MeritValue

SCHOLASTIC CORP

SCHLdata completeness 88%18 fiscal years on file
The thesis, from the filings

SCHOLASTIC CORP earns about 6% on invested capital, and has bought back 32% of its shares over 5 years. The applicable estimate puts fair value near $24.28 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$1.64B1$1.7B2$1.59B3$1.63B3$1.58B3
Net income$80.9M4$86.3M5$12.1M6−$1.9M6$56.7M6
Operating cash flow$226M7$148.9M8$154.6M9$124.2M9$50.9M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$010$011$012$250M13$75M13
Cash & equivalents$316.6M14$224.5M15$113.7M16$124M17$134.9M17
Diluted shares35.6M34.7M30.4M27.6M24.2M

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
$310.25
your share of equity
Profit it earned you last year
$23.43
Free cash flow it threw off
—
Debt you’d be carrying
$30.99

10 shares is a claim on $310.25 of net worth that earned you $23.43 last year, against $30.99 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
6% avg · 5y
FY22 9%FY23 9%FY24 1%FY25 1%FY26 10%

It earned an average 6% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−32% shares · 5y

Share count is down 32% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

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
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$24.28
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$56.7M
  • growthAssumed0.0%
Graham Number
$40.42
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-05-31 · accession 0000866729-24-000018 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-05-31 · accession 0000866729-25-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-05-31 · accession 0000866729-26-000018 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-05-31 · accession 0000866729-24-000018 (NetIncomeLoss)
  5. 10-K · period ending 2023-05-31 · accession 0000866729-25-000020 (NetIncomeLoss)
  6. 10-K · period ending 2024-05-31 · accession 0000866729-26-000018 (NetIncomeLoss)
  7. 10-K · period ending 2022-05-31 · accession 0000866729-24-000018 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-05-31 · accession 0000866729-25-000020 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-05-31 · accession 0000866729-26-000018 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-05-31 · accession 0000866729-23-000019 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2023-05-31 · accession 0000866729-24-000018 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2024-05-31 · accession 0000866729-25-000020 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2025-05-31 · accession 0000866729-26-000018 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-05-31 · accession 0000866729-23-000019 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-05-31 · accession 0000866729-24-000018 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-05-31 · accession 0000866729-25-000020 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2025-05-31 · accession 0000866729-26-000018 (CashAndCashEquivalentsAtCarryingValue)