For those who appreciate value investing, NYSE:LRN is a compelling option with its solid fundamentals.

Last update: Feb 20, 2024

Our stock screening tool has identified STRIDE INC (NYSE:LRN) as an undervalued gem with strong fundamentals. NYSE:LRN boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Evaluating Valuation: NYSE:LRN

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:LRN, the assigned 8 reflects its valuation:

LRN's Price/Earnings ratio is rather cheap when compared to the industry. LRN is cheaper than 81.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.18. LRN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio, LRN is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (21.51), we can say LRN is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, LRN is valued cheaply inside the industry as 81.54% of the companies are valued more expensively.
LRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LRN is cheaper than 80.00% of the companies in the same industry.
The 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.

Assessing Profitability for NYSE:LRN

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:LRN scores a 8 out of 10:

LRN has a Return On Assets of 9.57%. This is amongst the best in the industry. LRN outperforms 90.77% of its industry peers.
With an excellent Return On Equity value of 16.52%, LRN belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.16%, LRN belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
The 3 year average ROIC (7.75%) for LRN is below the current ROIC(10.16%), indicating increased profibility in the last year.
LRN has a better Profit Margin (8.80%) than 84.62% of its industry peers.
LRN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.02%, LRN is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.

What does the Health looks like for NYSE:LRN

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LRN scores a 8 out of 10:

LRN has an Altman-Z score of 4.37. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LRN (4.37) is better than 86.15% 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.
With an excellent Debt to FCF ratio value of 3.02, LRN belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
LRN has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.52 indicates that LRN has no problem at all paying its short term obligations.
The Current ratio of LRN (4.52) is better than 90.77% of its industry peers.
A Quick Ratio of 4.44 indicates that LRN has no problem at all paying its short term obligations.
LRN has a better Quick ratio (4.44) than 90.77% of its industry peers.

Growth Insights: 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:

The Earnings Per Share has grown by an impressive 69.96% over the past year.
LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
The Revenue has grown by 10.13% in the past year. This is quite good.
LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.89% yearly.
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 8.80% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Keep in mind

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.