For those who appreciate growth without the sticker shock, NYSE:LRN is worth considering.

Last update: Dec 12, 2023

Our stock screener has spotted STRIDE INC (NYSE:LRN) as a growth stock which is not overvalued. NYSE:LRN is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Assessing Growth Metrics for NYSE:LRN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LRN has received a 7 out of 10:

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.
The Earnings Per Share is expected to grow by 22.12% on average over the next years. This is a very strong growth
LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.80% yearly.

A Closer Look at Valuation for NYSE:LRN

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:LRN has received a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 79.10% of the companies listed in the same industry.
LRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.79.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 80.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.41, LRN is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than 76.12% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 74.63% of the companies listed in the same industry.
LRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LRN may justify a higher PE ratio.
A more expensive valuation may be justified as LRN's earnings are expected to grow with 22.12% in the coming years.

Unpacking NYSE:LRN's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LRN has achieved a 8 out of 10:

LRN has an Altman-Z score of 4.21. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LRN (4.21) is better than 86.57% of its industry peers.
LRN has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as LRN would need 3.29 years to pay back of all of its debts.
LRN has a better Debt to FCF ratio (3.29) than 82.09% of its industry peers.
LRN has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 3.61 indicates that LRN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.61, LRN belongs to the best of the industry, outperforming 82.09% of the companies in the same industry.
A Quick Ratio of 3.54 indicates that LRN has no problem at all paying 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.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:LRN has earned a 8 out of 10:

The Return On Assets of LRN (8.74%) is better than 91.04% of its industry peers.
Looking at the Return On Equity, with a value of 16.11%, LRN belongs to the top of the industry, outperforming 86.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.85%, LRN belongs to the top of the industry, outperforming 88.06% of the companies in the same industry.
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.
With an excellent Profit Margin value of 8.16%, LRN belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
LRN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.44%, LRN is doing good in the industry, outperforming 74.63% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.