NYSE:LRN stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Jan 3, 2025

Uncover the hidden value in STRIDE INC (NYSE:LRN) as our stock screening tool recommends it as an undervalued choice. NYSE:LRN maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Assessing Valuation for NYSE:LRN

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:LRN has received a 7 out of 10:

Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 68.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.09, LRN is valued a bit cheaper.
LRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. LRN is cheaper than 80.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.45, LRN is valued a bit cheaper.
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
66.67% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
LRN's 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.
A more expensive valuation may be justified as LRN's earnings are expected to grow with 20.41% in the coming years.

Understanding NYSE:LRN's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LRN has achieved a 8:

LRN has a better Return On Assets (12.18%) than 88.89% of its industry peers.
The Return On Equity of LRN (19.78%) is better than 80.95% of its industry peers.
With an excellent Return On Invested Capital value of 12.62%, LRN belongs to the best of the industry, outperforming 88.89% 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.
Looking at the Profit Margin, with a value of 11.38%, LRN belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN has a better Operating Margin (13.91%) than 76.19% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.
LRN's Gross Margin has improved in the last couple of years.

Assessing Health for NYSE:LRN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:LRN has earned a 7 out of 10:

An Altman-Z score of 6.30 indicates that LRN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.30, LRN belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
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 74.60% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that LRN is not too dependend on debt financing.
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's Current ratio of 5.60 is amongst the best of the industry. LRN outperforms 93.65% of its industry peers.
A Quick Ratio of 5.50 indicates that LRN has no problem at all paying its short term obligations.
The Quick ratio of LRN (5.50) is better than 93.65% of its industry peers.

Understanding NYSE:LRN's Growth

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:LRN has achieved a 7 out of 10:

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
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.55%.
Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
LRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.41% yearly.
The Revenue is expected to grow by 8.70% on average over the next years. This is quite good.

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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.