Is EDUCATIONAL DEVELOPMENT CORP (EDUC) Halal?

NASDAQ Communication Services United States $11M
✗ NOT HALAL
Confidence: 90/100
EDUCATIONAL DEVELOPMENT CORP (EDUC) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 283.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. EDUCATIONAL DEVELOPMENT CORP operates in the Communication Services sector.

Shariah Screening — 5 Standards

Based on financial data from February 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 283.8%
/ 30%
3.8%
/ 30%
18.6%
/ 30%
6.17%
/ 5%
✗ NOT HALAL
DJIM 283.8%
/ 33%
3.8%
/ 33%
18.6%
/ 33%
6.17%
/ 5%
✗ NOT HALAL
MSCI 41.4%
/ 33%
0.5%
/ 33%
2.7%
/ 33%
6.17%
/ 5%
✗ NOT HALAL
S&P 283.8%
/ 33%
3.8%
/ 33%
18.6%
/ 33%
6.17%
/ 5%
✗ NOT HALAL
FTSE 41.4%
/ 33%
0.5%
/ 33%
2.7%
/ 50%
6.17%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
2.7
Forward: 3.0
EPS
$0.47
P/B Ratio
0.2
EV/EBITDA
-3.0
EV: $15M
Revenue
$34M
Growth: -36.6%
Beta
1.0
Average volatility
Current Ratio
3.4

Profitability

Gross Margin 59.7%
Operating Margin -21.5%
Net Margin 16.1%
Return on Equity (ROE) 9.3%
Return on Assets (ROA) -5.6%

Cash Flow & Balance Sheet

Operating Cash Flow$3M
Free Cash Flow$3M
Total Debt$32M
Debt-to-Equity15.1
Current Ratio3.4
Total Assets$78M

Price & Trading

Last Close$1.29
50-Day MA$1.37
200-Day MA$1.33
Avg Volume32K
Beta1.0
52-Week Range
$0.92
$1.84

About EDUCATIONAL DEVELOPMENT CORP (EDUC)

CEO
Mr. Craig M. White
Employees
83
Sector
Communication Services
Industry
Publishing
Country
United States
Exchange
NASDAQ
Market Cap
$11M
Currency
USD

Educational Development Corporation distributes children's books, educational toys and games, and related products in the United States. The company operates in two segments, PaperPie and Publishing. It sells various books, including touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, and foreign language books; learning manipulatives and toys; and internet-linked books comprising science and math titles, and chapter books and novels. The company markets and sells its products to retail accounts, which include book, school supply, toy, and gift stores, as well as museums through commissioned sales representatives, trade and specialty wholesalers, its internal tele-sales group, and a network of independent sales representatives. Educational Development Corporation was incorporated in 1965 and is headquartered in Tulsa, Oklahoma.

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Frequently Asked Questions

Is EDUCATIONAL DEVELOPMENT CORP (EDUC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), EDUCATIONAL DEVELOPMENT CORP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is EDUCATIONAL DEVELOPMENT CORP's debt ratio?

EDUCATIONAL DEVELOPMENT CORP's debt ratio is 283.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 41.4%.

What are EDUCATIONAL DEVELOPMENT CORP's key financial metrics?

EDUCATIONAL DEVELOPMENT CORP has a market capitalization of $11M, trailing P/E ratio of 2.7, and revenue of $34M. The company maintains a gross margin of 59.7% and a net margin of 16.1%. Return on equity stands at 9.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.