Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, children's publishing and education company Scholastic (SCHL 0.18%) has received an alarming one-star ranking.
With that in mind, let's take a closer look at Scholastic and see what CAPS investors are saying about the stock right now.
Scholastic facts
|
Headquarters (founded) |
New York (1920) |
|
Market Cap |
$907.4 million |
|
Industry |
Publishing |
|
Trailing-12-Month Revenue |
$2.1 billion |
|
Management |
Chairman/CEO Richard Robinson |
|
Return on Equity (average, past 3 years) |
9% |
|
Cash/Debt |
$193.1 million / $210.9 million |
|
Dividend Yield |
1.7% |
|
Competitors |
McGraw-Hill Companies (MHP +0.81%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 33% of the 106 members who have rated Scholastic believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, JohnStuartMill, succinctly summed up the Scholastic bear case for our community:
The publishing industry will continue its gradual slide down. [Scholastic] will lead the pack down with its recent cut in fiscal guidance. Cost cutting will help some, but it still leaves you with a diminished corporation. Cost cutting is targeted at [$20M] to [$30M]. This is all to meet the current revised fiscal guidance. However, I do like the fact they have agreed to withhold management bonuses for fiscal 2013 (but I'll believe it when I see it).
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