Is NYSE:LRN suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if STRIDE INC (NYSE:LRN) is suited for quality investing. Investors should of course do their own research, but we spotted STRIDE INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of STRIDE INC

• STRIDE INC has demonstrated significant revenue growth over the past 5 years, with a 14.97% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• STRIDE INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 27.99% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• STRIDE INC maintains a healthy Debt/Free Cash Flow Ratio of 2.38, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• The Profit Quality (5-year) of STRIDE INC stands at 120.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• STRIDE INC has consistently achieved strong EBIT growth over the past 5 years, with a 40.56% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of STRIDE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of NYSE:LRN telling us.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, LRN scores 7 out of 10 in our fundamental rating. LRN was compared to 66 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making LRN a very profitable company, without any liquidiy or solvency issues. LRN is evaluated to be cheap and growing strongly. This does not happen too often! With these ratings, LRN could be worth investigating further for value and growth and quality investing!.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.