Scholastic Has A New Lease On Life (Rating Upgrade)

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(10min)CommentsSummaryScholastic Corporation is upgraded from 'hold' to a soft 'buy' after operational improvements and a transformative sale-leaseback transaction.Despite Q3 revenue missing expectations, SCHL's EPS of $2.55 far surpassed forecasts, aided by a $119.8M gain from asset sales.SCHL announced an accelerated $200M share buyback via Dutch auction, potentially retiring over 21% of shares at $36–$40 per share.Valuation is compelling: SCHL trades at the lowest EV/EBITDA among peers, with 2026 EBITDA guidance of $146M–$156M and positive net cash.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »Sergii Kolesnikov/iStock via Getty Images After the market closed on March 19th, the management team at Scholastic Corporation (SCHL) announced financial results covering the third quarter of the company's 2026 fiscal year. In response to this development, shares ofThis article was written byDaniel Jones36.81K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.