: 24.721 mean: 24.444 low: -6.232 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: 0.42 median: 0.364 SCHL: 0.16 low: 0.001 |
|
| Debt To Equity | 0.326 | |
| Debt To Equity QoQ | -21.277 % | |
| Debt To Equity YoY | 5198.864 % | |
| Debt To Equity IPRWA | high: 5.909 mean: 2.1 median: 1.072 SCHL: 0.326 low: -0.004 |
|
| 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: 1.731 mean: 1.301 median: 1.19 SCHL: 0.96 low: -0.006 |
|
| Price To Earnings (P/E) | 12.902 | |
| Price To Earnings QoQ | 18.828 % | |
| Price To Earnings YoY | -103.054 % | |
| Price To Earnings IPRWA | high: 128.489 median: 37.17 mean: 34.383 low: 16.766 SCHL: 12.902 |
|
| 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: 3.339 median: 3.339 mean: 3.066 SCHL: 2.543 low: 0.008 |
|
| 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: 0.178 SCHL: 0.174 median: 0.118 mean: 0.112 low: 0.063 |
|
| Receivables Turnover | 1.208 | |
| Receivables Turnover Ratio QoQ | -47.002 % | |
| Receivables Turnover Ratio YoY | -1.14 % | |
| Receivables Turnover Ratio IPRWA | high: 7.651 mean: 2.599 median: 2.251 SCHL: 1.208 low: 1.198 |
|
| Inventory Turnover | 0.524 | |
| Inventory Turnover Ratio QoQ | -28.764 % | |
| Inventory Turnover Ratio YoY | -6.241 % | |
| Inventory Turnover Ratio IPRWA | high: 6.335 median: 6.335 mean: 6.148 low: 5.299 SCHL: 0.524 |
|
| 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: 42.547 median: 7.886 mean: 7.371 low: -17.812 |
|
| 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: 5.858 SCHL: 1.184 median: 0.865 mean: 0.771 low: 0.401 |
|
| Quick Ratio | 0.729 | |
| Quick Ratio QoQ | -41.292 % | |
| Quick Ratio YoY | -7.529 % | |
| Quick Ratio IPRWA | high: 2.823 median: 2.823 mean: 2.416 SCHL: 0.729 low: 0.566 |
|
| 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: 3.62 median: 3.498 mean: 3.278 low: -0.262 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: -0.029 % mean: -2.089 % median: -2.64 % low: -12.563 % 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 % mean: -7.24 % median: -11.315 % low: -41.21 % |
|
| MARGINS | ||
| Gross Margin | 54.33 % | |
| Gross Margin QoQ | -8.015 % | |
| Gross Margin YoY | 0.787 % | |
| Gross Margin IPRWA | high: 73.4 % median: 65.4 % mean: 63.609 % low: 56.777 % SCHL: 54.33 % |
|
| EBIT Margin | -8.174 % | |
| EBIT Margin QoQ | -149.232 % | |
| EBIT Margin YoY | 16.174 % | |
| EBIT Margin IPRWA | high: 31.042 % mean: 14.474 % median: 12.166 % low: -2.058 % 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: 25.326 % mean: 15.433 % median: 13.145 % SCHL: -8.174 % low: -16.296 % |
|
| 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: 8.652 % mean: 3.956 % median: 3.714 % SCHL: -5.245 % low: -1855.379 % |
|
| Free Cash Growth | -169.462 % | |
| Free Cash Growth QoQ | 0.365 % | |
| Free Cash Growth YoY | 5.238 % | |
| Free Cash Growth IPRWA | high: 222.066 % mean: 38.504 % median: -10.691 % low: -27.552 % SCHL: -169.462 % |
|
| 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 | SCHL: 3.311 % high: 0.816 % median: 0.816 % mean: 0.802 % low: -1.828 % |
|
| 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: 0.081 SCHL: 0.072 mean: 0.034 median: 0.025 low: 0.024 |
|
| 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: 2.031 % mean: 1.654 % median: 1.552 % low: 0.977 % SCHL: -2.087 % |
|