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
Educational Development Corporation (EDUC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.