STRIDE INC (LRN)
US86333M1080 - Common Stock
LRN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 67 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make LRN suitable 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.
In the past 5 years LRN has always been profitable.
In the past 5 years LRN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 12.18%, LRN belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
LRN has a better Return On Equity (19.78%) than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.62%, LRN belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LRN is below the industry average of 12.41%.
The last Return On Invested Capital (12.62%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 19.78% | ||
| ROIC | 12.62% |
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
LRN has a Profit Margin of 11.38%. This is amongst the best in the industry. LRN outperforms 81.54% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
The Operating Margin of LRN (13.91%) is better than 75.38% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.
LRN has a Gross Margin of 38.21%. This is in the lower half of the industry: LRN underperforms 63.08% of its industry peers.
LRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | 11.38% | ||
| GM | 38.21% |
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.
LRN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LRN has been reduced compared to a year ago.
2.2 Solvency
LRN has an Altman-Z score of 6.29. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
LRN has a better Altman-Z score (6.29) than 86.15% of its industry peers.
The Debt to FCF ratio of LRN is 2.38, which is a good value as it means it would take LRN, 2.38 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LRN (2.38) is better than 73.85% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that LRN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.38, LRN is doing worse than 60.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for LRN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.38 | ||
| Altman-Z | 6.29 |
ROIC/WACC1.49
WACC8.46%
2.3 Liquidity
LRN has a Current Ratio of 5.60. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (5.60) is better than 93.85% of its industry peers.
LRN has a Quick Ratio of 5.50. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LRN (5.50) is better than 93.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.6 | ||
| Quick Ratio | 5.5 |
3. Growth
3.1 Past
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.
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 11.55% in the last year.
The Revenue has been growing by 14.97% on average over the past years. This is quite good.
EPS 1Y (TTM)52.35%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%754.55%
Revenue 1Y (TTM)11.55%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%14.77%
3.2 Future
The Earnings Per Share is expected to grow by 19.89% on average over the next years. This is quite good.
LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.
EPS Next Y41.1%
EPS Next 2Y25.31%
EPS Next 3Y19.89%
EPS Next 5YN/A
Revenue Next Year12.47%
Revenue Next 2Y10.37%
Revenue Next 3Y10.57%
Revenue Next 5Y8.7%
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
With a Price/Earnings ratio of 19.13, LRN is valued on the expensive side.
Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (27.73), we can say LRN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.35, the valuation of LRN can be described as correct.
LRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. LRN is cheaper than 81.54% of the companies in the same industry.
LRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 14.35 |
4.2 Price Multiples
72.31% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
64.62% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.65 | ||
| EV/EBITDA | 10.91 |
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.
LRN's earnings are expected to grow with 19.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.49
EPS Next 2Y25.31%
EPS Next 3Y19.89%
5. Dividend
5.1 Amount
No dividends for LRN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STRIDE INC
NYSE:LRN (12/20/2024, 8:22:53 PM)
After market: 105.213 0 (0%)105.21
-0.87 (-0.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners108.46%
Inst Owner Change4.54%
Ins Owners9.6%
Ins Owner Change3.24%
Market Cap4.59B
Analysts80
Price Target97.1 (-7.71%)
Short Float %12.83%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)171.09%
Min EPS beat(2)10.63%
Max EPS beat(2)331.54%
EPS beat(4)4
Avg EPS beat(4)92.38%
Min EPS beat(4)10.63%
Max EPS beat(4)331.54%
EPS beat(8)8
Avg EPS beat(8)68.73%
EPS beat(12)11
Avg EPS beat(12)25.29%
EPS beat(16)14
Avg EPS beat(16)25.19%
Revenue beat(2)2
Avg Revenue beat(2)4.39%
Min Revenue beat(2)0.58%
Max Revenue beat(2)8.2%
Revenue beat(4)3
Avg Revenue beat(4)2.57%
Min Revenue beat(4)-0.2%
Max Revenue beat(4)8.2%
Revenue beat(8)7
Avg Revenue beat(8)3.02%
Revenue beat(12)11
Avg Revenue beat(12)2.95%
Revenue beat(16)15
Avg Revenue beat(16)3.19%
PT rev (1m)10.7%
PT rev (3m)10.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.06%
EPS NY rev (1m)0%
EPS NY rev (3m)31.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 14.35 | ||
| P/S | 2.17 | ||
| P/FCF | 21.65 | ||
| P/OCF | 16.85 | ||
| P/B | 3.78 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)5.5
EY5.23%
EPS(NY)7.33
Fwd EY6.97%
FCF(TTM)4.86
FCFY4.62%
OCF(TTM)6.24
OCFY5.93%
SpS48.43
BVpS27.86
TBVpS17.89
PEG (NY)0.47
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.18% | ||
| ROE | 19.78% | ||
| ROCE | 16.86% | ||
| ROIC | 12.62% | ||
| ROICexc | 18.02% | ||
| ROICexgc | 27.99% | ||
| OM | 13.91% | ||
| PM (TTM) | 11.38% | ||
| GM | 38.21% | ||
| FCFM | 10.04% |
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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.38 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 54.85% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 37.66 | ||
| Cash Conversion | 67.45% | ||
| Profit Quality | 88.21% | ||
| Current Ratio | 5.6 | ||
| Quick Ratio | 5.5 | ||
| Altman-Z | 6.29 |
F-Score7
WACC8.46%
ROIC/WACC1.49
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)52.35%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%754.55%
EPS Next Y41.1%
EPS Next 2Y25.31%
EPS Next 3Y19.89%
EPS Next 5YN/A
Revenue 1Y (TTM)11.55%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%14.77%
Revenue Next Year12.47%
Revenue Next 2Y10.37%
Revenue Next 3Y10.57%
Revenue Next 5Y8.7%
EBIT growth 1Y48.64%
EBIT growth 3Y31.23%
EBIT growth 5Y40.56%
EBIT Next Year84.44%
EBIT Next 3Y32.14%
EBIT Next 5Y23.65%
FCF growth 1Y69.9%
FCF growth 3Y38.43%
FCF growth 5Y18.44%
OCF growth 1Y39.36%
OCF growth 3Y27.61%
OCF growth 5Y14.51%