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Is Scholastic Corporation (NASDAQ:SCHL) Potentially Underrated?

Simply Wall St

I've been keeping an eye on Scholastic Corporation (NASDAQ:SCHL) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe SCHL has a lot to offer. Basically, it is a notable dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Scholastic here.

Flawless balance sheet average dividend payer

SCHL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that SCHL has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SCHL appears to have made good use of debt, producing operating cash levels of 12.46x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:SCHL Historical Debt, July 22nd 2019

For those seeking income streams from their portfolio, SCHL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.8%.

NasdaqGS:SCHL Historical Dividend Yield, July 22nd 2019

Next Steps:

For Scholastic, there are three fundamental aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for SCHL’s future growth? Take a look at our free research report of analyst consensus for SCHL’s outlook.
  2. Historical Performance: What has SCHL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SCHL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.