STRIDE INC (LRN) Stock Fundamental Analysis
NYSE:LRN - New York Stock Exchange, Inc. - US86333M1080 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to LRN. LRN was compared to 71 industry peers in the Diversified Consumer Services industry. LRN gets an excellent profitability rating and is at the same time showing great financial health properties. LRN is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make LRN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year LRN was profitable.
LRN had a positive operating cash flow in the past year.
Each year in the past 5 years LRN has been profitable.
Each year in the past 5 years LRN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.56%, LRN belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
The Return On Equity of LRN (21.12%) is better than 87.32% of its industry peers.
LRN has a better Return On Invested Capital (14.55%) than 92.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LRN is in line with the industry average of 10.64%.
The last Return On Invested Capital (14.55%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.56% | ||
| ROE | 21.12% | ||
| ROIC | 14.55% |
ROA(3y)8.12%
ROA(5y)6.23%
ROE(3y)14.65%
ROE(5y)11.29%
ROIC(3y)9.47%
ROIC(5y)7.52%
1.3 Margins
Looking at the Profit Margin, with a value of 13.10%, LRN belongs to the top of the industry, outperforming 83.10% of the companies in the same industry.
LRN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 16.49%, LRN belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.08%, LRN is in line with its industry, outperforming 46.48% of the companies in the same industry.
In the last couple of years the Gross Margin of LRN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.49% | ||
| PM (TTM) | 13.1% | ||
| GM | 39.08% |
OM growth 3Y19.4%
OM growth 5Y22.26%
PM growth 3Y29.12%
PM growth 5Y22.27%
GM growth 3Y2.45%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LRN is still creating some value.
LRN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LRN has been increased compared to 5 years ago.
The debt/assets ratio for LRN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.36 indicates that LRN is not in any danger for bankruptcy at the moment.
LRN has a better Altman-Z score (7.36) than 87.32% of its industry peers.
LRN has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as LRN would need 2.09 years to pay back of all of its debts.
LRN has a better Debt to FCF ratio (2.09) than 78.87% of its industry peers.
LRN has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
LRN's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. LRN outperforms 45.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 7.36 |
ROIC/WACC1.73
WACC8.43%
2.3 Liquidity
LRN has a Current Ratio of 5.61. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 5.61, LRN belongs to the best of the industry, outperforming 92.96% of the companies in the same industry.
LRN has a Quick Ratio of 5.53. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN has a better Quick ratio (5.53) than 92.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.61 | ||
| Quick Ratio | 5.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.47% over the past year.
LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.31% yearly.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.90%.
LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
EPS 1Y (TTM)50.47%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%26.25%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%17.77%
3.2 Future
Based on estimates for the next years, LRN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.50% on average per year.
The Revenue is expected to grow by 10.82% on average over the next years. This is quite good.
EPS Next Y44.56%
EPS Next 2Y26.61%
EPS Next 3Y21.5%
EPS Next 5YN/A
Revenue Next Year16.8%
Revenue Next 2Y12.49%
Revenue Next 3Y11.03%
Revenue Next 5Y10.82%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.62, which indicates a rather expensive current valuation of LRN.
69.01% of the companies in the same industry are more expensive than LRN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (27.45), we can say LRN is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.52, which indicates a rather expensive current valuation of LRN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 69.01% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. LRN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 70.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.63 | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
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.
A more expensive valuation may be justified as LRN's earnings are expected to grow with 21.50% in the coming years.
PEG (NY)0.49
PEG (5Y)0.55
EPS Next 2Y26.61%
EPS Next 3Y21.5%
5. Dividend
5.1 Amount
LRN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
138.6
+0.98 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners112.37%
Inst Owner Change-2.33%
Ins Owners2.68%
Ins Owner Change-0.36%
Market Cap6.03B
Analysts83.64
Price Target165.71 (19.56%)
Short Float %9.46%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.39%
Min EPS beat(2)-0.5%
Max EPS beat(2)3.28%
EPS beat(4)3
Avg EPS beat(4)86.24%
Min EPS beat(4)-0.5%
Max EPS beat(4)331.54%
EPS beat(8)7
Avg EPS beat(8)64.82%
EPS beat(12)10
Avg EPS beat(12)21.41%
EPS beat(16)13
Avg EPS beat(16)22.68%
Revenue beat(2)2
Avg Revenue beat(2)2.53%
Min Revenue beat(2)2.13%
Max Revenue beat(2)2.93%
Revenue beat(4)4
Avg Revenue beat(4)3.46%
Min Revenue beat(4)0.58%
Max Revenue beat(4)8.2%
Revenue beat(8)7
Avg Revenue beat(8)3.08%
Revenue beat(12)11
Avg Revenue beat(12)3.02%
Revenue beat(16)15
Avg Revenue beat(16)3.24%
PT rev (1m)0.91%
PT rev (3m)21.24%
EPS NQ rev (1m)6.34%
EPS NQ rev (3m)7.39%
EPS NY rev (1m)1.68%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 18.52 | ||
| P/S | 2.64 | ||
| P/FCF | 24.63 | ||
| P/OCF | 19.67 | ||
| P/B | 4.26 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)6.41
EY4.62%
EPS(NY)7.49
Fwd EY5.4%
FCF(TTM)5.63
FCFY4.06%
OCF(TTM)7.05
OCFY5.08%
SpS52.52
BVpS32.57
TBVpS22.64
PEG (NY)0.49
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.56% | ||
| ROE | 21.12% | ||
| ROCE | 19.44% | ||
| ROIC | 14.55% | ||
| ROICexc | 23.21% | ||
| ROICexgc | 36.04% | ||
| OM | 16.49% | ||
| PM (TTM) | 13.1% | ||
| GM | 39.08% | ||
| FCFM | 10.71% |
ROA(3y)8.12%
ROA(5y)6.23%
ROE(3y)14.65%
ROE(5y)11.29%
ROIC(3y)9.47%
ROIC(5y)7.52%
ROICexc(3y)14.4%
ROICexc(5y)11.23%
ROICexgc(3y)26.36%
ROICexgc(5y)21.09%
ROCE(3y)12.66%
ROCE(5y)10.14%
ROICexcg growth 3Y21.6%
ROICexcg growth 5Y11.49%
ROICexc growth 3Y26.37%
ROICexc growth 5Y16.18%
OM growth 3Y19.4%
OM growth 5Y22.26%
PM growth 3Y29.12%
PM growth 5Y22.27%
GM growth 3Y2.45%
GM growth 5Y1.54%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 54.87% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 42.95 | ||
| Cash Conversion | 62.64% | ||
| Profit Quality | 81.78% | ||
| Current Ratio | 5.61 | ||
| Quick Ratio | 5.53 | ||
| Altman-Z | 7.36 |
F-Score7
WACC8.43%
ROIC/WACC1.73
Cap/Depr(3y)62.27%
Cap/Depr(5y)61.45%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.69%
Profit Quality(3y)114.31%
Profit Quality(5y)120.41%
High Growth Momentum
Growth
EPS 1Y (TTM)50.47%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%26.25%
EPS Next Y44.56%
EPS Next 2Y26.61%
EPS Next 3Y21.5%
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%17.77%
Revenue Next Year16.8%
Revenue Next 2Y12.49%
Revenue Next 3Y11.03%
Revenue Next 5Y10.82%
EBIT growth 1Y63.97%
EBIT growth 3Y31.23%
EBIT growth 5Y40.56%
EBIT Next Year102.61%
EBIT Next 3Y35.59%
EBIT Next 5Y25.2%
FCF growth 1Y51.48%
FCF growth 3Y38.43%
FCF growth 5Y18.44%
OCF growth 1Y32.37%
OCF growth 3Y27.61%
OCF growth 5Y14.51%