NYSE:LRN is not too expensive for the growth it is showing.

Last update: Jul 12, 2024

Take a closer look at STRIDE INC (NYSE:LRN), an affordable growth stock uncovered by our stock screener. NYSE:LRN boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Growth Assessment of NYSE:LRN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LRN has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 63.22% 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.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.97%.
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.
Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 9.09% on average per year.

How We Gauge Valuation 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:

LRN's Price/Earnings ratio is a bit cheaper when compared to the industry. LRN is cheaper than 75.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.91, LRN is valued a bit cheaper.
77.42% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.49, 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 79.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 69.35% of the companies are valued more expensively.
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.
A more expensive valuation may be justified as LRN's earnings are expected to grow with 23.45% in the coming years.

How We Gauge Health for NYSE:LRN

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:

An Altman-Z score of 4.63 indicates that LRN is not in any danger for bankruptcy at the moment.
LRN has a better Altman-Z score (4.63) than 91.94% 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 has a Debt to FCF ratio of 3.38. This is in the better half of the industry: LRN outperforms 69.35% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that LRN is not too dependend on debt financing.
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 Current ratio of 4.29. This is amongst the best in the industry. LRN outperforms 90.32% of its industry peers.
A Quick Ratio of 4.21 indicates that LRN has no problem at all paying its short term obligations.
The Quick ratio of LRN (4.21) is better than 90.32% of its industry peers.

Evaluating Profitability: NYSE:LRN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LRN, the assigned 8 is a significant indicator of profitability:

LRN's Return On Assets of 9.76% is amongst the best of the industry. LRN outperforms 88.71% of its industry peers.
LRN has a Return On Equity of 16.75%. This is amongst the best in the industry. LRN outperforms 85.48% 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 85.48% of the companies in the same industry.
The 3 year average ROIC (7.75%) for LRN is below the current ROIC(10.45%), indicating increased profibility in the last year.
LRN's Profit Margin of 9.29% is amongst the best of the industry. LRN outperforms 82.26% 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 11.55%, LRN is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.

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Our latest full fundamental report of LRN contains the most current fundamental analsysis.

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.