Scholastic Corp.Find Ratings Reports
SCHOLASTIC CORP's gross profit margin for the first quarter of its fiscal year 2019 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. SCHOLASTIC CORP has weak liquidity. Currently, the Quick Ratio is 0.68 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.15% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY19||Q1 FY18|
|Net Sales ($mil)||232.6||218.4|
|Net Income ($mil)||-58.5||-61.3|
|Balance Sheet||Q1 FY19||Q1 FY18|
|Cash & Equiv. ($mil)||199.4||269.8|
|Total Assets ($mil)||1944.6||1899.6|
|Total Debt ($mil)||109.3||15.7|
|Profitability||Q1 FY19||Q1 FY18|
|Gross Profit Margin||41.06||42.63|
|Return on Assets||0.94||-0.13|
|Return on Equity||1.53||-0.21|
|Debt||Q1 FY19||Q1 FY18|
|Share Data||Q1 FY19||Q1 FY18|
|Shares outstanding (mil)||34.71||35.09|
|Div / share||0.15||0.15|
|Book value / share||34.44||34.47|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||172340.0||165478.0|
HOLD. SCHOLASTIC CORP's P/E ratio indicates a discount compared to an average of 85.19 for the Publishing Industries (except Internet) subsector and a significant premium compared to the S&P 500 average of 22.89. For additional comparison, its price-to-book ratio of 1.07 indicates a significant discount versus the S&P 500 average of 3.42 and a significant discount versus the subsector average of 2.59. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, SCHOLASTIC CORP proves to trade at a discount to investment alternatives.
|SCHL 82.22||Peers 63.42||SCHL 12.16||Peers 16.18|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
SCHL is trading at a significant premium to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SCHL is trading at a discount to its peers.
|SCHL 28.24||Peers 27.72||SCHL 0.52||Peers 1.46|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
SCHL is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
SCHL trades at a significant discount to its peers.
|SCHL 1.07||Peers 2.59||SCHL 446.15||Peers 31.91|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SCHL is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
SCHL is expected to have an earnings growth rate that significantly exceeds its peers.
|SCHL 0.77||Peers 87.63||SCHL 0.63||Peers 12.59|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SCHL is trading at a significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
SCHL significantly trails its peers on the basis of sales growth.