In this article we will dive into STRIDE INC (NYSE:LRN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed STRIDE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
A Deep Dive into STRIDE INC's Quality Metrics.
STRIDE INC has shown strong performance in revenue growth over the past 5 years, with a 14.97% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
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 favorable Profit Quality (5-year) ratio of 120.0%, STRIDE INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
With a robust 5-year EBIT growth of 40.56%, STRIDE INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
With EBIT 5-year growth outpacing its Revenue 5-year growth, STRIDE INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What is the full fundamental picture of NYSE:LRN telling us.
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
Overall LRN gets a fundamental rating of 7 out of 10. We evaluated LRN against 70 industry peers in the Diversified Consumer Services industry. LRN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: LRN is growing strongly while it also seems undervalued. With these ratings, LRN could be worth investigating further for value and growth and quality investing!.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.