NYSE:LRN is showing good growth, while it is not too expensive.

Last update: Jan 28, 2025

STRIDE INC (NYSE:LRN) was identified as an affordable growth stock by our stock screener. NYSE:LRN is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

A Closer Look at Growth for NYSE:LRN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LRN has received a 7 out of 10:

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.
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.
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.
LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.

Evaluating Valuation: NYSE:LRN

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:LRN scores a 6 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 65.63% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.39. LRN is valued slightly cheaper when compared to this.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 78.13% of the companies listed in the same industry.
LRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.37, which is the current average of the S&P500 Index.
67.19% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 65.63% of the companies in the same industry.
LRN's 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.
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 Health Score

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 7 out of 10:

An Altman-Z score of 6.74 indicates that LRN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.74, LRN belongs to the best of the industry, outperforming 90.63% 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.
With a decent Debt to FCF ratio value of 2.38, LRN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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's Current ratio of 5.60 is amongst the best of the industry. LRN outperforms 92.19% of its industry peers.
A Quick Ratio of 5.50 indicates that LRN has no problem at all paying its short term obligations.
LRN has a Quick ratio of 5.50. This is amongst the best in the industry. LRN outperforms 92.19% of its industry peers.

Understanding NYSE:LRN's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LRN was assigned a score of 8 for profitability:

LRN's Return On Assets of 12.18% is amongst the best of the industry. LRN outperforms 89.06% of its industry peers.
With an excellent Return On Equity value of 19.78%, LRN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.62%, LRN belongs to the top of the industry, outperforming 89.06% 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 82.81% of the companies in the same industry.
LRN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.91%, LRN is doing good in the industry, outperforming 76.56% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.
LRN's Gross Margin has improved in the last couple of years.

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

Check the latest full fundamental report of LRN for a complete fundamental analysis.

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.