Scholastic Story

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SCHL -- USA Stock  

USD 19.76  0.31  1.54%

Scholastic Invested Capital is relatively stable at the moment as compared to the past year. The company's current value of Invested Capital is estimated at 1.36 Billion. Invested Capital Average is expected to hike to about 1.3 B this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to (30.1 M). The intend of this write-up is to forecast a future value of Scholastic using technical analysis. What exactly are Scholastic stakeholders should expect in October?
Published over a month ago
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Estimating Scholastic (NASDAQ:SCHL) price for October 2020.
Scholastic has a beta of 0.2414. Let's try to break down what Scholastic's beta means in this case. Scholastic returns are very sensitive to returns on the market. As the market goes up or down, Scholastic is expected to follow. The beta indicator helps investors understand whether Scholastic moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Scholastic deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Scholastic. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Scholastic

How important is Scholastic's Liquidity

Scholastic financial leverage refers to using borrowed capital as a funding source to finance Scholastic ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Scholastic financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Scholastic's total debt and its cash.

How Scholastic utilizes its cash?

To perform a cash flow analysis of Scholastic, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Scholastic is receiving and how much cash it distributes out in a given period. The Scholastic cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Scholastic Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 2.16 Million

An Additional Perspective On Scholastic

The big decline in price over the last few months for Scholastic created some momentum for stakeholders as it was traded today as low as 19.75 and as high as 20.51 per share. The company executives failed to add value to investors and positioning the company supply of money to exploit market volatility in August. However, diversifying your holdings with Scholastic or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.22. The current volatility is consistent with the ongoing market swings in August 2020 as well as with Scholastic unsystematic, company-specific events.

Returns Breakdown

Return on Investment(6.79)
Return on Assets(2.3)
Return on Equity(3.67)
Return Capital0.0801
Return on Sales0.0461

Scholastic has 97 percent chance to finish above $19.55 in October

The skewness is down to -0.46 as of today. Scholastic exhibits very low volatility with skewness of -0.46 and kurtosis of 1.9. However, we advise investors to further study Scholastic technical indicators to make sure all market info is available and is reliable.

The Current Takeaway on Scholastic Investment

While other companies in the publishing industry are either recovering or due for a correction, Scholastic may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 24th of September 2020, we believe that Scholastic is currently undervalued with below average probability of distress in the next two years. Our final 30 days buy-hold-sell recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Scholastic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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