SCHL
SCHOLASTIC CORP
Next earnings Jul 16, 2026 · consensus $2.23 EPS, $527M rev
Last earnings +2.5% on 2026-03-19
$46.41
▲ +0.67%$46.41▲ +126.87%
over 1Y
L $20.46H $46.41
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+0.7%
1W+5.6%
1M+8.6%
3M+19.0%
YTD+56.6%
1Y+126.9%
Hold
Conviction
Horizon
Medium (3–12mo)
12-mo target
$•••
Street · 6 analysts
Sell
Cheap legacy children's publisher trading at 0.8x sales, but margins are razor-thin and earnings have collapsed to a small loss.
Price / Sales 0.8x · FY2025
Scholastic is the world's largest publisher and distributor of children's books, with a defensible franchise built on its proprietary school-based Book Clubs and Book Fairs channels (~$2.3M sq ft of warehouse footprint dedicated to Fairs alone). The valuation is genuinely undemanding — a $1.34B market cap on $1.63B in FY2025 revenue (P/S 0.8) for a company that still generated $124M of operating cash flow and returned $92.6M to shareholders via buybacks ($70M) and dividends ($22.6M). That capital return alone is ~7% of the market cap, which puts a floor under the stock.
The problem is that the underlying business is barely profitable and the trend is wrong. Operating margin collapsed to 1.0% and the company swung to a -$1.90M net loss in FY2025 (diluted EPS -$0.07), versus $86M earned in FY2023. The segment disclosure shows why: Education Solutions revenue fell from $386.6M (FY23) → $351.2M (FY24) → $309.8M (FY25), a ~20% two-year decline in what should be the higher-margin recurring-curriculum business. The core Children's Book segment is essentially flat ($963.9M vs $1,019M in FY23), and the headline 2.3% revenue growth is almost entirely from consolidating 9 Story Media (acquired June 2024), which added ~$59M to the Entertainment segment but is a new, unproven integration.
Is SCHL a buy? The one-page verdict, explained →
The options angle
model · matches our verdictCovered call~60d expiry
- Long 100 shares @ ~46.41
- Short call 49 @ ~1.40 est
debit $4,501max +$399max −$4,500BE 45.01
HOLD means own it, don't chase it — harvesting premium against the position matches the verdict.
Educational template, not a trade recommendation. Strikes and premiums are Black-Scholes model estimates from the last close and 30-day realized volatility — real chains, spreads and IV will differ. Options involve substantial risk.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $1.30B | $1.64B | $1.70B | $1.59B | $1.63B |
| Gross profit | — | — | — | — | — |
| Operating income | -$22.7M | $97.4M | $106M | $14.5M | $15.8M |
| Net income | -$11.0M | $80.9M | $86.3M | $12.1M | -$1.90M |
| Diluted EPS | -$0.32 | $2.27 | $2.49 | $0.40 | -$0.07 |
| Net margin | -0.8% | 4.9% | 5.1% | 0.8% | -0.1% |
10-year statements — income, cash flow, balance sheet & CSV export →
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$989M
EV / EBITDA14.1
EV / Sales0.6
EV / FCF33.9
P / FCF29.3
PEG (trailing)—
Earnings yield-0.2%
FCF yield3.4%
Quality & risk
ROIC (est.)1.0%
Free cash flow$29.2M
Total debt$257M
Net cash-$133M
Piotroski F-Score3/8
Capital returns
Buyback yield8.2%
Dividend yield (est.)2.6%
Shareholder yield10.8%
Shares Δ YoY-6.8%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has skewed negative — read the flagged items.
- 10-Q Quarterly report2026-03-20
Q3 FY26 10-Q; thin operating margins continue, debt at $250M
- 8-K Earnings results2026-03-19
Other event disclosure alongside earnings, likely related supplemental info
- 8-K Other event2026-03-19
Other event disclosure alongside earnings, likely related supplemental info
- 8-K Officer / director change2025-12-22
Officer/director change disclosed; governance update post-earnings
- 10-Q Quarterly report2025-12-19
Q2 FY26 10-Q reflects acquisition impact and rising current liabilities
- 8-K Acquisition / disposition2025-12-18
Q2 FY26 earnings release; pressures on margins persist from FY25 weakness
- 8-K Earnings results2025-12-18
Q2 FY26 earnings release; pressures on margins persist from FY25 weakness
- 8-K Material agreement2025-12-05
Signed material agreement + acquisition with new debt facility
- 10-Q Quarterly report2025-09-19
Q1 FY26 10-Q; seasonal loss period, no major surprises
Recent filings
all on EDGAR ↗4Period ending 2026-05-072026-05-11open ↗SCHEDULE 13G/AFiling2026-04-24open ↗SC TO-I/AFiling2026-04-23open ↗SC TO-I/AFiling2026-04-21open ↗SCHEDULE 13G/AFiling2026-04-09open ↗SC TO-I/AFiling2026-03-30open ↗4Period ending 2026-03-252026-03-27open ↗SCHEDULE 13G/AFiling2026-03-27open ↗4Period ending 2026-01-222026-03-25open ↗SC TO-IFiling2026-03-23open ↗10-QPeriod ending 2026-02-282026-03-20open ↗8-KPeriod ending 2026-03-192026-03-19open ↗
Frequently asked
- Is SCHOLASTIC CORP (SCHL) a buy?
- SCHL currently carries a Hold rating with 3/5 conviction, derived from its latest SEC filings. Cheap legacy children's publisher trading at 0.8x sales, but margins are razor-thin and earnings have collapsed to a small loss.
- What is SCHOLASTIC CORP's quality score?
- SCHL scores 58.02031057070464/100 (grade C) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0000866729, latest 10-Q filed 2026-03-20) · EODHD · Proprietary analysis · as of 6/25/2026, 3:01:18 PM.
About this recommendation — produced by TENK/calls (tenkcalls.com), Luxembourg · not investment advice
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 25, 2026, 11:01 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.