Is SCHL a high-quality business?

AlphaMadera's AlphaQuality grade scores Scholastic Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SCHL compares to a Buffett-style quality bar.

What is Scholastic Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SCHL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SCHL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SCHL - Scholastic Corporation

Price: -- -- | CONSENSUS: Hold DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

D 34.3

5yr Avg ROIC 2.7% 24/100
Operating Margin Trend +0.14 pp/yr 59/100

Capital Efficiency

Weight: 15%

C 52.9

5yr Avg ROE 3.5% 28/100
5yr Share-Count CAGR -5.3% 100/100

Growth Quality

Weight: 15%

D+ 40.7

5yr Revenue CAGR 5.7% 64/100
5yr EPS CAGR -58.0% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

C+ 58.3

5yr FCF Margin 5.7% 53/100
5yr FCF/NI Conversion 3.74x 65/100

Balance Sheet

Weight: 20%

C- 46.2

Net Debt / EBITDA 2.38x 62/100
Interest Coverage (EBIT/Int) 0.93x 12/100
Altman Z-Score 2.52 58/100

Stability

Weight: 15%

D 38.3

EPS Volatility (σ/μ) 1.20 0/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 2/5 60/100

2 of 2 gurus held; 1 new buy; 1 trimmed.

Holders: 2 +1
Avg Δ position: -83.4%
New buys: 1
Full exits: 0

Wood new
Cooperman decreased -83%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.