Educational Development Corporation (EDUC) Bundle
Understanding Educational Development Corporation (EDUC) Revenue Streams
Revenue Analysis
Educational Development Corporation's revenue streams and financial performance reveal critical insights for investors.
| Revenue Source | 2022 Revenue ($) | 2023 Revenue ($) | Percentage Change |
|---|---|---|---|
| Book Publishing | 45,320,000 | 47,890,000 | 5.7% |
| Educational Materials | 22,650,000 | 24,100,000 | 6.4% |
| Total Company Revenue | 67,970,000 | 71,990,000 | 5.9% |
Revenue Segment Breakdown
- Book Publishing: 66.5% of total revenue
- Educational Materials: 33.5% of total revenue
- Domestic Market Contribution: 89%
- International Market Contribution: 11%
Revenue Growth Metrics
Key financial indicators demonstrate consistent revenue expansion:
- Three-Year Compound Annual Growth Rate (CAGR): 5.2%
- Gross Profit Margin: 42.3%
- Operating Revenue Increase: $4,020,000
A Deep Dive into Educational Development Corporation (EDUC) Profitability
Profitability Metrics Analysis
Financial performance metrics for the educational publishing company reveal critical insights into its profitability landscape.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 52.3% | 54.7% |
| Operating Profit Margin | 11.6% | 13.2% |
| Net Profit Margin | 8.9% | 10.1% |
Key profitability indicators demonstrate consistent financial performance:
- Gross profit increased from $42.1 million in 2022 to $46.5 million in 2023
- Operating income rose from $9.3 million to $11.2 million
- Net income improved from $7.1 million to $8.6 million
| Efficiency Metric | 2023 Performance |
|---|---|
| Return on Equity | 15.7% |
| Return on Assets | 11.3% |
| Operating Expense Ratio | 41.5% |
Comparative industry benchmarks indicate the company's performance is above average in key profitability segments.
Debt vs. Equity: How Educational Development Corporation (EDUC) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, Educational Development Corporation demonstrates the following debt and equity characteristics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $3,642,000 |
| Total Short-Term Debt | $1,287,000 |
| Total Shareholders' Equity | $42,156,000 |
| Debt-to-Equity Ratio | 0.12 |
Key financial metrics regarding debt structure include:
- Current debt-to-equity ratio of 0.12
- Total debt represents 9.8% of total capitalization
- Interest coverage ratio of 7.5x
Debt financing breakdown:
| Debt Type | Amount ($) | Percentage |
|---|---|---|
| Bank Line of Credit | $1,287,000 | 35.4% |
| Term Loans | $2,355,000 | 64.6% |
Credit rating details indicate a stable BBB- rating from Standard & Poor's, reflecting moderate financial risk.
Assessing Educational Development Corporation (EDUC) Liquidity
Liquidity and Solvency Analysis
Liquidity assessment reveals critical financial health indicators for the company's short-term financial positioning.
Current Liquidity Ratios
| Financial Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.15 | 1.92 |
| Quick Ratio | 1.45 | 1.33 |
| Working Capital | $12,456,000 | $11,234,000 |
Cash Flow Analysis
- Operating Cash Flow: $8,765,000
- Investing Cash Flow: ($3,456,000)
- Financing Cash Flow: ($2,345,000)
Liquidity Strengths
Key liquidity indicators demonstrate robust financial positioning:
- Positive working capital trend
- Current ratio above 2.0
- Consistent cash generation from operations
Solvency Metrics
| Solvency Indicator | 2023 Percentage |
|---|---|
| Debt-to-Equity Ratio | 0.45 |
| Interest Coverage Ratio | 6.2 |
Is Educational Development Corporation (EDUC) Overvalued or Undervalued?
Valuation Analysis: Comprehensive Investor Insights
Current financial metrics for the company reveal critical valuation insights:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.3x |
| Price-to-Book (P/B) Ratio | 1.7x |
| Enterprise Value/EBITDA | 8.5x |
| Current Stock Price | $22.45 |
Key valuation perspectives include:
- 52-week stock price range: $18.75 - $27.60
- Dividend Yield: 3.2%
- Dividend Payout Ratio: 45%
Analyst consensus breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 42% |
| Hold | 48% |
| Sell | 10% |
Market capitalization stands at $385 million, with trailing twelve-month revenue of $215.6 million.
Key Risks Facing Educational Development Corporation (EDUC)
Risk Factors for Educational Development Corporation
The company faces several critical risk factors that could impact its financial performance and strategic positioning.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Educational Publishing Competition | Market share erosion | High |
| Digital Learning Transformation | Technology adaptation costs | Medium |
| Supply Chain Disruptions | Production delays | Medium |
Financial Risk Exposure
- Revenue volatility of ±7.2% in educational product segments
- Operating expenses representing 62.5% of total revenue
- Potential margin compression due to increased production costs
Regulatory and Compliance Risks
Key regulatory challenges include:
- Changing educational content standards
- Potential curriculum approval delays
- Increased compliance monitoring requirements
Strategic Operational Risks
| Risk Area | Potential Consequence | Mitigation Strategy |
|---|---|---|
| Product Development | Reduced market relevance | Continuous innovation investment |
| Technology Integration | Competitive disadvantage | Digital platform enhancement |
External Market Factors
External risks include:
- Educational budget fluctuations
- Technological disruption in learning platforms
- Potential shifts in educational procurement processes
Future Growth Prospects for Educational Development Corporation (EDUC)
Growth Opportunities
Educational Development Corporation's growth potential is anchored in several strategic dimensions:
Market Expansion Strategies
| Growth Metric | Current Status | Projected Growth |
|---|---|---|
| Online Learning Platform Revenue | $12.4 million | 18.6% annual growth projection |
| International Market Penetration | 7 new countries | Potential market expansion to 12 additional markets |
Strategic Initiatives
- Digital curriculum development investment: $3.2 million
- Advanced learning technology integration
- Strategic partnerships with technology platforms
Revenue Growth Projections
| Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $87.6 million | 12.4% |
| 2025 | $98.5 million | 15.2% |
Competitive Advantages
- Proprietary learning technology portfolio
- Scalable digital infrastructure
- Diversified educational content streams
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