Despite its growth, NYSE:LRN remains within the realm of affordability.

Last update: Aug 2, 2024

Our stock screener has singled out STRIDE INC (NYSE:LRN) as an attractive growth opportunity. NYSE:LRN is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

What does the Growth looks like for NYSE:LRN

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:LRN has earned a 7 for growth:

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.
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.
Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 9.97% in the last year.
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.
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.

A Closer Look at Valuation for NYSE:LRN

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:LRN was assigned a score of 6 for valuation:

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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.11.
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 20.79, which is the current average of the S&P500 Index.
76.19% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 68.25% 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.
The excellent profitability rating of LRN 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.

Assessing Health for NYSE:LRN

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:LRN scores a 7 out of 10:

LRN has an Altman-Z score of 4.85. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LRN (4.85) is better than 90.48% 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 69.84% 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.
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 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.

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:

Looking at the Return On Assets, with a value of 9.76%, LRN belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.75%, LRN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
Looking at the Profit Margin, with a value of 9.29%, LRN belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
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.
LRN's Operating Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of LRN for a complete fundamental analysis.

Disclaimer

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.