Educational Development Corporation

EDUC

Publishing · Communication Services

Price

$1.37

+0.01 (+0.74%)

Market Cap

$11.7M

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Weak

Stability

Weak

Valuation

Strong

Dividends

Exceptional

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Winston Score History

The full picture

Educational Development Corporation (EDC) is a US-based publisher that sells children's books. The company is best known for distributing Usborne Books, a British publisher of educational and illustrated books for kids of all ages. Its main customers are parents, schools, and gift buyers looking for high-quality children's learning materials.

EDC sells its books primarily through a network of independent consultants who host book fairs and parties, similar to a direct-sales model. The company operates almost entirely in the United States and is a small-cap business with a market cap under $100 million. Its exclusive US distribution rights for Usborne Books gave it a competitive edge for years, but the company has faced declining sales as its consultant network has shrunk and consumer spending on discretionary items like books has softened — making rebuilding that sales force the central challenge ahead.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-36.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-23.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

25.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$2M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Educational Development Corporation's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.7% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 8.5M (2022) → 8.5M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

62.2%

Premium pricing power — 62.2% gross margin

Profit after running costs

Operating Margin

1.6%

Thin — 1.6% operating margin

Return on the money invested

ROCE

2.1%

Weak — 2.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

-38.5%

Shrinking sales (-38.5% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

39%

Weak — only 39% of profit becomes cash

Spare cash per sale

FCF Margin

3.9%

Thin free cash flow (3.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

0.88x

Dangerous — barely covers interest (0.9x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

3.9x

Attractive valuation — P/E 3.9

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

+2.5

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

29.20%

Healthy income — 29.20% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

+25.0%

Dividend growing fast (25.0% YoY)

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