Overall LRN gets a fundamental rating of 7 out of 10. We evaluated LRN against 76 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 valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, LRN could be worth investigating further for value and quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
LRN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

LRN's Return On Assets of 13.83% is amongst the best of the industry. LRN outperforms 88.16% of its industry peers.
LRN's Return On Equity of 20.61% is amongst the best of the industry. LRN outperforms 85.53% of its industry peers.
LRN has a better Return On Invested Capital (16.82%) than 93.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LRN is in line with the industry average of 10.17%.
The last Return On Invested Capital (16.82%) for LRN is above the 3 year average (11.97%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	13.83%
ROE	20.61%
ROIC	16.82%

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

Looking at the Profit Margin, with a value of 12.66%, LRN is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
LRN's Profit Margin has improved in the last couple of years.
The Operating Margin of LRN (18.38%) is better than 80.26% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.
LRN has a Gross Margin (39.30%) which is in line with its industry peers.
In the last couple of years the Gross Margin of LRN has grown nicely.

		Industry Rank	Sector Rank
OM	18.38%
PM (TTM)	12.66%
GM	39.3%

OM growth 3Y23.39%

OM growth 5Y41.07%

PM growth 3Y23.52%

PM growth 5Y38.44%

GM growth 3Y3.53%

GM growth 5Y3.28%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for LRN has been increased compared to 1 year ago.
Compared to 5 years ago, LRN has more shares outstanding
The debt/assets ratio for LRN has been reduced compared to a year ago.

2.2 Solvency

LRN has an Altman-Z score of 6.02. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.02, LRN belongs to the top of the industry, outperforming 93.42% of the companies in the same industry.
LRN has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as LRN would need 3.02 years to pay back of all of its debts.
The Debt to FCF ratio of LRN (3.02) is better than 76.32% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that LRN is not too dependend on debt financing.
LRN has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: LRN outperforms 52.63% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	3.02
Altman-Z	6.02

ROIC/WACC2.1

WACC8.03%

2.3 Liquidity

LRN has a Current Ratio of 7.27. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN has a better Current ratio (7.27) than 97.37% of its industry peers.
A Quick Ratio of 7.19 indicates that LRN has no problem at all paying its short term obligations.
LRN has a better Quick ratio (7.19) than 97.37% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	7.27
Quick Ratio	7.19

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.03% over the past year.
LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.07% yearly.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.86%.
The Revenue has been growing by 18.24% on average over the past years. This is quite good.

EPS 1Y (TTM)16.03%

EPS 3Y33.5%

EPS 5Y58.07%

EPS Q2Q%23.15%

Revenue 1Y (TTM)14.86%

Revenue growth 3Y12.56%

Revenue growth 5Y18.24%

Sales Q2Q%7.5%

3.2 Future

LRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.74% yearly.
The Revenue is expected to grow by 4.21% on average over the next years.

EPS Next Y26.61%

EPS Next 2Y17.44%

EPS Next 3Y12.74%

EPS Next 5YN/A

Revenue Next Year5.8%

Revenue Next 2Y5.3%

Revenue Next 3Y4.99%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.17, LRN is valued correctly.
80.26% of the companies in the same industry are more expensive than LRN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.30. LRN is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.19, which indicates a very decent valuation of LRN.
Based on the Price/Forward Earnings ratio, LRN is valued cheaper than 88.16% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, LRN is valued rather cheaply.

		Industry Rank	Sector Rank
PE	12.17
Fwd PE	10.19

4.2 Price Multiples

81.58% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 69.74% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	20.68
EV/EBITDA	6.01

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.
LRN's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.