For those who appreciate growth without the sticker shock, NYSE:LRN is worth considering.

Take a closer look at STRIDE INC (NYSE:LRN), an affordable growth stock uncovered by our stock screener. NYSE:LRN boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

How We Gauge Growth 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 7 reflects its growth potential:

• LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.35%, which is quite impressive.
• LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.31% yearly.
• Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 11.55% in the last year.
• LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
• Based on estimates for the next years, LRN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.41% on average per year.
• The Revenue is expected to grow by 8.70% on average over the next years. This is quite good.

What does the Valuation looks like for NYSE:LRN

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:LRN was assigned a score of 7 for valuation:

• 68.25% of the companies in the same industry are more expensive than LRN, based on the Price/Earnings ratio.
• The average S&P500 Price/Earnings ratio is at 27.40. LRN is valued slightly cheaper when compared to this.
• 80.95% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 23.67. LRN is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than 71.43% of the companies in the same industry.
• LRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LRN is cheaper than 66.67% 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.
• The excellent profitability rating of LRN may justify a higher PE ratio.
• LRN's earnings are expected to grow with 20.41% in the coming years. This may justify a more expensive valuation.

Health Assessment of 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 7 out of 10:

• An Altman-Z score of 6.31 indicates that LRN is not in any danger for bankruptcy at the moment.
• LRN's Altman-Z score of 6.31 is amongst the best of the industry. LRN outperforms 88.89% 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 74.60% of its industry peers.
• A Debt/Equity ratio of 0.38 indicates that LRN is not too dependend on debt financing.
• A Current Ratio of 5.60 indicates that LRN has no problem at all paying its short term obligations.
• LRN has a Current ratio of 5.60. This is amongst the best in the industry. LRN outperforms 93.65% of its industry peers.
• LRN has a Quick Ratio of 5.50. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
• LRN has a better Quick ratio (5.50) than 93.65% of its industry peers.

Analyzing Profitability Metrics

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:

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

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

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

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.