SCHL · sample dossier
Scholastic Corp
53/100
OutdatedGenerated Sep 19, 2026 · 10:00 AM UTC · 48 days ago
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EquityScholastic Corp · XNAS
Decision context
Recommendation
Balanced between solid Value (87/100) and constrained Growth (4/100).
A mixed picture — no strong reason to buy or sell right now.
AlphaDog Fair Value
Executive thesis & key metrics
Executive Investment Thesis
Scholastic Corp is a children's book publisher and distributor with a market capitalization of $648.96M, trading at a Price/Book of 0.87 and generating free cash flow per share of $0.12 (four-quarter statements). The neutral positioning reflects contraction with revenue growth declining -6.3% YoY and EPS growth contracting -23.7% YoY, balanced against a Debt/Equity ratio of 0.56 and a P/E multiple of 14.85. The primary operational risk is margin compression, evidenced by a thin net margin of 3.6% alongside a 3-month share price decline of -18.9%.
Key Metrics to Watch
What changed recently
No material changes found in the last 30 days.
Why this rating
Score 53 · Hold
Data through
OutdatedMay 31, 2026
Value 87/100 — P/E 14.9x screens cheap vs inputs.
Re-evaluate if
- Net margin falls below 2.9% (was 3.6%)
Trim / reconsider if
- ROA falls below 0.9% (was 1.4%)
- Debt/Equity ratio climbs above 0.56.
Think of these dollars as a map of our value estimate for Hold — helpful context, not a reason to override the view.
A Calmer Look · Devil's Advocate
The prevailing consensus treats Scholastic as an unexciting 'Hold' anchored by an apparent valuation floor at 0.87x Price/Book and $3.18 trailing free cash flow per share.
May be overlooked
Consensus ignores that an Altman Z-score of 2.07 combined with a -23.7% EPS contraction leaves the balance sheet vulnerable despite a headline Debt/Equity ratio of 0.56.
The 56.4% gross margin masks massive fixed operating overhead, evidenced by severe operating deleverage that converts high gross profits into an anemic 3.6% net margin.
Neither side models structural digital substitution and constrained school budgets that drove the -6.3% YoY revenue decline in core distribution channels.
Expectations look stretched
Treating trailing free cash flow of $3.18 per share as a repeatable run-rate despite top-line revenue shrinking by -6.3% YoY.
Assuming gross margin resilience at 56.4% represents pricing power, even as EPS declined by -23.7% YoY due to cost absorption issues.
Interpreting the Piotroski F-score of 7/9 as an endorsement of business durability when capital efficiency (ROA 1.4%) reflects severe asset underutilization.
Revenue Growth YoY improves above -6.3%.
Revenue Growth YoY improves above -6.3%.
Monitor These Triggers
3 Checkpoints · Next PrintRevenue Growth YoY (current baseline: -6.3%)
Market context
Snapshot returns at report publication
1 month
-14.6%
3 months
-18.9%
6 months
+1.5%
1 year
+27.7%
At a Glance
A smaller company is in a pullback at modest pricing.
Top Holders
Financial trajectory
Financial Performance
Go deeper
For learning and research only — not investment advice. AlphaDog doesn’t hold stocks and isn’t your financial advisor.
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