📊 EDUC Key Takeaways
Is EDUC a Good Investment? Thesis Analysis
Educational Development Corp demonstrates strong profitability with a 29.0% net margin and zero debt, indicating solid operational efficiency and financial stability. However, flat revenue growth and modest cash generation relative to asset base raise concerns about growth prospects and capital deployment effectiveness.
Why Buy EDUC? Key Strengths
- Exceptional net margin of 29.0% with 39.7% operating margin indicating strong pricing power and cost control
- Fortress balance sheet with zero long-term debt and 3.4x current ratio providing financial flexibility
- Positive free cash flow of 3.6M with 19.0% FCF margin demonstrating genuine cash generation capability
- Low leverage with debt-to-equity of 0.0x reducing financial risk and insolvency probability
EDUC Investment Risks to Consider
- Flat year-over-year revenue growth signals stagnation in core business with limited organic expansion
- Low absolute cash position of 3.1M relative to 59.5M in assets suggests potential liquidity constraints for growth investments
- Quick ratio of 0.64x indicates potential working capital management challenges despite strong current ratio
- Operating cash flow of 4.0M is modest relative to net income of 5.4M, raising questions about earnings quality and sustainability
- No insider buying activity in past 90 days may indicate limited management confidence in near-term prospects
Key Metrics to Watch
- Revenue growth rate and organic growth trajectory
- Free cash flow consistency and capital allocation decisions
- Working capital management and inventory levels relative to sales
- Operating margin sustainability and cost structure changes
EDUC Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.40x current ratio provides a solid financial cushion.
EDUC Profitability Ratios
EDUC vs Default Sector
How EDUCATIONAL DEVELOPMENT CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EDUC Overvalued or Undervalued?
Based on fundamental analysis, EDUCATIONAL DEVELOPMENT CORP appears fundamentally strong relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
EDUC Balance Sheet & Liquidity
EDUC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: EDUCATIONAL DEVELOPMENT CORP's revenue has declined by 75% over the 5-year period, indicating business contraction. The most recent EPS of $-0.11 indicates the company is currently unprofitable.
EDUC Growth Metrics (YoY)
EDUC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $7.0M | -$835.7K | $-0.10 |
| Q2 2026 | $4.6M | -$1.1M | $-0.15 |
| Q1 2026 | $7.1M | -$1.1M | $-0.13 |
| Q3 2025 | $11.1M | -$835.7K | $-0.10 |
| Q2 2025 | $6.5M | $188.9K | $0.02 |
| Q1 2025 | $10.0M | -$872.8K | $-0.11 |
| Q3 2024 | $16.9M | $900 | $0.00 |
| Q2 2024 | $10.6M | $188.9K | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
EDUC Capital Allocation
EDUC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for EDUCATIONAL DEVELOPMENT CORP (CIK: 0000031667)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EDUC
What is the AI rating for EDUC?
EDUCATIONAL DEVELOPMENT CORP (EDUC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are EDUC's key strengths?
Claude: Exceptional net margin of 29.0% with 39.7% operating margin indicating strong pricing power and cost control. Fortress balance sheet with zero long-term debt and 3.4x current ratio providing financial flexibility.
What are the risks of investing in EDUC?
Claude: Flat year-over-year revenue growth signals stagnation in core business with limited organic expansion. Low absolute cash position of 3.1M relative to 59.5M in assets suggests potential liquidity constraints for growth investments.
What is EDUC's revenue and growth?
EDUCATIONAL DEVELOPMENT CORP reported revenue of $18.7M.
Does EDUC pay dividends?
EDUCATIONAL DEVELOPMENT CORP does not currently pay dividends.
Where can I find EDUC SEC filings?
Official SEC filings for EDUCATIONAL DEVELOPMENT CORP (CIK: 0000031667) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EDUC's EPS?
EDUCATIONAL DEVELOPMENT CORP has a diluted EPS of $0.63.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EDUC a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, EDUCATIONAL DEVELOPMENT CORP has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is EDUC stock overvalued or undervalued?
Valuation metrics for EDUC: ROE of 11.8% (sector avg: 15%), net margin of 29.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy EDUC stock in 2026?
Our dual AI analysis gives EDUCATIONAL DEVELOPMENT CORP a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is EDUC's free cash flow?
EDUCATIONAL DEVELOPMENT CORP's operating cash flow is $4.0M, with capital expenditures of $447.1K. FCF margin is 19.0%.
How does EDUC compare to other Default stocks?
Vs Default sector averages: Net margin 29.0% (avg: 12%), ROE 11.8% (avg: 15%), current ratio 3.40 (avg: 1.8).