Scholastic Corporation (SCHL)
NASDAQConsumer DiscretionaryPublishingSnapshot 2026-09-04
$35.66-6.94%
Close 2026-09-04 · 1-day change
NASDAQConsumer DiscretionaryPublishingSnapshot 2026-09-04
QuarterlyIQ Insights · SCHL
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on sustained revenue growth, margin improvement, and profitable execution across segments including Book Fairs, Entertainment, and Education transformation.
Stated as a priority in 3 of last 3 quarters. Fiscal 2026 revenue decreased 3% to $1,581.9 million, but adjusted EBITDA increased 4% to $151.5 million, reflecting margin expansion. The company expects 2% to 4% revenue growth in fiscal 2027, indicating delivering progress on growth and margin expansion.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated neutral grew net income 45% of the time over the next year (vs 59% for the rest of the cohort, n=6943).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“CEO: 'Fiscal 2026 demonstrated the earnings power of a more focused Scholastic... positioning the Company for growth in fiscal 2027.'”
“CEO: 'Advancing our strategy to drive long-term growth and margin expansion... positioning the company for growth in fiscal 2027.'”
“CEO: 'We remain focused on maximizing shareholder value, disciplined execution and accelerating profitability.'”
Continue disciplined capital return via share repurchases including a $300 million authorization and a $200 million modified Dutch auction tender offer.
Stated as a priority in 2 of last 3 quarters. The company returned approximately $288.6 million to shareholders in fiscal 2026 through repurchases and dividends. The Board authorized a $300 million repurchase program including a $200 million tender offer, showing delivering progress on capital return.
“Returned over $285 million to shareholders during fiscal year including repurchases and dividends.”
“Board authorized $300 million share repurchase program including $200 million modified Dutch auction tender offer.”
Reposition Education segment with focused strategy, improved execution, and cost structure to drive growth as market conditions improve.
Stated as a priority in 3 of last 3 quarters. Education revenues declined 13% in Q4 2026 to $109.2 million and operating income decreased to $27.0 million from $30.7 million prior year, but management reports improving trends and cost structure. The trajectory shows limited progress with improving execution but ongoing revenue pressure.
“Education made progress repositioning with improved execution and lower cost structure; trends improving throughout the year.”
“Education performance trends improved sequentially and year-over-year declines moderated despite funding volatility.”
“Education executing transformation with focused product, marketing and sales strategies and improved cost structure.”
Maintain financial flexibility through disciplined leverage targets and capital structure optimization including sale-leaseback transactions.
Stated as a priority in 2 of last 3 quarters. The company improved net cash position from net debt of $136.6 million at 2025 year-end to net cash of $48.9 million at 2026 year-end, driven by sale-leaseback proceeds. Management established a long-term net leverage target of 2.0 to 2.5 times Adjusted EBITDA, showing delivering progress on balance sheet discipline.
“Completed financial transformation with sale-leaseback transactions and established long-term leverage framework.”
“Established long-term net leverage target of 2.0 to 2.5 times Adjusted EBITDA consistent with disciplined balance sheet management.”
Establish a long-term net leverage target of 2.0-2.5x Adjusted EBITDA.
Over the trailing year it converted 0.32x of net income into operating cash flow.
Not enough signal yet.
Not enough signal to read sensitivity to the broad stock market, the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
13 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 53% for the rest of the cohort, n=2538).
Not investment advice. As of 2026-09-04.