Educational Development Corporation Common Stock (EDUC)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I'm wary of businesses that shrink, but I'm also drawn to prices that already reflect disappointment. Educational Development distributes children's books and educational products, and at the $1.31 close on 2026-10-13, the market values the whole company at just $11.2 million. FairStock's calculations show a P/E of 5.46, P/B of 0.27, EV/EBITDA of 2.11, and a Graham Number of $5.12, leaving a 74.41% margin of safety. It also earns a Piotroski F-Score of 6/9 and positive trailing free cash flow of $741,700, a 6.6% FCF yield. Leverage is modest, with D/E of 0.16. But the operating record is troubling. Revenue fell from $51.0 million in FY2023, the year ended 2024-02-29, to $34.2 million in FY2024, the year ended 2025-02-28, and then to $22.9 million in FY2025, the year ended 2026-02-28. FY2025 net income was $2.3 million, but that profit included a fiscal Q3 2025 quarter ended 2025-11-30 with $7.8 million of net income. More recently, the filed fiscal Q2 2026 quarter ended 2026-08-31 showed revenue of $4.1 million and a net loss of $1.6 million; the filed fiscal Q1 2026 quarter ended 2026-05-31 had revenue of $4.8 million and a net loss of $1.4 million. FairStock's ROCE is -6.67%, ROE is 4.96%, and Altman Z-Score is 1.91. FairStock calls this a TURNAROUND, but I need evidence the shrinkage is ending. The asset value may be real, yet a cheap price on a weakening business can stay cheap for years.

In plain English: Educational Development sells children's books, toys, and educational products. The business looks weak right now: sales have fallen a lot and the last two reported quarters showed losses. The stock looks cheap compared with what its assets are worth on paper and past profits, but the shrinking business makes that cheapness uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-08-31) · fiscal Q1 2026 10-Q (period ended 2026-05-31) · fiscal Q4 2025 10-K (period ended 2026-02-28) · fiscal Q3 2025 10-K (period ended 2025-11-30) · FY2025 10-K (period ended 2026-02-28) · FY2024 10-K (period ended 2025-02-28) · FY2023 10-K (period ended 2024-02-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer