SCHL - Scholastic Corporation Is Trading At Less Than Book Value. It Is A Good Value Pick
- The company currently trades below its tangible book value of approximately $30 per share compared to a recent share price of $25.
- Scholastic is also trading at a P/B of 0.7x, a 30% discount to its 5-year average P/B ratio of 1x.
- Looking at the balance sheet, the company’s asset mainly consists of current assets (50%) and Property, Plant and Equipment (33%), with intangibles and other assets accounting for the rest.
- Currently, analysts are expecting revenues for fiscal 22’ of $1.5 billion, which is still below 2019 sales by 5.5%. However, due to cost reduction initiatives, EBITDA is expected to be approximately $136 million, or up approximately 12.3% from 2019 levels.
- A rebound in the company’s operations could cause the market to at least price Scholastic at its book value.
For further details see:
Scholastic Corporation Is Trading At Less Than Book Value. It Is A Good Value Pick