(EDUC) Educational Development - Ratings and Ratios

Educational Development Corporation (NASDAQ:EDUC) is a specialized distributor of childrens educational products, including books, toys, and games, designed to foster learning and creativity in young audiences. The company operates through two core segments: PaperPie, which focuses on innovative, hands-on learning tools, and Publishing, which emphasizes high-quality educational content. Its product portfolio includes touch-and-feel board books, activity books, flashcards, art books, and foreign language materials, as well as internet-linked books that integrate digital learning with traditional content. The company also offers learning manipulatives and educational toys that align with curriculum standards. Products are distributed through a diverse network, including retail stores, school supply stores, toy and gift shops, museums, and a combination of internal and external sales channels. Established in 1965, Educational Development Corporation is headquartered in Tulsa, Oklahoma, and has built a reputation for delivering engaging, age-appropriate educational resources to students and educators across the U.S.

Over the next three months, Educational Development Corporation is expected to face a challenging environment based on current technical and fundamental trends. Technically, the stock is trading below its 20-day, 50-day, and 200-day moving averages, suggesting bearish momentum. With an ATR of 0.11, volatility is expected to remain low, but the stocks average daily volume of 9,704 shares indicates limited liquidity, which could amplify price movements. On the fundamental side, the companys market cap of $12.45 million reflects its micro-cap status, and its price-to-book ratio of 0.30 signals undervaluation relative to its book value. However, the negative return on equity (-13.23%) and lack of profitability raise concerns about its ability to generate shareholder value. The absence of a P/E ratio further complicates valuation assessments. Overall, while the companys niche focus on educational products could attract value investors, its weak profitability metrics and technical downtrend may deter near-term buying interest. Investors should monitor for signs of operational improvement or strategic initiatives that could drive a reversal in sentiment.