MeritValue

EDUCATIONAL DEVELOPMENT CORP

EDUCdata completeness 100%16 fiscal years on file
The thesis, from the filings

EDUCATIONAL DEVELOPMENT CORP earns about 3% on invested capital, below its ~9% cost of capital, with a roughly flat share count — no moat visible in the numbers. The estimate methods put fair value between $0.66 and $6.36 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$142.2M1$87.8M2$51M3$34.2M4$22.9M4
Net income$8.31M5−$2.5M6$546,4007−$5.26M8$2.33M8
Operating cash flow−$21.1M9$58,50010$8.75M11$3.21M12$2.01M12
Capital expenditure$3.72M13$1.58M14$821,80015$439,40016$542,80016
Free cash flow (derived)−$24.9M9−$1.52M10$7.93M11$2.77M12$1.46M12
Total debt$50M17$70M18$57M19$53.5M20$020
Cash & equivalents$361,20021$689,10022$844,50023$428,40024$1.12M24
Diluted shares8.5M8.2M8.3M8.3M8.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$49.97
your share of equity
Profit it earned you last year
$2.72
Free cash flow it threw off
$1.71
Debt you’d be carrying
$0

10 shares is a claim on $49.97 of net worth that earned you $2.72 and generated $1.71 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 5y
FY22 9%FY23 -1%FY24 3%FY25 -4%FY26 8%

It earned about 3% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $0.66 and $6.36 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$6.36
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$2.77M
DCF · Growth Exit 5Y
$5.88
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$2.77M
Earnings Power Value
$0.66
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$546,400
  • growthAssumed0.0%
Graham Number
$5.51
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $5.88
The three cases
Bear0.0%$4.76
Base5.0%$5.88
Bull10.0%$7.22

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-02-28 · accession 0001185185-23-000539 (Revenues)
  2. 10-K · period ending 2023-02-28 · accession 0001185185-24-000577 (Revenues)
  3. 10-K · period ending 2024-02-29 · accession 0001185185-25-000516 (Revenues)
  4. 10-K · period ending 2025-02-28 · accession 0001185185-26-001927 (Revenues)
  5. 10-K · period ending 2022-02-28 · accession 0001185185-23-000539 (NetIncomeLoss)
  6. 10-K · period ending 2023-02-28 · accession 0001185185-24-000577 (NetIncomeLoss)
  7. 10-K · period ending 2024-02-29 · accession 0001185185-25-000516 (NetIncomeLoss)
  8. 10-K · period ending 2025-02-28 · accession 0001185185-26-001927 (NetIncomeLoss)
  9. 10-K · period ending 2022-02-28 · accession 0001185185-23-000539 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-02-28 · accession 0001185185-24-000577 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2024-02-29 · accession 0001185185-25-000516 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2025-02-28 · accession 0001185185-26-001927 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2022-02-28 · accession 0001185185-23-000539 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-02-28 · accession 0001185185-24-000577 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-02-29 · accession 0001185185-25-000516 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2025-02-28 · accession 0001185185-26-001927 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2022-02-28 · accession 0001185185-23-000539 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2023-02-28 · accession 0001185185-24-000577 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2024-02-29 · accession 0001185185-25-000516 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2025-02-28 · accession 0001185185-26-001927 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2022-02-28 · accession 0001185185-23-000539 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-02-28 · accession 0001185185-24-000577 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2024-02-29 · accession 0001185185-25-000516 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2025-02-28 · accession 0001185185-26-001927 (CashAndCashEquivalentsAtCarryingValue)