STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA - Nasdaq - US86272C1036 - Common Stock - Currency: USD
Taking everything into account, STRA scores 6 out of 10 in our fundamental rating. STRA was compared to 71 industry peers in the Diversified Consumer Services industry. STRA has an excellent profitability rating, but there are some minor concerns on its financial health. STRA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
STRA had positive earnings in the past year.
STRA had a positive operating cash flow in the past year.
In the past 5 years STRA has always been profitable.
Each year in the past 5 years STRA had a positive operating cash flow.
1.2 Ratios
STRA's Return On Assets of 5.43% is fine compared to the rest of the industry. STRA outperforms 69.01% of its industry peers.
With a decent Return On Equity value of 6.86%, STRA is doing good in the industry, outperforming 61.97% of the companies in the same industry.
The Return On Invested Capital of STRA (6.25%) is better than 73.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STRA is significantly below the industry average of 10.64%.
The 3 year average ROIC (4.24%) for STRA is below the current ROIC(6.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 6.86% | ||
| ROIC | 6.25% |
ROA(3y)3.65%
ROA(5y)3.42%
ROE(3y)4.62%
ROE(5y)4.4%
ROIC(3y)4.24%
ROIC(5y)4.18%
1.3 Margins
STRA's Profit Margin of 9.14% is fine compared to the rest of the industry. STRA outperforms 70.42% of its industry peers.
In the last couple of years the Profit Margin of STRA has grown nicely.
Looking at the Operating Margin, with a value of 13.23%, STRA is in the better half of the industry, outperforming 73.24% of the companies in the same industry.
STRA's Operating Margin has been stable in the last couple of years.
The Gross Margin of STRA (47.21%) is comparable to the rest of the industry.
STRA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.23% | ||
| PM (TTM) | 9.14% | ||
| GM | 47.21% |
OM growth 3Y9.44%
OM growth 5Y-0.54%
PM growth 3Y23.79%
PM growth 5Y2.58%
GM growth 3Y0.31%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
STRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
STRA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for STRA has been increased compared to 5 years ago.
STRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.85 indicates that STRA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.85, STRA is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
There is no outstanding debt for STRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.7
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STRA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, STRA is in line with its industry, outperforming 53.52% of the companies in the same industry.
STRA has a Quick Ratio of 1.27. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
STRA has a Quick ratio of 1.27. This is comparable to the rest of the industry: STRA outperforms 54.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.48%, which is quite good.
STRA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.07% yearly.
STRA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.72%.
STRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.12% yearly.
EPS 1Y (TTM)10.48%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%17.12%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.6%
3.2 Future
STRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.25% yearly.
The Revenue is expected to grow by 4.35% on average over the next years.
EPS Next Y17.99%
EPS Next 2Y18.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.69%
Revenue Next 2Y4.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
STRA is valuated correctly with a Price/Earnings ratio of 16.49.
Based on the Price/Earnings ratio, STRA is valued a bit cheaper than 78.87% of the companies in the same industry.
STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.25 indicates a correct valuation of STRA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRA indicates a rather cheap valuation: STRA is cheaper than 84.51% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, STRA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 12.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 8.65 |
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 decent profitability rating of STRA may justify a higher PE ratio.
STRA's earnings are expected to grow with 18.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)N/A
EPS Next 2Y18.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.97, STRA pays a better dividend. On top of this STRA pays more dividend than 97.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, STRA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of STRA has a limited annual growth rate of 2.49%.
STRA has paid a dividend for at least 10 years, which is a reliable track record.
STRA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.49%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
52.37% of the earnings are spent on dividend by STRA. This is a bit on the high side, but may be sustainable.
The dividend of STRA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.37%
EPS Next 2Y18.25%
EPS Next 3YN/A
83.45
-0.65 (-0.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.54%
Inst Owner Change2.78%
Ins Owners3.03%
Ins Owner Change3.86%
Market Cap2.02B
Analysts84.44
Price Target104.72 (25.49%)
Short Float %2.12%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP52.37%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18%
Min EPS beat(2)0.41%
Max EPS beat(2)35.59%
EPS beat(4)4
Avg EPS beat(4)21.84%
Min EPS beat(4)0.41%
Max EPS beat(4)41.57%
EPS beat(8)8
Avg EPS beat(8)28.48%
EPS beat(12)10
Avg EPS beat(12)19.54%
EPS beat(16)12
Avg EPS beat(16)12.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-3.12%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-0.32%
Revenue beat(12)1
Avg Revenue beat(12)-0.99%
Revenue beat(16)1
Avg Revenue beat(16)-1.59%
PT rev (1m)0%
PT rev (3m)-8.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 12.25 | ||
| P/S | 1.63 | ||
| P/FCF | 17.14 | ||
| P/OCF | 12.65 | ||
| P/B | 1.23 | ||
| P/tB | 10.72 | ||
| EV/EBITDA | 8.65 |
EPS(TTM)5.06
EY6.06%
EPS(NY)6.81
Fwd EY8.16%
FCF(TTM)4.87
FCFY5.84%
OCF(TTM)6.6
OCFY7.9%
SpS51.05
BVpS68.02
TBVpS7.79
PEG (NY)0.92
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 6.86% | ||
| ROCE | 8.99% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 64.11% | ||
| OM | 13.23% | ||
| PM (TTM) | 9.14% | ||
| GM | 47.21% | ||
| FCFM | 9.54% |
ROA(3y)3.65%
ROA(5y)3.42%
ROE(3y)4.62%
ROE(5y)4.4%
ROIC(3y)4.24%
ROIC(5y)4.18%
ROICexc(3y)4.74%
ROICexc(5y)4.68%
ROICexgc(3y)39.25%
ROICexgc(5y)36.61%
ROCE(3y)6.09%
ROCE(5y)6%
ROICexcg growth 3Y24.96%
ROICexcg growth 5Y0.87%
ROICexc growth 3Y16.27%
ROICexc growth 5Y-3.19%
OM growth 3Y9.44%
OM growth 5Y-0.54%
PM growth 3Y23.79%
PM growth 5Y2.58%
GM growth 3Y0.31%
GM growth 5Y-0.05%
F-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 93.72% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.75% | ||
| Profit Quality | 104.37% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.85 |
F-Score7
WACC8.91%
ROIC/WACC0.7
Cap/Depr(3y)74.79%
Cap/Depr(5y)63%
Cap/Sales(3y)3.55%
Cap/Sales(5y)3.91%
Profit Quality(3y)135.55%
Profit Quality(5y)151.19%
High Growth Momentum
Growth
EPS 1Y (TTM)10.48%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%17.12%
EPS Next Y17.99%
EPS Next 2Y18.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.72%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.6%
Revenue Next Year3.69%
Revenue Next 2Y4.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.11%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year61.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.04%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y52.2%
OCF growth 3Y-2.11%
OCF growth 5Y-3.48%