Investors should take note of NYSE:LRN, a growth stock that remains attractively priced.

Last update: May 29, 2024

Consider STRIDE INC (NYSE:LRN) as an affordable growth stock, identified by our stock screening tool. NYSE:LRN is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Unpacking NYSE:LRN's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:LRN has achieved a 7 out of 10:

LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.22%, which is quite impressive.
The Earnings Per Share has been growing by 34.60% on average over the past years. This is a very strong growth
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.97%.
The Revenue has been growing by 14.89% on average over the past years. This is quite good.
LRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.45% yearly.
The Revenue is expected to grow by 9.09% on average over the next years. This is quite good.

Assessing Valuation for NYSE:LRN

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:LRN has earned a 7 for valuation:

73.44% of the companies in the same industry are more expensive than LRN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.20, LRN is valued a bit cheaper.
73.44% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, LRN is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 70.31% 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.
The excellent profitability rating of LRN may justify a higher PE ratio.
LRN's earnings are expected to grow with 23.45% in the coming years. This may justify a more expensive valuation.

Unpacking NYSE:LRN's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:LRN, the assigned 7 for health provides valuable insights:

LRN has an Altman-Z score of 4.73. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.73, LRN belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
LRN has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as LRN would need 3.38 years to pay back of 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 71.88% of the companies in the same industry.
LRN has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
LRN has a Current Ratio of 4.29. This indicates that LRN is financially healthy and has no problem in meeting 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.

Exploring NYSE:LRN's Profitability

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:

LRN has a Return On Assets of 9.76%. This is amongst the best in the industry. LRN outperforms 89.06% of its industry peers.
LRN has a better Return On Equity (16.75%) than 85.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.45%, LRN belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
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.
The Profit Margin of LRN (9.29%) is better than 84.38% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN has a better Operating Margin (11.55%) than 71.88% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.

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

For an up to date full fundamental analysis you can check the fundamental report of LRN

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.