Educational Development Corporation Common Stock (EDUC)

FairStock Score: 72/100 — STEADY

Key Financials

Strengths

• Generates $25 million in annual free cash flow (210.7% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.15, providing financial flexibility
• FairStock composite score of 72/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Revenue declining at 36.6% year-over-year signals potential demand weakness or market share loss

AI Analysis

Educational Development Corporation Common Stock is a micro-cap communication services company valued at $12 million. Revenue stands at $25 million. From a quality standpoint, Educational shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.0 in the grey zone. On valuation, the stock is deeply undervalued on a P/E basis at 3.0x, with offers a 82% margin of safety vs Graham Number of $8. Growth dynamics show revenue growing at -36.6% and profit growth of 1033.6%. Our composite FairStock Score of 72/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $25 million in annual free cash flow (210.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer