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

Last update: Nov 1, 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 Insights: 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 8 for growth:

LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.35%, which is quite impressive.
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 11.55% in the past year. This is quite good.
LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
LRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.38% yearly.
The Revenue is expected to grow by 10.57% on average over the next years. This is quite good.

How We Gauge Valuation for NYSE:LRN

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:LRN, the assigned 7 reflects its valuation:

Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 76.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (30.16), we can say LRN is valued slightly cheaper.
82.81% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.06. LRN is valued slightly cheaper when compared to this.
76.56% 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 67.19% 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.
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 20.38% in the coming years.

How do we evaluate the Health for NYSE:LRN?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LRN has achieved a 7 out of 10:

LRN has an Altman-Z score of 5.83. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LRN (5.83) is better than 87.50% of its industry peers.
The Debt to FCF ratio of LRN is 2.38, which is a good value as it means it would take LRN, 2.38 years of fcf income to pay off all of its debts.
LRN's Debt to FCF ratio of 2.38 is fine compared to the rest of the industry. LRN outperforms 75.00% 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 5.60 indicates that LRN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.60, LRN belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
LRN has a Quick Ratio of 5.50. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LRN (5.50) is better than 93.75% of its industry peers.

What does the Profitability looks like for 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:

LRN's Return On Assets of 12.18% is amongst the best of the industry. LRN outperforms 87.50% of its industry peers.
The Return On Equity of LRN (19.78%) is better than 82.81% of its industry peers.
LRN's Return On Invested Capital of 12.62% is amongst the best of the industry. LRN outperforms 85.94% of its industry peers.
The last Return On Invested Capital (12.62%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
LRN has a Profit Margin of 11.38%. This is amongst the best in the industry. LRN outperforms 84.38% of its industry peers.
LRN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.91%, LRN is doing good in the industry, outperforming 76.56% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of LRN has grown nicely.

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For an up to date full fundamental analysis you can check the fundamental report of LRN

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.