Scholastic Corporation (SCHL)

Scholastic Corporation (SCHL) Media & Communications Profile

Scholastic Corporation, a leading publisher and distributor of children's books and educational materials, operates globally through its three segments, focusing on original publications, licensed properties, and educational resources, while navigating the evolving landscape of children's media and educational markets.

What Is the Investment Thesis for SCHL?

Scholastic Corporation presents a compelling investment case based on its established brand, diverse revenue streams, and growth opportunities in the children's book publishing and educational materials market. With a P/E ratio of 17.4 and a dividend yield of 2.00%, the company offers a blend of value and income. Key growth catalysts include the continued popularity of its original publications and licensed properties, expansion in digital educational resources, and strategic partnerships to enhance its market reach. However, potential risks include competition from other publishers and digital media providers, fluctuations in school budgets, and the impact of changing consumer preferences on reading habits. Investors should monitor Scholastic's ability to adapt to these challenges and capitalize on its growth opportunities to drive long-term value.

Based on FMP financials and quantitative analysis

SCHL Key Highlights

• Market capitalization of $1.17B, reflecting its established position in the publishing industry.
• P/E ratio of 17.4, suggesting a reasonable valuation compared to its earnings.
• Gross margin of 52.3%, indicating strong profitability in its core business operations.
• Dividend yield of 2.00%, providing a steady income stream for investors.
• Beta of 1.08, indicating that the stock's volatility is similar to the overall market.

Who Are SCHL's Competitors?

SCHL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SCHL's Key Strengths?

• Strong brand recognition and reputation
• Diverse portfolio of original and licensed properties
• Established distribution channels through school book clubs and fairs
• Extensive relationships with schools and educators

What Are SCHL's Weaknesses?

• Dependence on the children's book market
• Competition from other publishers and digital media providers
• Fluctuations in school budgets
• Impact of changing consumer preferences on reading habits

What Could Drive SCHL Stock Higher?

• Release of new titles in popular series like Dog Man and Wings of Fire, expected to drive sales growth.
• Expansion of digital educational resources and online subscription services, catering to the growing demand for digital learning.
• Strategic partnerships and licensing agreements with established brands and content creators, enhancing the company's portfolio.
• Back-to-school season, typically a peak period for sales of books and educational materials.

What Are the Key Risks for SCHL?

• Decline in reading habits among children, impacting demand for books and educational materials.
• Competition from other publishers and digital media providers, requiring Scholastic to differentiate its offerings.
• Fluctuations in school budgets, affecting sales of educational programs and materials.
• Piracy and copyright infringement, posing a threat to the company's intellectual property.

What Are the Growth Opportunities for SCHL?

• Expansion in Digital Educational Resources: Scholastic can capitalize on the growing demand for digital educational resources by expanding its online subscription services and interactive learning platforms. The market for digital education is projected to reach $325 billion by 2025, offering significant growth potential. By investing in innovative digital content and delivery methods, Scholastic can attract new customers and increase its market share.
• Strategic Partnerships and Licensing Agreements: Scholastic can leverage strategic partnerships and licensing agreements to expand its portfolio of popular children's books and educational materials. Collaborating with established brands and content creators can drive sales and enhance its brand recognition. The licensing market is estimated to be worth over $300 billion annually, providing opportunities for Scholastic to generate additional revenue streams.
• Growth in International Markets: Scholastic has the opportunity to expand its presence in international markets by adapting its publishing programs and distribution channels to local needs and preferences. Emerging markets in Asia and Latin America offer significant growth potential for children's books and educational materials. By investing in localization and cultural adaptation, Scholastic can tap into new customer segments and increase its global market share.
• Development of New Original Content: Scholastic can drive growth by developing new original content that resonates with children and educators. Investing in talented authors and illustrators, and creating innovative formats and genres, can attract new readers and generate buzz. The success of series like Dog Man and Wings of Fire demonstrates the potential for original content to become a major revenue driver.
• Enhancing School Book Clubs and Fairs: Scholastic can enhance its school book clubs and fairs by offering a wider selection of books and educational materials, improving the customer experience, and leveraging technology to streamline operations. School book clubs and fairs remain a key distribution channel for Scholastic, providing direct access to students and educators. By investing in these channels, Scholastic can strengthen its relationships with schools and drive sales.

What Opportunities Does SCHL Have?

• Expansion in digital educational resources
• Strategic partnerships and licensing agreements
• Growth in international markets
• Development of new original content

What Threats Does SCHL Face?

• Decline in reading habits among children
• Piracy and copyright infringement
• Economic downturns affecting school budgets
• Technological disruptions in the publishing industry

What Are SCHL's Competitive Advantages?

• Strong brand recognition and reputation in the children's book publishing industry.
• Diverse portfolio of original and licensed properties, including popular series like Harry Potter and Dog Man.
• Established distribution channels, particularly its school book clubs and fairs.
• Extensive relationships with schools and educators.
• Global presence and reach through its international segment.

What Does SCHL Do?

Founded in 1920, Scholastic Corporation has evolved into a global leader in children's book publishing and distribution. The company operates through three segments: Children's Book Publishing and Distribution, Education Solutions, and International. The Children's Book Publishing and Distribution segment is known for its original publications, including popular series like Harry Potter, Hunger Games, Dog Man, and Goosebumps, as well as licensed properties such as Peppa Pig and Pokemon. This segment distributes books, e-books, media, and interactive products through school book clubs and fairs, as well as trade channels. The Education Solutions segment focuses on providing classroom magazines, supplemental materials, and programs for schools, including Scholastic News and Storyworks. This segment also offers print and online reference materials and consulting services. The International segment extends Scholastic's reach globally, offering trade and educational publishing programs, distributing children's books and digital resources through school-based channels and trade channels, and producing magazines and online subscription services. Scholastic distributes its products and services directly to schools and libraries, as well as through retail stores and the Internet, maintaining a strong presence in both the educational and consumer markets.

What Products and Services Does SCHL Offer?

• Publishes and distributes children's books worldwide.
• Operates through three segments: Children's Book Publishing and Distribution, Education Solutions, and International.
• Publishes original children's books, e-books, media, and interactive products.
• Distributes books through school book clubs and fairs, as well as trade channels.
• Publishes classroom magazines and supplemental materials for schools.
• Offers print and online reference materials and consulting services.
• Provides digital educational resources and online subscription services.

How Does SCHL Make Money?

• Generates revenue through the sale of children's books, e-books, and related products.
• Earns revenue from school book clubs and fairs, providing a direct distribution channel to students.
• Derives revenue from the sale of classroom magazines, supplemental materials, and educational programs to schools.
• Generates revenue from international sales through trade and educational publishing programs.

What Industry Does SCHL Operate In?

Scholastic Corporation operates in the publishing industry, which is undergoing a transformation driven by digital media and changing consumer preferences. The children's book market remains resilient, with demand for both print and digital formats. The industry is competitive, with major players like Penguin Random House and HarperCollins, as well as smaller independent publishers. Scholastic differentiates itself through its strong brand recognition, diverse portfolio of original and licensed properties, and established distribution channels, particularly its school book clubs and fairs. The company's focus on educational materials also positions it to benefit from investments in education and literacy programs.

Who Are SCHL's Key Customers?

• Children and young adults who read Scholastic's books.
• Schools and educators who use Scholastic's educational materials.
• Parents who purchase books and educational products for their children.
• Libraries that stock Scholastic's books and resources.

Net sellingInsider Activity

Over the past six months, Scholastic Corporation insiders filed 7 SEC Form 4 transactions — 5 sales and 2 purchases. On net that is roughly 12K shares disposed (about $490K), a signal worth weighing alongside the fundamentals.

FY2026 estForward Outlook

Wall Street analysts project Scholastic Corporation revenue of about $1.62B for fiscal 2026, with EPS near $1.81.

F-Score 7/9Financial Health

Scholastic Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.82 places it in the grey zone, a middle ground that warrants monitoring.

ROE 7%Key Financial Metrics

Return on equity for Scholastic Corporation stands at 6.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.5%, showing how much profit it generates from its asset base. SCHL trades at a trailing price-to-earnings ratio of 17.35, roughly in line with the Communication Services sector average of ~18x. Its free cash flow yield is 1.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.3%, the inverse of the P/E and a quick read on earnings relative to price.

Scholastic Corporation (SCHL) Valuation Context

Valued at $1.17B, SCHL is classified as a small-cap stock. Relative to its peer group, SCHL's quantitative score of 81/100 is above the peer average of 57/100.

Company Profile

Scholastic Corporation operates in the Publishing industry within the Communication Services sector. It is headquartered in New York City, US. The company is led by CEO Peter Warwick. SCHL has traded publicly since 1992.

SCHL Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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