While growth is established for NYSE:LRN, the stock's valuation remains reasonable.

Last update: Nov 25, 2024

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.

What does the Growth looks like for NYSE:LRN

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:LRN, the assigned 8 reflects its growth potential:

The Earnings Per Share has grown by an impressive 52.35% over the past year.
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.
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.
The Earnings Per Share is expected to grow by 20.38% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.57% on average over the next years. This is quite good.

Understanding NYSE:LRN's Valuation Score

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 the industry average as 73.85% of the companies are valued more expensively.
LRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.29.
83.08% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.01, 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 70.77% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 66.15% of the companies listed in the same industry.
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.
LRN's earnings are expected to grow with 20.38% in the coming years. This may justify a more expensive valuation.

How do we evaluate the 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 8 out of 10:

LRN has an Altman-Z score of 6.22. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LRN (6.22) is better than 86.15% of its industry peers.
LRN has a debt to FCF ratio of 2.38. This is a good value and a sign of high solvency as LRN would need 2.38 years to pay back of all of its debts.
LRN has a better Debt to FCF ratio (2.38) than 75.38% 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.
A Current Ratio of 5.60 indicates that LRN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.60, LRN belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
A Quick Ratio of 5.50 indicates that LRN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.50, LRN belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LRN, the assigned 8 is a significant indicator of profitability:

LRN has a better Return On Assets (12.18%) than 87.69% of its industry peers.
LRN's Return On Equity of 19.78% is fine compared to the rest of the industry. LRN outperforms 80.00% of its industry peers.
LRN's Return On Invested Capital of 12.62% is amongst the best of the industry. LRN outperforms 87.69% of its industry peers.
The 3 year average ROIC (9.47%) for LRN is below the current ROIC(12.62%), indicating increased profibility in the last year.
LRN has a better Profit Margin (11.38%) than 81.54% of its industry peers.
LRN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.91%, LRN is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.
LRN's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

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.