Educational Development Corp (EDUC) stock analysis
Close on Nov 12, 2026Market cap $7.25MP/E 4.5Yield 0.00%
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
Educational Development passes 10 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 6/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 82.6% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $0.91 is below our fair value estimate of $5.23.
P/E below its 5-year median
Educational Development's P/E of 4.8 is below its own 5-year median of 6.3.
P/E below the industry
Educational Development's P/E of 4.8 is below the Wholesale Trade-non-durable Goods median of 22.6.
What to watch
Return on equity under 15%
Return on equity was 4.4% over the last twelve months and averaged 1.6% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 28.7% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew -36.1% a year over the last three fiscal years, short of the 10% we look for.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.13; above 3 is the safe zone and below 1.8 the distress zone.
Valuation6/6
P/E below its 5-year median
Educational Development's P/E of 4.8 is below its own 5-year median of 6.3.
P/E below the industry
Educational Development's P/E of 4.8 is below the Wholesale Trade-non-durable Goods median of 22.6.
EV/EBITDA below its 5-year median
Educational Development's EV/EBITDA of 0.9 is below its 5-year median of 7.2.
P/B below the industry
Educational Development's price-to-book of 0.19 is below the Wholesale Trade-non-durable Goods median of 1.69.
Trading below fair value
The share price of $0.91 is below our fair value estimate of $5.23.
Margin of safety over 20%
The price is 82.6% below fair value, more than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew -36.1% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -32.0% over the last twelve months; the Wholesale Trade-non-durable Goods median is 3.8%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 60.1% over the last twelve months, against 60.3% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 4.4% over the last twelve months and averaged 1.6% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Educational Development's return on equity of 4.4% is above the Wholesale Trade-non-durable Goods median of -6.0%.
Earnings shrank over 5 years
Net income shrank 28.7% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 8.6% over the last twelve months, against a 5-year average of -0.2%.
Net margin above the industry
Educational Development's net margin of 8.6% is above the Wholesale Trade-non-durable Goods median of -0.1%.
Financial health1/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 3.27 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.13; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Educational Development has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$5.23
The share price is 83% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 14.4× | 6.3× | 22.6× | $2.73 | 40% |
| EV/EBITDA | 9.5× | 7.2× | 11.8× | $8.13 | 35% |
| P/B | 1.0× | 0.3× | 1.7× | $4.69 | 10% |
| Earnings power | 8.7% cost of equity | – | – | $5.48 | 15% |
| Fair value | $5.23 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 6.3
- Wholesale Trade-non-durable Goods median 22.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $25.25K
- Value traded per 1% price move
- $27.07K
Downside
Medium risk
- Typical loss in a bad month
- 24.9%
- Volatility (annualized)
- 33%
- Sharpe ratio, 1 year
- -1.12
- Beta to the S&P 500 (5Y)
- 0.76
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -33.0% | -36.1% | -35.5% | -9.7% | |
| Gross profit | -35.3% | -37.6% | -37.7% | -10.9% | |
| Net income | – | – | -28.7% | +0.9% | |
| EPS, diluted | – | – | -29.0% | +0.4% | |
| Free cash flow | -47.2% | – | -16.8% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 20.1% | 36.2% | 5.6% | |
| Return on assets | 4.9% | 16.4% | 3.5% | |
| Current ratio | 1.28 | 1.53 | 3.33 | |
| Debt to equity | 1.42 | 0.27 | 0.00 | |
| Inventory turnover | 1.1× | 1.5× | 0.4× | |
| Capex to revenue | 2.3% | 2.0% | 2.4% | |
| Diluted shares | 8M | 8M | 9M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Educational Development generated $35.17M from operations and spent $12.10M on capital expenditure, dividends and share buybacks. 59% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 10.1% | 0.35× | 1.59× | 5.6% |
| FY2024 | -15.4% | 0.41× | 1.96× | -12.2% |
| FY2023 | 1.1% | 0.54× | 2.10× | 1.2% |
| FY2022 | -2.9% | 0.84× | 2.28× | -5.4% |
| FY2021 | 5.8% | 1.43× | 2.28× | 19.1% |
| FY2020 | 6.2% | 2.67× | 2.20× | 36.2% |
| FY2019 | 5.0% | 1.69× | 2.42× | 20.4% |
| FY2018 | 5.6% | 1.81× | 2.83× | 28.8% |
| FY2017 | 4.7% | 1.75× | 3.59× | 29.3% |
| FY2016 | 2.7% | 1.84× | 4.07× | 20.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$2.33M
- Cash generatingOperating cash flow above zero$2.01M
- Return on assets improvedROA up on the prior year-5.8% → 3.0%
- Earnings backed by cashOperating cash flow above net income$2.01M vs $2.33M
- Less leverageLong-term debt to assets fell0.0% → 0.0%
- Better liquidityCurrent ratio rose1.40 → 3.33
- No dilutionShare count did not rise8M → 9M
- Gross margin improvedGross margin up on the prior year61.50% → 59.37%
- More efficientAsset turnover rose0.38 → 0.29
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