Scholastic Corporation (SCHL) - Stock Analysis
Last updated: Sep 20, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Capital‑return‑driven setup: a large Dutch-auction tender ($200M) and $300M total authorization that could retire ~23–25% of shares, combined with >$400M liquidity from real‑estate sales and a recent EPS beat, have driven a ~16% 21‑day rally; price sits within the $36–40 tender band, creating a strong near‑term bid and tradable upside into the tender window and dividend record date.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: • Low valuation • Thin profitability • Elevated leverage SCHL appears undervalued on book value and EBITDA multiples, but thin margins, modest returns, and meaningful leverage warrant caution.
Price Behavior
Key Price Behavior Insights: • Clear downtrend • Oversold momentum • Key breakout Support Level: $34.75–$35.00 Resistance Level: $35.58–$36.30 SCHL is in a clear downtrend over the last month, with oversold momentum suggesting rebound potential but sellers retaining control below $35.00 and a sustained move above $36.30 needed to improve the outlook.
Sentiment & News
Key News Insights: • Results Scheduled • Earnings Decline • Dividend Maintained Scholastic will report Q1 fiscal 2027 results amid expected earnings weakness while maintaining its $0.25 quarterly dividend.
AI Summary
SCHL is a value-supported but conditional turnaround: its tangible book value, low multiples, and cash generation cushion downside, yet investors should wait for sustained revenue stabilization and inventory-to-cash conversion before treating margin gains and capital returns as durable.
Description
Scholastic Corporation is a global publisher and distributor of children’s books and educational materials, operating through three reporting segments: Children’s Book Publishing and Distribution, Education Solutions, and International. The company produces and sells original and licensed trade and novelty titles, e-books and interactive products through school-based book clubs and fairs, retail and online channels, and supplies classroom magazines, supplemental curricula, reference resources and related support services. Founded in 1920, Scholastic is headquartered in New York City and distributes directly to schools, libraries and consumers worldwide.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Apr 9 | Apr 16 | SCHL | Scholastic Corporation | Capital‑return‑driven setup: a large Dutch-auction tender ($200M) and $300M total authorization that could retire ~23–25% of shares, combined with >$400M liquidity from real‑estate sales and a recent EPS beat, have driven a ~16% 21‑day rally; price sits within the $36–40 tender band, creating a strong near‑term bid and tradable upside into the tender window and dividend record date. | Closed | +0.8% |
| Mar 23 | Mar 30 | SCHL | Scholastic Corporation | Scholastic just announced a $200M Dutch-auction tender at $36–40 commencing March 23, 2026 plus a $0.20 quarterly dividend and a Q3 EPS beat boosted by ~$120M of asset-sale gains, driving the stock ~20% higher over 21 days and through its 200‑day high; this concentrated capital-return program is a powerful short-term re‑rating catalyst despite cash‑flow quality risks. | Closed | +1.1% |