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

Last update: Jan 2, 2024

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.

How do we evaluate the Growth for NYSE:LRN?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:LRN scores 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.
Measured over the past years, LRN shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.60% on average per year.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.56%.
Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.89% on average per year.
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.

What does the Valuation looks like for NYSE:LRN

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 7 out of 10:

Based on the Price/Earnings ratio, LRN is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.08. LRN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, LRN is valued cheaper than 81.25% of the companies in the same industry.
LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.99, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 79.69% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 73.44% of the companies 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.
LRN has an outstanding profitability rating, which may justify a higher PE ratio.
LRN's earnings are expected to grow with 22.12% in the coming years. This may justify a more expensive valuation.

Evaluating Health: 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:

An Altman-Z score of 4.16 indicates that LRN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.16, LRN belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
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.
The Debt to FCF ratio of LRN (3.29) is better than 79.69% 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.
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.
LRN has a Current ratio of 3.61. This is amongst the best in the industry. LRN outperforms 82.81% of its industry peers.
A Quick Ratio of 3.54 indicates that LRN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.54, LRN belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.

Profitability Assessment of NYSE:LRN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LRN has achieved a 8:

The Return On Assets of LRN (8.74%) is better than 92.19% of its industry peers.
LRN has a Return On Equity of 16.11%. This is amongst the best in the industry. LRN outperforms 89.06% of its industry peers.
With an excellent Return On Invested Capital value of 9.85%, LRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The 3 year average ROIC (7.75%) for LRN is below the current ROIC(9.85%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 8.16%, LRN belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
LRN's Profit Margin has improved in the last couple of years.
LRN has a Operating Margin of 10.44%. This is in the better half of the industry: LRN outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of LRN has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.