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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LRN is growing strongly while it is still valued neutral. This is a good combination! 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.
In the past year LRN had a positive cash flow from operations.
Each year in the past 5 years LRN has been profitable.
LRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LRN has a Return On Assets of 13.03%. This is amongst the best in the industry. LRN outperforms 90.63% of its industry peers.
LRN has a better Return On Equity (20.46%) than 82.81% of its industry peers.
LRN has a better Return On Invested Capital (13.60%) than 89.06% of its industry peers.
LRN had an Average Return On Invested Capital over the past 3 years of 9.47%. This is below the industry average of 12.02%.
The 3 year average ROIC (9.47%) for LRN is below the current ROIC(13.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 20.46% | ||
| ROIC | 13.6% |
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 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's Operating Margin of 15.25% is fine compared to the rest of the industry. LRN outperforms 79.69% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.
LRN has a Gross Margin of 38.54%. This is comparable to the rest of the industry: LRN outperforms 40.63% of its industry peers.
LRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 12.3% | ||
| GM | 38.54% |
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.
The number of shares outstanding for LRN has been increased compared to 1 year ago.
The number of shares outstanding for LRN has been increased compared to 5 years ago.
LRN has a better debt/assets ratio than last year.
2.2 Solvency
LRN has an Altman-Z score of 7.56. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
LRN's Altman-Z score of 7.56 is amongst the best of the industry. LRN outperforms 92.19% of its industry peers.
The Debt to FCF ratio of LRN is 1.96, which is an excellent value as it means it would take LRN, only 1.96 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.35 indicates that LRN is not too dependend on debt financing.
LRN has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 7.56 |
ROIC/WACC1.32
WACC10.28%
2.3 Liquidity
LRN has a Current Ratio of 6.02. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN has a better Current ratio (6.02) than 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.
Looking at the Quick ratio, with a value of 5.93, LRN belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.02 | ||
| Quick Ratio | 5.93 |
3. Growth
3.1 Past
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.
The Earnings Per Share has been growing by 39.31% on average over the past years. This is a very strong growth
The Revenue has grown by 13.13% in the past year. This is quite good.
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)51.26%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%31.82%
Revenue 1Y (TTM)13.13%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%16.31%
3.2 Future
The Earnings Per Share is expected to grow by 21.45% on average over the next years. This is a very strong growth
Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 9.35% on average per year.
EPS Next Y43.68%
EPS Next 2Y25.82%
EPS Next 3Y21.45%
EPS Next 5YN/A
Revenue Next Year14.56%
Revenue Next 2Y10.88%
Revenue Next 3Y10.19%
Revenue Next 5Y9.35%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
LRN is valuated rather expensively with a Price/Earnings ratio of 22.41.
LRN's Price/Earnings is on the same level as the industry average.
LRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 18.16 indicates a rather expensive valuation of LRN.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than 71.88% of the companies in the same industry.
LRN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 18.16 |
4.2 Price Multiples
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.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.5 | ||
| EV/EBITDA | 12.67 |
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.
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.
PEG (NY)0.51
PEG (5Y)0.57
EPS Next 2Y25.82%
EPS Next 3Y21.45%
5. Dividend
5.1 Amount
No dividends for LRN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
134.24
-4.66 (-3.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners108.39%
Inst Owner Change1.9%
Ins Owners2.94%
Ins Owner Change0.11%
Market Cap5.85B
Analysts82.22
Price Target116.54 (-13.19%)
Short Float %11.23%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.43
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)167.41%
Min EPS beat(2)3.28%
Max EPS beat(2)331.54%
EPS beat(4)4
Avg EPS beat(4)89.1%
Min EPS beat(4)3.28%
Max EPS beat(4)331.54%
EPS beat(8)8
Avg EPS beat(8)67.46%
EPS beat(12)11
Avg EPS beat(12)23.16%
EPS beat(16)14
Avg EPS beat(16)24.03%
Revenue beat(2)2
Avg Revenue beat(2)5.17%
Min Revenue beat(2)2.13%
Max Revenue beat(2)8.2%
Revenue beat(4)4
Avg Revenue beat(4)3.15%
Min Revenue beat(4)0.58%
Max Revenue beat(4)8.2%
Revenue beat(8)7
Avg Revenue beat(8)2.96%
Revenue beat(12)11
Avg Revenue beat(12)2.91%
Revenue beat(16)15
Avg Revenue beat(16)3.18%
PT rev (1m)16.34%
PT rev (3m)32.85%
EPS NQ rev (1m)4.54%
EPS NQ rev (3m)16.92%
EPS NY rev (1m)1.93%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)3.18%
Revenue NQ rev (3m)5.62%
Revenue NY rev (1m)1.86%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 18.16 | ||
| P/S | 2.67 | ||
| P/FCF | 22.5 | ||
| P/OCF | 18.15 | ||
| P/B | 4.44 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 12.67 |
EPS(TTM)5.99
EY4.46%
EPS(NY)7.39
Fwd EY5.51%
FCF(TTM)5.97
FCFY4.44%
OCF(TTM)7.4
OCFY5.51%
SpS50.36
BVpS30.27
TBVpS20.33
PEG (NY)0.51
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 20.46% | ||
| ROCE | 18.17% | ||
| ROIC | 13.6% | ||
| ROICexc | 22.29% | ||
| ROICexgc | 36.28% | ||
| OM | 15.25% | ||
| PM (TTM) | 12.3% | ||
| GM | 38.54% | ||
| FCFM | 11.84% |
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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 56.31% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 41.42 | ||
| Cash Conversion | 72.36% | ||
| Profit Quality | 96.31% | ||
| Current Ratio | 6.02 | ||
| Quick Ratio | 5.93 | ||
| Altman-Z | 7.56 |
F-Score7
WACC10.28%
ROIC/WACC1.32
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)51.26%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%31.82%
EPS Next Y43.68%
EPS Next 2Y25.82%
EPS Next 3Y21.45%
EPS Next 5YN/A
Revenue 1Y (TTM)13.13%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%16.31%
Revenue Next Year14.56%
Revenue Next 2Y10.88%
Revenue Next 3Y10.19%
Revenue Next 5Y9.35%
EBIT growth 1Y56.46%
EBIT growth 3Y31.23%
EBIT growth 5Y40.56%
EBIT Next Year94.45%
EBIT Next 3Y33.21%
EBIT Next 5Y24.38%
FCF growth 1Y56.07%
FCF growth 3Y38.43%
FCF growth 5Y18.44%
OCF growth 1Y34.37%
OCF growth 3Y27.61%
OCF growth 5Y14.51%