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

Last update: Jun 20, 2024

STRIDE INC (NYSE:LRN) was identified as an affordable growth stock by our stock screener. NYSE:LRN is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: 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.
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 9.97%.
The Revenue has been growing by 14.89% on average over the past years. This is quite good.
Based on estimates for the next years, LRN will show a very strong growth in Earnings Per Share. The EPS will grow by 23.45% on average per year.
The Revenue is expected to grow by 9.09% on average over the next years. This is quite good.

Understanding NYSE:LRN's Valuation Score

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:

Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 71.43% of the companies listed in the same industry.
LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than 77.78% of the companies in the same industry.
LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.21, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
69.84% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
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 23.45% in the coming years. This may justify a more expensive valuation.

Health Examination for 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 4.69 indicates that LRN is not in any danger for bankruptcy at the moment.
LRN has a better Altman-Z score (4.69) than 93.65% of its industry peers.
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.
LRN's Debt to FCF ratio of 3.38 is fine compared to the rest of the industry. LRN outperforms 69.84% of its industry peers.
LRN has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 4.29 indicates that LRN has no problem at all paying its short term obligations.
LRN has a Current ratio of 4.29. This is amongst the best in the industry. LRN outperforms 88.89% of its industry peers.
A Quick Ratio of 4.21 indicates that LRN has no problem at all paying its short term obligations.
LRN has a better Quick ratio (4.21) than 88.89% of its industry peers.

Profitability Assessment of 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 9.76%. This is amongst the best in the industry. LRN outperforms 88.89% of its industry peers.
With an excellent Return On Equity value of 16.75%, LRN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of LRN (10.45%) is better than 85.71% of its industry peers.
The 3 year average ROIC (7.75%) for LRN is below the current ROIC(10.45%), indicating increased profibility in the last year.
LRN has a Profit Margin of 9.29%. This is amongst the best in the industry. LRN outperforms 82.54% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
With a decent Operating Margin value of 11.55%, LRN is doing good in the industry, outperforming 73.02% of the companies in the same industry.
In the last couple of years the Operating Margin of LRN has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.