NYSE:LRN is showing decent growth, but is still valued reasonably.

Last update: Nov 20, 2023

STRIDE INC (NYSE:LRN) was identified as an affordable growth stock by our stock screener. NYSE:LRN is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Understanding NYSE:LRN's Growth Score

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:LRN, the assigned 7 reflects its growth potential:

LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.69%, which is quite impressive.
LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.56%.
LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.89% yearly.
Based on estimates for the next years, LRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.76% on average per year.
LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.

Deciphering NYSE:LRN's Valuation Rating

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:LRN scores a 6 out of 10:

73.13% of the companies in the same industry are more expensive than LRN, based on the Price/Earnings ratio.
LRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.28.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than the industry average as 76.12% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 19.41. LRN is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 77.61% of the companies are valued more expensively.
73.13% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
The excellent profitability rating of LRN may justify a higher PE ratio.
LRN's earnings are expected to grow with 15.76% in the coming years. This may justify a more expensive valuation.

Assessing Health for NYSE:LRN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:LRN was assigned a score of 7 for health:

LRN has an Altman-Z score of 4.09. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
LRN has a better Altman-Z score (4.09) than 86.57% of its industry peers.
The Debt to FCF ratio of LRN is 3.29, which is a good value as it means it would take LRN, 3.29 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.29, LRN is doing good in the industry, outperforming 79.10% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that LRN is not too dependend on debt financing.
LRN has a Current Ratio of 3.61. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (3.61) is better than 82.09% of its industry peers.
LRN has a Quick Ratio of 3.54. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN's Quick ratio of 3.54 is amongst the best of the industry. LRN outperforms 83.58% of its industry peers.

How do we evaluate the Profitability for NYSE:LRN?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LRN was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 8.74%, LRN belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
LRN has a Return On Equity of 16.11%. This is amongst the best in the industry. LRN outperforms 88.06% of its industry peers.
LRN has a better Return On Invested Capital (9.85%) than 88.06% of its industry peers.
The last Return On Invested Capital (9.85%) for LRN is above the 3 year average (7.75%), which is a sign of increasing profitability.
The Profit Margin of LRN (8.16%) is better than 82.09% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
The Operating Margin of LRN (10.44%) is better than 74.63% of its industry peers.
In the last couple of years the Operating Margin of LRN has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Check the latest full fundamental report of LRN for a complete fundamental analysis.

Disclaimer

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.