NASDAQ · EDUC

Educational Development Corporation

Communication Services · Publishing

$1.310.00% ($0.00)at close

As of 4:00 PM ET

52-week

$1.10$1.84

Market cap

$11.17M

P/E

3.70

Volume

28.29K

Shares outstanding

8.52M

What the market price implies · Reverse DCF

To support a price of $1.31, this model requires revenue to grow by 11.06%/yr over the next 10 years, compounded annually.

Historical revenue grew by -37.42%/yr over the past 4 years. The required annual growth rate is 48.48 percentage points higher.

Selected forecast · Base scenario

0.8%/yr · actual 10-year annualized revenue growth

Year 1 growth: 0%

Market-implied · Base operating assumptions + edited margins

11.06%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$1.31

Estimated value / share

$1.49

Base scenario

This estimate is 13.47% above the price used.

USD · TTM ending 2026-05-31

Year 1 growth 0% · Ending margin 4.43% · Discount rate 10.8%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-05-31
Data refreshed: Sep 11, 2026, 4:30 AM UTC · cache

Why this method?

FCFF is positive, but it is still too unstable and too short-lived to anchor even a normalized FCFF DCF. Use revenue and margin assumptions instead of compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 3 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 476.9%.

Do you have 5+ years of positive FCFF history? Only 3 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Momentum disconnected from fundamentalsModerate confidence

Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.

1Y Price: 18.02%Revenue (TTM): -38.52%FCF (TTM): -74.17%P/FCF: 78th pct

What changed

The stock rose 18.02% over the last year. Revenue declined 38.52% over the trailing twelve months. Operating margin moved from -21.28% to 4.43%. Free cash flow declined 74.17% over the trailing twelve months.

What the market seems to be pricing

The stock is rising despite deteriorating fundamentals and now sits at the 78th percentile of its historical P/FCF range. This is a momentum-driven move — the market may be front-running a recovery that has not yet appeared in reported numbers.

What would invalidate this read

Operating margin (currently 4.43%) would need to stabilize or improve to justify the move. Revenue is declining 38.52% — a trend reversal in the next report would be the key signal to watch. This read is wrong if the next period shows operating metrics turning the corner. At that point the price would be anticipating real improvement rather than running ahead of it.

Performance

Return analysis

Company profile

Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States.

CEOCraig White

SectorCommunication Services

IndustryPublishing

Employees64

IPO dateMar 17, 1980

https://www.edcpub.com

Market multiples

Forward P/E—

EV/EBITDA1.20

Enterprise value$16.95M

Stock splits

Aug 23, 2018↑ Forward

Every 1 shares became 2

+100%

Apr 16, 1996↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth-36.15%

Gross margin63.85%▲0.9ppvs FY2025

Operating margin4.43%▲16.2ppvs FY2025

ROE7.45%▼0.5ppvs FY2026

Analyst consensus

Rating—

Target price—

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 14, 2026

Q4 FY26 · EPS est $0.41 · Revenue est $53.1M

View

NASDAQ · EDUC

Educational Development Corporation

Communication Services · Publishing

$1.310.00% ($0.00)at close

As of 4:00 PM ET

52-week

$1.10$1.84

Market cap

$11.17M

P/E

3.70

Volume

28.29K

Shares outstanding

8.52M

What the market price implies · Reverse DCF

To support a price of $1.31, this model requires revenue to grow by 11.06%/yr over the next 10 years, compounded annually.

Historical revenue grew by -37.42%/yr over the past 4 years. The required annual growth rate is 48.48 percentage points higher.

Selected forecast · Base scenario

0.8%/yr · actual 10-year annualized revenue growth

Year 1 growth: 0%

Market-implied · Base operating assumptions + edited margins

11.06%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$1.31

Estimated value / share

$1.49

Base scenario

This estimate is 13.47% above the price used.

USD · TTM ending 2026-05-31

Year 1 growth 0% · Ending margin 4.43% · Discount rate 10.8%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-05-31
Data refreshed: Sep 11, 2026, 4:30 AM UTC · cache

Why this method?

FCFF is positive, but it is still too unstable and too short-lived to anchor even a normalized FCFF DCF. Use revenue and margin assumptions instead of compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 3 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 476.9%.

Do you have 5+ years of positive FCFF history? Only 3 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Momentum disconnected from fundamentalsModerate confidence

Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.

1Y Price: 18.02%Revenue (TTM): -38.52%FCF (TTM): -74.17%P/FCF: 78th pct

What changed

What the market seems to be pricing

What would invalidate this read

Performance

Return analysis

Company profile

Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States.

CEOCraig White

SectorCommunication Services

IndustryPublishing

Employees64

IPO dateMar 17, 1980

https://www.edcpub.com

Market multiples

Forward P/E—

EV/EBITDA1.20

Enterprise value$16.95M

Stock splits

Aug 23, 2018↑ Forward

Every 1 shares became 2

+100%

Apr 16, 1996↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth-36.15%

Gross margin63.85%▲0.9ppvs FY2025

Operating margin4.43%▲16.2ppvs FY2025

ROE7.45%▼0.5ppvs FY2026

Analyst consensus

Rating—

Target price—

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Oct 14, 2026

Q4 FY26 · EPS est $0.41 · Revenue est $53.1M

View