NYSE:LRN is showing decent growth, but is still valued reasonably.

Here's STRIDE INC (NYSE:LRN) for you, a growth stock our stock screener believes is undervalued. NYSE:LRN is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Assessing Growth Metrics 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:

• The Earnings Per Share has grown by an impressive 57.77% over the past year.
• The Earnings Per Share has been growing by 39.31% on average over the past years. This is a very strong growth
• The Revenue has grown by 11.03% in the past year. This is quite good.
• The Revenue has been growing by 14.97% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
• Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.

Valuation Examination 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 5 for valuation:

• Based on the Price/Earnings ratio, LRN is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
• LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 30.04, which is the current average of the S&P500 Index.
• 73.02% 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 21.67, LRN is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, LRN is valued cheaply inside the industry as 82.54% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
• The excellent profitability rating of LRN may justify a higher PE ratio.

ChartMill's Evaluation of Health

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 8 out of 10:

• LRN has an Altman-Z score of 5.37. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of LRN (5.37) is better than 88.89% of its industry peers.
• The Debt to FCF ratio of LRN is 2.17, which is a good value as it means it would take LRN, 2.17 years of fcf income to pay off all of its debts.
• LRN has a Debt to FCF ratio of 2.17. This is in the better half of the industry: LRN outperforms 79.37% of its industry peers.
• A Debt/Equity ratio of 0.38 indicates that LRN is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for LRN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• LRN has a Current Ratio of 5.10. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 5.10, LRN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
• A Quick Ratio of 4.95 indicates that LRN has no problem at all paying its short term obligations.
• LRN has a Quick ratio of 4.95. This is amongst the best in the industry. LRN outperforms 88.89% of its industry peers.

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 (10.63%) is better than 88.89% of its industry peers.
• Looking at the Return On Equity, with a value of 17.36%, LRN belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
• LRN has a better Return On Invested Capital (11.14%) than 85.71% of its industry peers.
• The last Return On Invested Capital (11.14%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 10.01%, LRN belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
• LRN's Profit Margin has improved in the last couple of years.
• LRN has a better Operating Margin (12.23%) than 74.60% of its industry peers.
• In the last couple of years the Operating Margin of LRN has grown nicely.
• LRN's Gross 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.

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

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.