Educational Development Corporation
( a) General Description of Business We are the owner and exclusive publisher of Kane Miller children s books; Learning Wrap-Ups, maker of educational manipulatives; and SmartLab Toys, maker of STEAM-based toys and games. We are also the exclusive United States Multi-Level Marketing ( MLM ) distributor of Usborne Publishing Limited ( Usborne ) children s books.
$1.03
+$0.00 (+0.00%)
EOD Oct 21, 2026
44.26% operating margin is above average. ROIC at 12.08%.
Revenue declined 33.0% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 47% versus the prior year, cash generation momentum has weakened. ROIC dropped from 16.78% to 12.08%, capital efficiency is deteriorating.
5.1x earnings, 49.7x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$20M
▼ -33.0% YoY
Net Income (TTM)
$2M
▲ +144.2% YoY
Op. Margin
45.08%
▼ -0.4pp YoY
ROIC
10.44%
▼ -4.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$177K
▼ -47.2% YoY
Op. Cash Flow (TTM)
$600K
▼ -37.6% YoY
Net Debt
$5M
Cash & Equiv.
$1M
5Y CAGR: -35.5%
5Y CAGR: -16.8%
Continue Research
SourceComputed from the 10-Q filed 5 Oct 2026, covering the period ending 31 Aug 2026, as reported to the SEC. Data last refreshed 15 Oct 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Feb. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Educational Development (EDUC) overvalued?
At a P/E of 5.1 and a price-to-free-cash-flow of 49.7, Educational Development (EDUC) trades above a two-stage DCF intrinsic value of about $-0.28 per share, so at $1.03 the stock looks overvalued (127.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Educational Development scores 28/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Educational Development's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-0.28 per share for EDUC, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-0.21. At today's $1.03, that puts the stock about 127.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Educational Development a high-quality business?+
Educational Development scores 28 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 45.1% operating margin and a 10.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Educational Development a good stock to buy right now?+
That depends on valuation and quality together, not either alone. EDUC currently trades above its estimated intrinsic value and scores 28/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
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Spot a number that looks wrong? Check it in EDUC's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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