Educational DevelopmentEDUC -0.65%45 Gross Margin % is 59.10% as of Feb. 2026, which is 12% below its 10-year median of 67.25. GuruFocus rates EDUC with a GF Score™ of 45/100 and a GF Value™ of $0.82 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 946 Media - Diversified companies, Educational Development ranks better than 73.36% on this metric.
EDUC's Gross Margin % is ranked better than 73.36% of 946
companies
in the Media - Diversified industry
Industry Median: 38.91
vs EDUC: 59.37
Educational Development had a gross margin of 59.10% for the quarter that ended in Feb. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Educational Development was -3.40% per year.
Educational Development (NAS:EDUC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Educational Development had a gross margin of 59.10% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Educational Development Gross Margin % Related Terms
Educational Development Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Publishing subindustry, Educational Development's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Educational Development Gross Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Educational Development's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Educational Development's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Educational Development (EDUC) has a Gross Margin % of 59.10% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Educational Development and its competitors. This is 12% below median its historical median of 67.25. Over the past decade, Educational Development's Gross Margin % has ranged from 59.37 to 73.17. According to the industry distribution chart, Educational Development ranks #252 out of 946 companies in the Media - Diversified industry, placing it in the top 26.6%.
Is Educational Development's Gross Margin % too high?
Educational Development's current Gross Margin % of 59.10% is 12% below median its 10-year median of 67.25. Over the past 10 years, this metric has ranged from a low of 59.37 to a high of 73.17. The Media - Diversified industry median Gross Margin % is 38.91. Educational Development's value of 59.10% is 51.9% above this industry median. Based on the distribution chart, Educational Development ranks #252 out of 946 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Educational Development has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Educational Development's Gross Margin % compare to TNMG and NYT?
According to the Media - Diversified industry distribution chart, Educational Development ranks #252 out of 946 companies for Gross Margin %. This puts Educational Development in the upper half of its industry. The industry median Gross Margin % is 38.91. Educational Development's value of 59.10% is 51.9% above this benchmark. Historically, Educational Development's own Gross Margin % has ranged from 59.37 to 73.17 over the past decade. While the company's 10-year median is 67.25 vs. the industry median of 38.91, Educational Development has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Media - Diversified company?
The median Gross Margin % among Media - Diversified companies is 38.91, based on 946 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Educational Development's current Gross Margin % of 59.10% is 51.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Educational Development and its competitors. For the Media - Diversified industry, the median Gross Margin % is 38.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Educational Development's current Gross Margin % is 59.10%, which is 12% below median its own 10-year median of 67.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Educational Development stock overvalued right now?
Based on GuruFocus' analysis, Educational Development (EDUC) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.82, compared to a current price of $1.55 — trading 88.4% above its estimated fair value. The current Gross Margin % is 59.10%, which is 12% below median its 10-year median of 67.25 and 51.9% above the Media - Diversified industry median of 38.91. Educational Development's overall GF Score™ is 45/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Educational Development (EDUC), the current Gross Margin % is 59.10% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Educational Development (EDUC) Overvalued in 2026?
Based on GuruFocus' analysis, Educational Development stock appears to be overvalued.
The current stock price of $1.55 is trading 88.4% above its estimated GF Value™ of $0.82.
GuruFocus considers Educational Development to be Significantly Overvalued.
Key valuation signals for EDUC:
Gross Margin %: 59.10% (12% below median its 10-year median of 67.25)
GF Value™: $0.82 vs. price of $1.55 (88.4% above fair value)
Industry Position: 51.9% above the Media - Diversified median (#252 of 946)
No single metric tells the full story. See the EDUC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Educational Development Corp distributes books and educational products and publications through its PaperPie and EDC Publishing divisions to individual consumers, book, toy and gift stores, libraries and home educators located throughout the United States. The company is 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. It also the exclusive United States Multi-Level Marketing (MLM) distributor of Usborne Publishing Limited (Usborne) children's books. It sell children's books, educational toys and games and other related products. It has two reportable segments: PaperPie and Publishing of which majority of revenue comes from Paperpie.
45GF Score
Get the complete analysis for EDUC
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
EDUC has been successfully added to your 
