While growth is established for NYSE:LRN, the stock's valuation remains reasonable.

STRIDE INC (NYSE:LRN) has caught the eye of our stock screener as an affordable growth stock. NYSE:LRN is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

A Closer Look at Growth for NYSE:LRN

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:LRN was assigned a score of 7 for growth:

• The Earnings Per Share has grown by an impressive 69.96% over the past year.
• 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.
• Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 10.13% in the last year.
• 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.
• LRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.12% yearly.
• Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 8.75% on average per year.

Evaluating Valuation: NYSE:LRN

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:LRN was assigned a score of 7 for valuation:

• Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 78.46% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 26.01. LRN is valued slightly cheaper when compared to this.
• LRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. LRN is cheaper than 83.08% of the companies in the same industry.
• LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.61, which is the current average of the S&P500 Index.
• 80.00% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
• 78.46% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
• The 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.
• LRN's earnings are expected to grow with 22.12% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:LRN

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:

• An Altman-Z score of 4.53 indicates that LRN is not in any danger for bankruptcy at the moment.
• The Altman-Z score of LRN (4.53) is better than 87.69% of its industry peers.
• LRN has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as LRN would need 3.02 years to pay back of all of its debts.
• The Debt to FCF ratio of LRN (3.02) is better than 83.08% of its industry peers.
• A Debt/Equity ratio of 0.43 indicates that LRN is not too dependend on debt financing.
• A Current Ratio of 4.52 indicates that LRN has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 4.52, LRN belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
• LRN has a Quick Ratio of 4.44. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
• LRN has a better Quick ratio (4.44) than 90.77% of its industry peers.

Analyzing Profitability Metrics

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:

• Looking at the Return On Assets, with a value of 9.57%, LRN belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 16.52%, LRN belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
• LRN has a better Return On Invested Capital (10.16%) than 87.69% of its industry peers.
• The 3 year average ROIC (7.75%) for LRN is below the current ROIC(10.16%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 8.80%, LRN belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
• In the last couple of years the Profit Margin of LRN has grown nicely.
• LRN's Operating Margin of 11.02% is fine compared to the rest of the industry. LRN outperforms 75.38% of its industry peers.
• In the last couple of years the Operating Margin of LRN has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of LRN contains the most current fundamental analsysis.

Keep in mind

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.