NYSE:LRN stands out as a growth opportunity that won't break the bank.

Last update: Sep 16, 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.

Analyzing Growth Metrics

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:

LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.77%, 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 39.31% on average per year.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.03%.
Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
LRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.65% yearly.
The Revenue is expected to grow by 8.52% on average over the next years. This is quite good.

What does the Valuation looks like for NYSE:LRN

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 5 out of 10:

71.88% of the companies in the same industry are more expensive than LRN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (30.52), we can say LRN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than 71.88% of the companies in the same industry.
LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.99, 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 79.69% of the companies are valued more expensively.
LRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LRN is cheaper than 73.44% of the companies in the same industry.
The excellent profitability rating of LRN may justify a higher PE ratio.
LRN's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.

Looking at the Health

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:

LRN has an Altman-Z score of 5.40. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.40, LRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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's Debt to FCF ratio of 2.17 is fine compared to the rest of the industry. LRN outperforms 78.13% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that LRN is not too dependend on debt financing.
A Current Ratio of 5.10 indicates that LRN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.10, LRN belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
LRN has a Quick Ratio of 4.95. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN has a Quick ratio of 4.95. This is amongst the best in the industry. LRN outperforms 89.06% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LRN was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 10.63%, LRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
LRN has a better Return On Equity (17.36%) than 82.81% of its industry peers.
The Return On Invested Capital of LRN (11.14%) is better than 85.94% 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.
The Profit Margin of LRN (10.01%) is better than 78.13% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN has a better Operating Margin (12.23%) than 75.00% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.
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.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.