Scholastic Story

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SCHL -- USA Stock  

USD 26.60  0.15  0.56%

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). Today's short post will summarize Scholastic as your potential position. We will summarize the question of why stakeholders should continue to be confident in Scholastic outlook.
Published over a month ago
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Are Scholastic (NASDAQ:SCHL) stakeholders starting to hold back?
Scholastic has a beta of 0.1219. 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

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Scholastic's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Scholastic in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Scholastic. Your research has to be compared to or analyzed against Scholastic's peers to derive any actionable benefits. When done correctly, Scholastic's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in 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 2.48 Million

An Additional Perspective On Scholastic

The new hike in Scholastic short term price appreciation created some momentum for stakeholders as it was traded today as low as 26.25 and as high as 27.38 per share. The company directors and management have successfully maneuvered the company at convenient times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.67. The current volatility is consistent with the ongoing market swings in November 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

Is Scholastic showing trail of lower volatility?

Scholastic new market risk adjusted performance upsurges over 2.54. Scholastic currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.29. However, we do advice investors to further question Scholastic expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

While some other entities under the publishing industry are still a bit expensive, Scholastic may offer a potential longer-term growth to stakeholders. To sum up, as of the 16th of December 2020, we see that Scholastic barely shadows the market. The company is fairly valued with below average odds of financial turmoil within the next 24 months. Our actual 30 days buy-sell recommendation on the company is Strong Buy.

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 Achuva Shats do not own shares of Scholastic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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