NYSE:LRN, an undervalued stock with good fundamentals.

Discover STRIDE INC (NYSE:LRN), an undervalued stock highlighted by our stock screener. NYSE:LRN showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Valuation Analysis for NYSE:LRN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:LRN has achieved a 7 out of 10:

• Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 73.02% of the companies in the same industry.
• When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (28.57), we can say LRN is valued slightly cheaper.
• Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
• LRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.18.
• LRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRN is cheaper than 77.78% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 69.84% 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.
• 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.

Profitability Insights: 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 88.89% of its industry peers.
• LRN has a Return On Equity of 16.75%. This is amongst the best in the industry. LRN outperforms 85.71% of its industry peers.
• LRN has a Return On Invested Capital of 10.45%. This is amongst the best in the industry. LRN outperforms 85.71% 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 has a Profit Margin of 9.29%. This is amongst the best in the industry. LRN outperforms 82.54% of its industry peers.
• LRN's Profit Margin has improved in the last couple of years.
• LRN's Operating Margin of 11.55% is fine compared to the rest of the industry. LRN outperforms 73.02% of its industry peers.
• In the last couple of years the Operating Margin of LRN has grown nicely.

Assessing 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 7 out of 10:

• LRN has an Altman-Z score of 4.69. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of LRN (4.69) is better than 93.65% 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.
• 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.
• Looking at the Quick ratio, with a value of 4.21, LRN belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.

Assessing Growth for NYSE:LRN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:LRN boasts 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.
• LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
• 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.
• 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.

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.

Disclaimer

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.