Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if STRIDE INC (NYSE:LRN) is suited for quality investing. Investors should of couse do their own research, but we spotted STRIDE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Looking into the quality metrics of STRIDE INC
STRIDE INC has demonstrated significant revenue growth over the past 5 years, with a 14.89% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
The ROIC excluding cash and goodwill of STRIDE INC stands at 20.72%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
STRIDE INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 3.48, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
STRIDE INC exhibits impressive Profit Quality (5-year) with a 149.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
STRIDE INC has consistently achieved strong EBIT growth over the past 5 years, with a 45.36% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
The EBIT 5-year growth of STRIDE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
Fundamental Analysis Observations
ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, LRN scores 7 out of 10 in our fundamental rating. LRN was compared to 67 industry peers in the Diversified Consumer Services industry. LRN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LRN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make LRN suitable for growth and quality investing!
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.