84.9 USD
-0.72 (-0.84%)
84.9 USD
0 (0%)
Overall STRA gets a fundamental rating of 6 out of 10. We evaluated STRA against 76 industry peers in the Diversified Consumer Services industry. STRA has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on STRA. STRA also has an excellent dividend rating. With these ratings, STRA could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year STRA was profitable.
- STRA had a positive operating cash flow in the past year.
- STRA had positive earnings in each of the past 5 years.
- STRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.40%, STRA is in the better half of the industry, outperforming 67.11% of the companies in the same industry.
- STRA has a Return On Equity of 6.89%. This is comparable to the rest of the industry: STRA outperforms 57.89% of its industry peers.
- STRA has a better Return On Invested Capital (6.92%) than 69.74% of its industry peers.
- STRA had an Average Return On Invested Capital over the past 3 years of 4.24%. This is significantly below the industry average of 10.15%.
- The last Return On Invested Capital (6.92%) for STRA is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 6.89% | ||
| ROIC | 6.92% |
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 has a Profit Margin of 9.08%. This is in the better half of the industry: STRA outperforms 69.74% of its industry peers.
- STRA's Profit Margin has improved in the last couple of years.
- STRA's Operating Margin of 14.48% is fine compared to the rest of the industry. STRA outperforms 75.00% of its industry peers.
- STRA's Operating Margin has been stable in the last couple of years.
- STRA has a Gross Margin (47.95%) which 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 | 14.48% | ||
| PM (TTM) | 9.08% | ||
| GM | 47.95% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRA is destroying value.
- Compared to 1 year ago, STRA has more shares outstanding
- 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 3.72 indicates that STRA is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.72, STRA belongs to the top of the industry, outperforming 80.26% 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 | 3.72 |
ROIC/WACC0.79
WACC8.8%
2.3 Liquidity
- STRA has a Current Ratio of 1.22. 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 Current ratio (1.22) which is in line with its industry peers.
- A Quick Ratio of 1.22 indicates that STRA should not have too much problems paying its short term obligations.
- STRA has a Quick ratio (1.22) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.33% over the past year.
- 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 3.74%.
- The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)8.33%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%40.52%
Revenue 1Y (TTM)3.74%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
3.2 Future
- The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
- STRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y22.87%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y3.7%
Revenue Next 3Y4.08%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- STRA is valuated correctly with a Price/Earnings ratio of 14.84.
- Compared to the rest of the industry, the Price/Earnings ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 73.68% of the companies listed in the same industry.
- STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 12.95 indicates a correct valuation of STRA.
- STRA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STRA is cheaper than 80.26% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. STRA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
- STRA's 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 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
- STRA has a Yearly Dividend Yield of 2.78%.
- STRA's Dividend Yield is rather good when compared to the industry average which is at 0.36. STRA pays more dividend than 97.37% of the companies in the same industry.
- STRA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
- STRA pays out 50.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
- STRA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.94%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
STRATEGIC EDUCATION INC / STRA FAQ
What is the ChartMill fundamental rating of STRATEGIC EDUCATION INC (STRA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to STRA.
What is the valuation status for STRA stock?
ChartMill assigns a valuation rating of 7 / 10 to STRATEGIC EDUCATION INC (STRA). This can be considered as Undervalued.
How profitable is STRATEGIC EDUCATION INC (STRA) stock?
STRATEGIC EDUCATION INC (STRA) has a profitability rating of 6 / 10.
What is the valuation of STRATEGIC EDUCATION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STRATEGIC EDUCATION INC (STRA) is 14.84 and the Price/Book (PB) ratio is 1.2.
Can you provide the financial health for STRA stock?
The financial health rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10.