Recent News
On March 19, 2026 Scholastic reported fiscal third-quarter results for the period ending February 28, 2026; on March 23, 2026 the company launched a modified Dutch-auction tender offer to repurchase up to $200 million of common stock at $36–$40 per share; in May 2026 the company promoted a limited-time Scholastic Dollars sale tied to Book Fair activity.
Technical Analysis
Directional indicators show a strong trend environment (ADX 33.21) but directional momentum skews bearish: DI+ 26.5 is decreasing while DI- 17.4 is increasing, signaling that trend strength currently aligns with seller advantage.
MACD registers a dip & reversal (MACD 0.31, signal 0.44), signaling bullish momentum development, yet the MACD remains below its signal line, so bullish confirmation lacks a decisive crossover.
MRO stands at 23.66 and is decreasing; the positive value indicates price sits above the model target and implies mean-reversion pressure could reduce upside scope over the near term.
RSI sits at 57.53 with a dip & reversal, indicating regained buying momentum without overbought conditions.
Price structure favors higher levels: close $39.96 trades above the 20-day average $39.73, the 50-day average $38.61, and the 200-day average $31.70, while the 12-day EMA shows a dip & reversal. Ichimoku components place the price above the cloud (Senkou A $37.26, Senkou B $35.28) though the Kijun-sen ($40.27) sits slightly above the current price, marking a nearby reference for short-term equilibrium. The SuperTrend lower band at $38.03 and the 1x Bollinger upper near $40.37 define the immediate range boundaries.
Net outlook from technicals: momentum signals recovered but lack full confirmation; trend strength remains elevated while mean-reversion risk (MRO positive) and the declining DI+ introduce a bias toward limited upside and episodic pullbacks into nearby support levels.
Fundamental Analysis
Top-line and profitability: total revenue $329,100,000 with YoY revenue growth 4.87% and QoQ revenue change of -127.92%. Operating income (EBIT) stands at -$26,900,000, producing an operating margin of -8.17%, which improved YoY by 16.17% but weakened QoQ by -149.23%. The operating margin sits below the industry peer mean of 1.999% yet well inside the industry peer range.
Earnings and cash flow: net income $62,500,000 and reported EPS $2.55 exceeded the estimate $2.35 by $0.20, an EPS surprise of 8.51%. Operating cash flow registered -$30,500,000 and free cash flow totaled -$43,900,000, producing a negative free cash flow yield of -5.25%. Cash and short-term investments amount to $104,600,000 while beginning-to-end period cash rose modestly.
Balance sheet and working capital: total assets $1,780,800,000, total equity $871,900,000, and total debt $284,600,000. Debt-to-equity equals 32.64% and debt-to-assets 15.98%. The current ratio reads 1.18, above the industry peer mean of 0.9228, while the cash-conversion cycle at 134.4 days remains extended versus the industry peer mean of 38.08 days, highlighting elongated working-capital timing driven by inventory and receivables.
Margins and returns: gross margin 54.33% (slightly below the industry peer mean of 57.65%), return on equity 7.17%, and return on assets 3.31%. Depreciation and amortization total $23,200,000; interest coverage is negative. Dividend metrics show a modest dividend yield of 0.61% with a payout ratio near 8.16% and coverage above 12x, indicating a modest, well-covered distribution relative to earnings.
Valuation context: trailing P/E near 12.90, price-to-book about 0.96 (below the industry peer mean of 1.5752), and price-to-sales 2.54. Forward P/E sits materially higher at 45.99, reflecting consensus forward earnings compression. WMDST values the stock as over-valued given the combination of stretched forward multiples and negative cash flow dynamics despite positive net income and modest buyback activity.
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 | $ 2.35 | |
| EPS Actual | $ 2.55 | |
| EPS Difference | $ 0.20 | |
| EPS Surprise | 8.511 % | |
| 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: 134.841 mean: 44.347 median: 24.721 low: -36.86 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: 1.73 mean: 0.375 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: 1.525 median: 1.072 SCHL: 0.326 low: -2.995 |
|
| 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: 2.697 median: 1.619 mean: 1.575 SCHL: 0.96 low: -0.336 |
|
| Price To Earnings (P/E) | 12.902 | |
| Price To Earnings QoQ | 18.828 % | |
| Price To Earnings YoY | -103.054 % | |
| Price To Earnings IPRWA | high: 137.735 median: 37.17 mean: 34.536 SCHL: 12.902 low: -45.776 |
|
| 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: 17.816 mean: 5.537 median: 3.339 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: 0.243 SCHL: 0.174 median: 0.118 mean: 0.116 low: 0.063 |
|
| Receivables Turnover | 1.208 | |
| Receivables Turnover Ratio QoQ | -47.002 % | |
| Receivables Turnover Ratio YoY | -1.14 % | |
| Receivables Turnover Ratio IPRWA | high: 3.782 median: 2.251 mean: 2.157 SCHL: 1.208 low: 0.407 |
|
| Inventory Turnover | 0.524 | |
| Inventory Turnover Ratio QoQ | -28.764 % | |
| Inventory Turnover Ratio YoY | -6.241 % | |
| Inventory Turnover Ratio IPRWA | high: 22.334 mean: 8.769 median: 7.506 SCHL: 0.524 low: 0.304 |
|
| 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 | high: 160.345 SCHL: 134.4 mean: 38.075 median: 33.615 low: -61.656 |
|
| 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: 2.099 SCHL: 1.184 mean: 0.923 median: 0.865 low: 0.401 |
|
| Quick Ratio | 0.729 | |
| Quick Ratio QoQ | -41.292 % | |
| Quick Ratio YoY | -7.529 % | |
| Quick Ratio IPRWA | high: 1.59 median: 1.59 mean: 1.587 low: 1.091 SCHL: 0.729 |
|
| 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: 0.698 SCHL: -6.114 low: -8.927 |
|
| 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: 17.106 % median: -2.64 % mean: -4.397 % SCHL: -40.283 % low: -44.154 % |
|
| Earnings Growth | 17.512 % | |
| Earnings Growth QoQ | -108.67 % | |
| Earnings Growth YoY | -117.044 % | |
| Earnings Growth IPRWA | high: 134.615 % SCHL: 17.512 % median: -5.952 % mean: -15.489 % low: -150.0 % |
|
| MARGINS | ||
| Gross Margin | 54.33 % | |
| Gross Margin QoQ | -8.015 % | |
| Gross Margin YoY | 0.787 % | |
| Gross Margin IPRWA | high: 97.934 % mean: 57.646 % median: 56.777 % SCHL: 54.33 % low: 15.882 % |
|
| EBIT Margin | -8.174 % | |
| EBIT Margin QoQ | -149.232 % | |
| EBIT Margin YoY | 16.174 % | |
| EBIT Margin IPRWA | high: 31.042 % median: 12.166 % mean: 1.999 % SCHL: -8.174 % low: -43.459 % |
|
| 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 % median: 13.145 % mean: 12.014 % SCHL: -8.174 % low: -42.683 % |
|
| 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: 18.513 % median: 3.714 % mean: 2.291 % SCHL: -5.245 % low: -18.427 % |
|
| 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: 3.402 % median: -10.691 % SCHL: -169.462 % low: -360.87 % |
|
| 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: 3.003 % median: 0.753 % mean: -0.174 % low: -5.963 % |
|
| 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 median: 0.025 mean: -0.002 low: -0.134 |
|
| 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: 4.237 % mean: 1.773 % median: 1.552 % low: -0.362 % SCHL: -2.087 % |
|