📊 EDUC Key Takeaways
Is Educational Development Corp. (EDUC) a Good Investment?
Educational Development Corp faces significant structural headwinds with 33% YoY revenue decline and minimal cash generation ($1.1M on $54.3M assets). While the debt-free balance sheet and maintained profitability margins demonstrate financial discipline, weak returns (ROE 5.4%, ROA 4.3%) and heavy inventory dependence (quick ratio 0.51x) suggest a mature business in secular decline with insufficient capital efficiency.
EDUC shows unusually strong current-period profitability, with high gross, operating, and net margins supported by positive free cash flow generation. The balance sheet is conservative with no long-term debt and solid current liquidity, but the lack of visible revenue growth data and a weak quick ratio suggest investors should confirm that earnings quality and inventory conversion remain durable.
Educational Development Corp. Key Strengths (EDUC)
- Zero long-term debt with $42.8M stockholders' equity provides financial flexibility and downside protection
- Maintained healthy profitability margins (gross 59.4%, operating 23.3%, net 10.1%) despite severe revenue contraction
- Current ratio of 3.33x demonstrates adequate short-term liquidity to meet obligations
- High current-period profitability with 59.4% gross margin, 39.7% operating margin, and 29.0% net margin
- Debt-free balance sheet with $45.90M of equity against only $13.56M of liabilities
- Positive operating cash flow and free cash flow, indicating earnings are supported by cash generation
EDUC Stock Risks: Educational Development Corp. Investment Risks
- Severe 33% YoY revenue decline indicates potential secular decline or loss of competitive position in core business
- Critical cash shortage ($1.1M) relative to operational needs and $54.3M asset base creates sustainability concerns
- Weak returns on capital (ROE 5.4%, ROA 4.3%) far below cost of capital, suggesting poor asset productivity and value destruction
- No clear revenue growth trend is provided, making it harder to judge whether profitability is sustainable
- Quick ratio of 0.64x suggests liquidity depends heavily on inventory rather than near-cash assets
- Operating cash flow of $4.00M trails net income of $5.43M, which may indicate working-capital pressure or lower cash conversion
Key Metrics to Watch
- Revenue stabilization and growth trajectory in next 2-4 quarters
- Operating and free cash flow sustainability given current cash position
- Inventory levels and quick ratio trend (0.51x is concerning indicator of inventory-heavy operations)
- Revenue growth and gross margin consistency
- Inventory levels and operating cash flow conversion
Educational Development Corp. (EDUC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.33x current ratio provides a solid financial cushion.
EDUC Profit Margin, ROE & Profitability Analysis
EDUC vs Market Sector: How Educational Development Corp. Compares
How Educational Development Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Educational Development Corp. Stock Overvalued? EDUC Valuation Analysis 2026
Based on fundamental analysis, Educational Development Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Educational Development Corp. Balance Sheet: EDUC Debt, Cash & Liquidity
EDUC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Educational Development Corp.'s revenue has declined by 83% over the 5-year period, indicating business contraction. The most recent EPS of $-0.15 indicates the company is currently unprofitable.
EDUC Revenue Growth, EPS Growth & YoY Performance
EDUC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $7.0M | -$835.7K | $-0.10 |
| Q2 2026 | $4.6M | -$1.1M | $-0.15 |
| Q1 2026 | $7.1M | -$1.1M | $-0.13 |
| Q3 2025 | $11.1M | -$835.7K | $-0.10 |
| Q2 2025 | $6.5M | $188.9K | $0.02 |
| Q1 2025 | $10.0M | -$872.8K | $-0.11 |
| Q3 2024 | $16.9M | $900 | $0.00 |
| Q2 2024 | $10.6M | $188.9K | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Educational Development Corp. Dividends, Buybacks & Capital Allocation
EDUC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Educational Development Corp. (CIK: 0000031667)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EDUC
What is the AI rating for EDUC?
Educational Development Corp. (EDUC) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EDUC's key strengths?
Claude: Zero long-term debt with $42.8M stockholders' equity provides financial flexibility and downside protection. Maintained healthy profitability margins (gross 59.4%, operating 23.3%, net 10.1%) despite severe revenue contraction. ChatGPT: High current-period profitability with 59.4% gross margin, 39.7% operating margin, and 29.0% net margin. Debt-free balance sheet with $45.90M of equity against only $13.56M of liabilities.
What are the risks of investing in EDUC?
Claude: Severe 33% YoY revenue decline indicates potential secular decline or loss of competitive position in core business. Critical cash shortage ($1.1M) relative to operational needs and $54.3M asset base creates sustainability concerns. ChatGPT: No clear revenue growth trend is provided, making it harder to judge whether profitability is sustainable. Quick ratio of 0.64x suggests liquidity depends heavily on inventory rather than near-cash assets.
What is EDUC's revenue and growth?
Educational Development Corp. reported revenue of $22.9M.
Does EDUC pay dividends?
Educational Development Corp. does not currently pay dividends.
Where can I find EDUC SEC filings?
Official SEC filings for Educational Development Corp. (CIK: 0000031667) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EDUC's EPS?
Educational Development Corp. has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is EDUC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Educational Development Corp. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EDUC stock overvalued or undervalued?
Valuation metrics for EDUC: ROE of 5.4% (sector avg: 15%), net margin of 10.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is EDUC's AI grade for 2026?
Our dual AI analysis gives Educational Development Corp. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EDUC's free cash flow?
Educational Development Corp.'s operating cash flow is $2.0M, with capital expenditures of $542.8K. FCF margin is 6.4%.
How does EDUC compare to other Market stocks?
Vs Default sector averages: Net margin 10.1% (avg: 12%), ROE 5.4% (avg: 15%), current ratio 3.33 (avg: 1.8).