Don't overlook NYSE:LRN—a stock with solid growth prospects and a reasonable valuation.

Our stock screening tool has pinpointed STRIDE INC (NYSE:LRN) as a growth stock that isn't overvalued. NYSE:LRN is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Assessment of 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 63.22% over the past year.
• The Earnings Per Share has been growing by 34.60% on average over the past years. This is a very strong growth
• Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 9.97% 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.
• The Earnings Per Share is expected to grow by 20.92% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 8.78% on average over the next years. This is quite good.

Valuation Examination for NYSE:LRN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:LRN boasts 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 76.56% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (28.11), we can say LRN is valued slightly cheaper.
• 79.69% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 20.39. LRN is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 75.00% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
• 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.
• A more expensive valuation may be justified as LRN's earnings are expected to grow with 20.92% in the coming years.

Understanding NYSE:LRN's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:LRN, the assigned 7 reflects its health status:

• LRN has an Altman-Z score of 4.78. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of LRN (4.78) is better than 92.19% of its industry peers.
• The Debt to FCF ratio of LRN is 3.38, which is a good value as it means it would take LRN, 3.38 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.38, LRN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
• A Debt/Equity ratio of 0.40 indicates that LRN is not too dependend on debt financing.
• A Current Ratio of 4.29 indicates that LRN has no problem at all paying its short term obligations.
• LRN has a better Current ratio (4.29) than 90.63% of its industry peers.
• LRN has a Quick Ratio of 4.21. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
• LRN's Quick ratio of 4.21 is amongst the best of the industry. LRN outperforms 90.63% of its industry peers.

How do we evaluate the Profitability for NYSE:LRN?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:LRN, the assigned 8 is noteworthy for profitability:

• The Return On Assets of LRN (9.76%) is better than 89.06% of its industry peers.
• LRN has a Return On Equity of 16.75%. This is amongst the best in the industry. LRN outperforms 85.94% of its industry peers.
• LRN's Return On Invested Capital of 10.45% is amongst the best of the industry. LRN outperforms 87.50% of its industry peers.
• The last Return On Invested Capital (10.45%) for LRN is above the 3 year average (7.75%), which is a sign of increasing profitability.
• LRN's Profit Margin of 9.29% is amongst the best of the industry. LRN outperforms 84.38% of its industry peers.
• LRN's Profit Margin has improved in the last couple of years.
• The Operating Margin of LRN (11.55%) is better than 71.88% of its industry peers.
• 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.

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.