NYSE:LRN is not too expensive for the growth it is showing.

Consider STRIDE INC (NYSE:LRN) as an affordable growth stock, identified by our stock screening tool. NYSE:LRN is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

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:

• LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.26%, which is quite impressive.
• Measured over the past years, LRN shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.31% on average per year.
• Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
• 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 21.45% on average per year.
• LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.35% yearly.

Evaluating Valuation: 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 6 out of 10:

• LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than 73.44% of the companies in the same industry.
• The average S&P500 Price/Forward Earnings ratio is at 22.70. LRN is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 62.50% of the companies listed 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.
• A more expensive valuation may be justified as LRN's earnings are expected to grow with 21.45% in the coming years.

How We Gauge Health for NYSE:LRN

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LRN has received a 8 out of 10:

• An Altman-Z score of 7.39 indicates that LRN is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 7.39, LRN belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
• LRN has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
• LRN has a Debt to FCF ratio of 1.96. This is in the better half of the industry: LRN outperforms 78.13% of its industry peers.
• LRN has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 6.02 indicates that LRN has no problem at all paying its short term obligations.
• LRN has a Current ratio of 6.02. This is amongst the best in the industry. LRN outperforms 92.19% of its industry peers.
• A Quick Ratio of 5.93 indicates that LRN has no problem at all paying its short term obligations.
• LRN's Quick ratio of 5.93 is amongst the best of the industry. LRN outperforms 92.19% of its industry peers.

Analyzing Profitability Metrics

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:

• The Return On Assets of LRN (13.03%) is better than 90.63% of its industry peers.
• Looking at the Return On Equity, with a value of 20.46%, LRN belongs to the top of the industry, outperforming 82.81% of the companies in the same industry.
• LRN has a better Return On Invested Capital (13.60%) than 89.06% of its industry peers.
• The last Return On Invested Capital (13.60%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 12.30%, LRN belongs to the top of the industry, outperforming 81.25% 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 (15.25%) than 79.69% 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.

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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.