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Why Quality Investors May Find STRIDE INC (NYSE:LRN) Attractive.

By Mill Chart

Last update: Dec 12, 2024

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.


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Highlighting Notable Quality Metrics of NYSE:LRN.

  • 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.
  • With a favorable Debt/Free Cash Flow Ratio of 2.38, STRIDE INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a robust Profit Quality (5-year) ratio of 120.0%, STRIDE INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • 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.
  • STRIDE INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to LRN. LRN was compared to 67 industry peers in the Diversified Consumer Services industry. LRN gets an excellent profitability rating and is at the same time showing great financial health properties. An interesting combination arises when we look at growth and value: LRN is growing strongly while it also seems undervalued. These ratings would make LRN suitable for value and growth and quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

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.

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