Scholastic Corporation (SCHL): fair value, margin of safety and Wheel Score

Is SCHL undervalued?

At 38.94 (close of 16 Oct 2026), SCHL trades 37% below the GLS average fair value of 61.77. That average comes from 8 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Scholastic Corporation the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 8 models disagree widely: DDM gives 12.51 while Graham Growth gives 171.64. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files SCHL under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for SCHL

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health SCHL scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 5.0%, ROE 7.6%, ROA 3.3% - with debt at 0.52 times equity and negative free cash flow.

The dividend yield is 2.18% at a payout ratio of 33%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Childrens Book Publishing And Distribut… 49%, Rest of world 28%, Education 14% (quarter Q1 FY2027).

Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 78: Good

SCHL scores 78 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (11/20). Moat (6/15) is the part holding the score back.

Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 2,169 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 428k shares a day on a market cap of $735M, with a beta of 1.08; the Stability part of the Wheel Score gives that 11 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 17 Dec 2026, 62 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 30 Oct 2026 (0.2500 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Publishing

The 12 companies below are the closest to Scholastic Corporation by market cap within the Publishing industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare SCHL with 7 of them   All Communication Services stocks →