Don't overlook NYSE:LRN—a stock with solid growth prospects and a reasonable valuation.

Last update: Dec 16, 2024

Our stock screening tool has pinpointed STRIDE INC (NYSE:LRN) as a growth stock that isn't overvalued. NYSE:LRN is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding NYSE:LRN's Growth

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 7 for growth:

The Earnings Per Share has grown by an impressive 52.35% over the past year.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.89% yearly.
Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 8.70% on average per year.

A Closer Look at Valuation for NYSE:LRN

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:LRN has achieved a 6 out of 10:

Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 69.23% of the companies in the same industry.
LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 29.00, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, LRN is valued cheaper than 83.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (23.60), we can say LRN is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than 72.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 64.62% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LRN has an outstanding profitability rating, which may justify a higher PE ratio.
LRN's earnings are expected to grow with 19.89% in the coming years. This may justify a more expensive valuation.

What does the Health looks like 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 8 out of 10:

An Altman-Z score of 6.30 indicates that LRN is not in any danger for bankruptcy at the moment.
LRN has a Altman-Z score of 6.30. This is amongst the best in the industry. LRN outperforms 86.15% 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 73.85% of its industry peers.
LRN has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
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.
LRN has a Current Ratio of 5.60. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN has a better Current ratio (5.60) than 93.85% of its industry peers.
A Quick Ratio of 5.50 indicates that LRN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.50, LRN belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.

A Closer Look at Profitability for NYSE:LRN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:LRN has earned a 8 out of 10:

LRN has a better Return On Assets (12.18%) than 87.69% of its industry peers.
Looking at the Return On Equity, with a value of 19.78%, LRN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.62%, LRN belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
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.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN has a Operating Margin of 13.91%. This is in the better half of the industry: LRN outperforms 75.38% of its industry peers.
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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

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.