Scholastic Corporation Common Stock (SCHL)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

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

Scholastic is a familiar brand with real distribution into schools, but familiarity is not a moat if returns are poor. In fiscal 2026, the year ended 2026-05-31, it earned $56.7M on $1.6B of revenue and $2.34 diluted EPS. That followed a net loss of $1.9M in fiscal 2025, the year ended 2025-05-31, and only $12.1M of net income in fiscal 2024, the year ended 2024-05-31. The latest filed quarter, fiscal Q1 2027, the quarter ended 2026-08-31, showed a $71.2M loss on $216.8M of revenue, though Q1 is seasonally weak. The balance sheet carries D/E of 0.56, but returns are thin: FairStock calculations show ROE 6.68% and ROCE 1.38%. Free cash flow is only $2.5M trailing, a 0.3% FCF yield. At the close on 2026-10-13, price was $39.26, P/E 16.78, P/B 0.98, and EV/EBITDA 5.44. FairStock's Graham Number is $45.98, a 14.62% margin of safety, and Piotroski is 7/9, but Altman Z-Score 1.77 hints at fragility. The Lynch category is TURNAROUND, because it returned to profit after a loss within three years. I want a durable business with consistent cash generation, not one whose profits swing from a $1.9M loss to $56.7M and then to a large quarterly loss. The price is not demanding, but the quality is not there yet. I would need evidence that school book fairs and clubs can grow profitably and convert earnings to cash before calling this a compelling value.

In plain English: Scholastic publishes and distributes children's books and runs school-based book clubs and book fairs. The business looks weak and uneven: it lost money in fiscal 2025, earned a profit in fiscal 2026, and posted a large loss in the latest filed quarter. At $39.26, the price looks roughly fair to a little cheap compared with its earnings and book value, but cash generation is very thin.

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

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

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