📊 SCHL Key Takeaways
Is Scholastic Corp. (SCHL) a Good Investment?
Scholastic's core business is fundamentally broken, with negative operating cash flow (-39.1M) and catastrophic free cash flow burn (-87.5M) indicating the 1.1B revenue business cannot self-sustain. The 117.5% decline in diluted EPS and widening operational losses mask a publishing sector decline, while deteriorating liquidity (0.73x quick ratio) and ~1.5 years cash runway create imminent financial distress risk.
Scholastic Corp. Key Strengths (SCHL)
- Zero long-term debt eliminates leverage-related solvency risk
- Established market position in educational publishing with 1.1B revenue scale
- Positive net income (47.3M) and substantial equity base (871.9M) provide near-term cushion
SCHL Stock Risks: Scholastic Corp. Investment Risks
- Negative operating cash flow (-39.1M) proves core business cannot generate cash despite revenue scale
- Unsustainable free cash flow burn (-87.5M annually) with only 104.6M cash = <1.5 year runway
- Severe earnings collapse (EPS -117.5% YoY) indicates structural market headwinds in publishing
- Critically weak quick ratio (0.73x) leaves zero margin for adverse conditions
- Persistent operating margin of -3.3% despite operational restructuring attempts signals uncompetitive unit economics
Key Metrics to Watch
- Operating cash flow trajectory (must achieve positive or insolvency looms)
- Cash balance depletion rate relative to monthly cash burn
- Revenue stability and segment-level profitability
- Quick ratio and working capital adequacy
Scholastic Corp. (SCHL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Scholastic Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
SCHL Profit Margin, ROE & Profitability Analysis
SCHL vs Services Sector: How Scholastic Corp. Compares
How Scholastic Corp. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Scholastic Corp. Stock Overvalued? SCHL Valuation Analysis 2026
Based on fundamental analysis, Scholastic Corp. has mixed fundamental signals relative to the Services 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.
Scholastic Corp. Balance Sheet: SCHL Debt, Cash & Liquidity
SCHL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Scholastic Corp.'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $2.49 reflects profitable operations.
SCHL Revenue Growth, EPS Growth & YoY Performance
SCHL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $329.1M | -$3.6M | $-0.13 |
| Q2 2026 | $544.6M | -$13.7M | $-0.48 |
| Q1 2026 | $225.6M | -$62.5M | $-2.21 |
| Q3 2025 | $323.7M | -$17.3M | $-0.13 |
| Q2 2025 | $544.6M | $2.7M | $0.09 |
| Q1 2025 | $228.5M | -$62.5M | $-2.21 |
| Q3 2024 | $323.7M | $10.6M | $0.30 |
| Q2 2024 | $562.6M | $2.7M | $0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Scholastic Corp. Dividends, Buybacks & Capital Allocation
SCHL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Scholastic Corp. (CIK: 0000866729)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SCHL
What is the AI rating for SCHL?
Scholastic Corp. (SCHL) has an AI grade of D with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SCHL's key strengths?
Claude: Zero long-term debt eliminates leverage-related solvency risk. Established market position in educational publishing with 1.1B revenue scale.
What are the risks of investing in SCHL?
Claude: Negative operating cash flow (-39.1M) proves core business cannot generate cash despite revenue scale. Unsustainable free cash flow burn (-87.5M annually) with only 104.6M cash = <1.5 year runway.
What is SCHL's revenue and growth?
Scholastic Corp. reported revenue of $1.1B.
Does SCHL pay dividends?
Scholastic Corp. pays dividends, with $15.4M distributed to shareholders in the trailing twelve months.
Where can I find SCHL SEC filings?
Official SEC filings for Scholastic Corp. (CIK: 0000866729) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SCHL's EPS?
Scholastic Corp. has a diluted EPS of $1.87.
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 grade reflects both perspectives for balanced insights.
What is SCHL's fundamental grade?
Based on our AI fundamental analysis in May 2026, Scholastic Corp. has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SCHL stock overvalued or undervalued?
Valuation metrics for SCHL: ROE of 5.4% (sector avg: 16%), net margin of 4.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is SCHL's AI grade for 2026?
Our dual AI analysis gives Scholastic Corp. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SCHL's free cash flow?
Scholastic Corp.'s operating cash flow is $-39.1M, with capital expenditures of $48.4M. FCF margin is -7.9%.
How does SCHL compare to other Services stocks?
Vs Services sector averages: Net margin 4.3% (avg: 10%), ROE 5.4% (avg: 16%), current ratio 1.18 (avg: 1.5).