STRIDE INC (LRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LRN - US86333M1080 - Common Stock
62.68 USD
+1.66 (+2.72%)
62.68 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to LRN. LRN was compared to 76 industry peers in the Diversified Consumer Services industry. LRN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LRN is valued quite cheap, while showing a decent growth score. This is a good combination! This makes LRN very considerable for value 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.
LRN had positive earnings in each of the past 5 years.
LRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LRN's Return On Assets of 13.54% is amongst the best of the industry. LRN outperforms 90.91% of its industry peers.
Looking at the Return On Equity, with a value of 20.68%, LRN belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
The Return On Invested Capital of LRN (16.01%) is better than 93.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LRN is above the industry average of 9.54%.
The 3 year average ROIC (11.97%) for LRN is below the current ROIC(16.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 20.68% | ||
| ROIC | 16.01% |
ROA(3y)10.13%
ROA(5y)8.29%
ROE(3y)16.74%
ROE(5y)14.46%
ROIC(3y)11.97%
ROIC(5y)10.27%
1.3 Margins
LRN's Profit Margin of 12.76% is amongst the best of the industry. LRN outperforms 80.52% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN has a Operating Margin of 17.83%. This is amongst the best in the industry. LRN outperforms 80.52% of its industry peers.
In the last couple of years the Operating Margin of LRN has grown nicely.
LRN has a Gross Margin of 39.20%. This is comparable to the rest of the industry: LRN outperforms 42.86% of its industry peers.
LRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.83% | ||
| PM (TTM) | 12.76% | ||
| GM | 39.2% |
OM growth 3Y23.39%
OM growth 5Y41.07%
PM growth 3Y23.52%
PM growth 5Y38.44%
GM growth 3Y3.53%
GM growth 5Y3.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LRN is creating value.
Compared to 1 year ago, LRN has more shares outstanding
Compared to 5 years ago, LRN has more shares outstanding
Compared to 1 year ago, LRN has an improved debt to assets ratio.
2.2 Solvency
LRN has an Altman-Z score of 5.00. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
LRN has a better Altman-Z score (5.00) than 90.91% of its industry peers.
LRN has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
LRN has a Debt to FCF ratio of 1.74. This is in the better half of the industry: LRN outperforms 79.22% of its industry peers.
LRN has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, LRN is in line with its industry, outperforming 50.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 5 |
ROIC/WACC2.09
WACC7.67%
2.3 Liquidity
LRN has a Current Ratio of 6.77. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (6.77) is better than 97.40% of its industry peers.
LRN has a Quick Ratio of 6.69. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LRN (6.69) is better than 97.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.77 | ||
| Quick Ratio | 6.69 |
3. Growth
3.1 Past
LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.82%, which is quite good.
The Earnings Per Share has been growing by 58.07% on average over the past years. This is a very strong growth
Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 17.25% in the last year.
The Revenue has been growing by 18.24% on average over the past years. This is quite good.
EPS 1Y (TTM)17.82%
EPS 3Y33.5%
EPS 5Y58.07%
EPS Q2Q%48.94%
Revenue 1Y (TTM)17.25%
Revenue growth 3Y12.56%
Revenue growth 5Y18.24%
Sales Q2Q%12.67%
3.2 Future
The Earnings Per Share is expected to grow by 12.74% on average over the next years. This is quite good.
Based on estimates for the next years, LRN will show a small growth in Revenue. The Revenue will grow by 4.21% on average per year.
EPS Next Y20.74%
EPS Next 2Y14.79%
EPS Next 3Y12.74%
EPS Next 5YN/A
Revenue Next Year5.96%
Revenue Next 2Y5.56%
Revenue Next 3Y5.59%
Revenue Next 5Y4.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.67 indicates a reasonable valuation of LRN.
Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, LRN is valued rather cheaply.
A Price/Forward Earnings ratio of 7.90 indicates a rather cheap valuation of LRN.
Based on the Price/Forward Earnings ratio, LRN is valued cheaper than 93.51% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (23.69), we can say LRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 7.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 92.21% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 92.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 4.27 |
4.3 Compensation for Growth
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.
LRN's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.17
EPS Next 2Y14.79%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
LRN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.68
+1.66 (+2.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners110.97%
Inst Owner Change0.25%
Ins Owners3.04%
Ins Owner Change4.54%
Market Cap2.75B
Revenue(TTM)2.48B
Net Income(TTM)315.86M
Analysts81.82
Price Target134.77 (115.01%)
Short Float %13.45%
Short Ratio2.95
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)-7.76%
Min EPS beat(2)-41.53%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-3.18%
Min EPS beat(4)-41.53%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)44.6%
EPS beat(12)10
Avg EPS beat(12)44.76%
EPS beat(16)13
Avg EPS beat(16)18.17%
Revenue beat(2)2
Avg Revenue beat(2)1.75%
Min Revenue beat(2)0.16%
Max Revenue beat(2)3.34%
Revenue beat(4)4
Avg Revenue beat(4)2.14%
Min Revenue beat(4)0.16%
Max Revenue beat(4)3.34%
Revenue beat(8)7
Avg Revenue beat(8)2.35%
Revenue beat(12)11
Avg Revenue beat(12)2.73%
Revenue beat(16)15
Avg Revenue beat(16)2.74%
PT rev (1m)-21.57%
PT rev (3m)-19.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.43%
EPS NY rev (1m)-8.28%
EPS NY rev (3m)-8.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-5.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.67 | ||
| Fwd PE | 7.9 | ||
| P/S | 1.11 | ||
| P/FCF | 8.81 | ||
| P/OCF | 7.25 | ||
| P/B | 1.8 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 4.27 |
EPS(TTM)6.48
EY10.34%
EPS(NY)7.93
Fwd EY12.65%
FCF(TTM)7.12
FCFY11.35%
OCF(TTM)8.64
OCFY13.79%
SpS56.43
BVpS34.82
TBVpS25.73
PEG (NY)0.47
PEG (5Y)0.17
Graham Number71.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.54% | ||
| ROE | 20.68% | ||
| ROCE | 21.12% | ||
| ROIC | 16.01% | ||
| ROICexc | 24.34% | ||
| ROICexgc | 34.29% | ||
| OM | 17.83% | ||
| PM (TTM) | 12.76% | ||
| GM | 39.2% | ||
| FCFM | 12.61% |
ROA(3y)10.13%
ROA(5y)8.29%
ROE(3y)16.74%
ROE(5y)14.46%
ROIC(3y)11.97%
ROIC(5y)10.27%
ROICexc(3y)20.97%
ROICexc(5y)16.99%
ROICexgc(3y)36.26%
ROICexgc(5y)30.39%
ROCE(3y)15.79%
ROCE(5y)13.55%
ROICexgc growth 3Y30.19%
ROICexgc growth 5Y48.22%
ROICexc growth 3Y36.36%
ROICexc growth 5Y54.51%
OM growth 3Y23.39%
OM growth 5Y41.07%
PM growth 3Y23.52%
PM growth 5Y38.44%
GM growth 3Y3.53%
GM growth 5Y3.28%
F-Score7
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 57.81% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 44.78 | ||
| Cash Conversion | 68.05% | ||
| Profit Quality | 98.82% | ||
| Current Ratio | 6.77 | ||
| Quick Ratio | 6.69 | ||
| Altman-Z | 5 |
F-Score7
WACC7.67%
ROIC/WACC2.09
Cap/Depr(3y)56.69%
Cap/Depr(5y)59.43%
Cap/Sales(3y)3.07%
Cap/Sales(5y)3.32%
Profit Quality(3y)114.14%
Profit Quality(5y)117.4%
High Growth Momentum
Growth
EPS 1Y (TTM)17.82%
EPS 3Y33.5%
EPS 5Y58.07%
EPS Q2Q%48.94%
EPS Next Y20.74%
EPS Next 2Y14.79%
EPS Next 3Y12.74%
EPS Next 5YN/A
Revenue 1Y (TTM)17.25%
Revenue growth 3Y12.56%
Revenue growth 5Y18.24%
Sales Q2Q%12.67%
Revenue Next Year5.96%
Revenue Next 2Y5.56%
Revenue Next 3Y5.59%
Revenue Next 5Y4.21%
EBIT growth 1Y50.26%
EBIT growth 3Y38.88%
EBIT growth 5Y66.8%
EBIT Next Year35.97%
EBIT Next 3Y19.3%
EBIT Next 5Y18.08%
FCF growth 1Y115.04%
FCF growth 3Y38.85%
FCF growth 5Y60.14%
OCF growth 1Y79.65%
OCF growth 3Y27.9%
OCF growth 5Y40.03%
STRIDE INC / LRN FAQ
What is the ChartMill fundamental rating of STRIDE INC (LRN) stock?
ChartMill assigns a fundamental rating of 7 / 10 to LRN.
What is the valuation status for LRN stock?
ChartMill assigns a valuation rating of 9 / 10 to STRIDE INC (LRN). This can be considered as Undervalued.
Can you provide the profitability details for STRIDE INC?
STRIDE INC (LRN) has a profitability rating of 9 / 10.
What is the valuation of STRIDE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STRIDE INC (LRN) is 9.67 and the Price/Book (PB) ratio is 1.8.
What is the financial health of STRIDE INC (LRN) stock?
The financial health rating of STRIDE INC (LRN) is 8 / 10.