STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
USA - NASDAQ:STRA - US86272C1036 - Common Stock
77.82 USD
+0.59 (+0.76%)
77.82 USD
0 (0%)
Taking everything into account, STRA scores 6 out of 10 in our fundamental rating. STRA was compared to 79 industry peers in the Diversified Consumer Services industry. While STRA has a great health rating, its profitability is only average at the moment. STRA has a decent growth rate and is not valued too expensively. STRA also has an excellent dividend rating. These ratings could make STRA a good candidate for 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
STRA has a better Return On Assets (5.51%) than 68.35% of its industry peers.
Looking at the Return On Equity, with a value of 6.91%, STRA is in line with its industry, outperforming 59.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.35%, STRA is in the better half of the industry, outperforming 69.62% of the companies in the same industry.
STRA had an Average Return On Invested Capital over the past 3 years of 4.24%. This is significantly below the industry average of 10.09%.
The 3 year average ROIC (4.24%) for STRA is below the current ROIC(6.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 6.91% | ||
| ROIC | 6.35% |
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
With a decent Profit Margin value of 9.27%, STRA is doing good in the industry, outperforming 70.89% of the companies in the same industry.
STRA's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.50%, STRA is doing good in the industry, outperforming 70.89% of the companies in the same industry.
STRA's Operating Margin has been stable in the last couple of years.
STRA's Gross Margin of 47.36% is in line compared to the rest of the industry. STRA outperforms 50.63% of its industry peers.
In the last couple of years the Gross Margin of STRA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.5% | ||
| PM (TTM) | 9.27% | ||
| GM | 47.36% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRA is destroying value.
STRA has more shares outstanding than it did 1 year ago.
STRA has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
An Altman-Z score of 3.66 indicates that STRA is not in any danger for bankruptcy at the moment.
STRA's Altman-Z score of 3.66 is amongst the best of the industry. STRA outperforms 82.28% of its industry peers.
STRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.66 |
ROIC/WACC0.73
WACC8.68%
2.3 Liquidity
STRA has a Current Ratio of 1.26. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.26, STRA is in line with its industry, outperforming 54.43% of the companies in the same industry.
STRA has a Quick Ratio of 1.26. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
STRA's Quick ratio of 1.26 is in line compared to the rest of the industry. STRA outperforms 58.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
The Earnings Per Share has been decreasing by -6.07% on average over the past years.
STRA shows a small growth in Revenue. In the last year, the Revenue has grown by 7.68%.
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)7.68%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
3.2 Future
The Earnings Per Share is expected to grow by 16.66% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y16.38%
EPS Next 2Y15.51%
EPS Next 3Y16.66%
EPS Next 5YN/A
Revenue Next Year3.21%
Revenue Next 2Y3.66%
Revenue Next 3Y3.53%
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
A Price/Earnings ratio of 13.60 indicates a correct valuation of STRA.
Compared to the rest of the industry, the Price/Earnings ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 73.42% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. STRA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.98, which indicates a very decent valuation of STRA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 74.68% of the companies listed in the same industry.
STRA is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 72.15% of the companies listed in the same industry.
73.42% of the companies in the same industry are more expensive than STRA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.94 | ||
| EV/EBITDA | 7.74 |
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.
A more expensive valuation may be justified as STRA's earnings are expected to grow with 16.66% in the coming years.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y15.51%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, STRA has a reasonable but not impressive dividend return.
STRA's Dividend Yield is rather good when compared to the industry average which is at 2.04. STRA pays more dividend than 97.47% of the companies in the same industry.
STRA's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of STRA has a limited annual growth rate of 2.49%.
STRA has been paying a dividend for at least 10 years, so it has a reliable track record.
As STRA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.49%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
50.95% 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.
DP50.95%
EPS Next 2Y15.51%
EPS Next 3Y16.66%
77.82
+0.59 (+0.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change-1.54%
Ins Owners3.06%
Ins Owner Change-0.08%
Market Cap1.86B
Revenue(TTM)1.22B
Net Income(TTM)115.16M
Analysts84.44
Price Target103.36 (32.82%)
Short Float %2.85%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP50.95%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.78%
Min EPS beat(2)3.97%
Max EPS beat(2)35.59%
EPS beat(4)4
Avg EPS beat(4)20.38%
Min EPS beat(4)0.41%
Max EPS beat(4)41.57%
EPS beat(8)8
Avg EPS beat(8)26.91%
EPS beat(12)11
Avg EPS beat(12)20.19%
EPS beat(16)12
Avg EPS beat(16)12.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-0.61%
Revenue beat(12)1
Avg Revenue beat(12)-0.96%
Revenue beat(16)1
Avg Revenue beat(16)-1.59%
PT rev (1m)0%
PT rev (3m)2.01%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.98 | ||
| P/S | 1.5 | ||
| P/FCF | 14.94 | ||
| P/OCF | 11.19 | ||
| P/B | 1.12 | ||
| P/tB | 9.92 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)5.72
EY7.35%
EPS(NY)6.5
Fwd EY8.35%
FCF(TTM)5.21
FCFY6.69%
OCF(TTM)6.96
OCFY8.94%
SpS51.99
BVpS69.74
TBVpS7.84
PEG (NY)0.83
PEG (5Y)N/A
Graham Number94.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 6.91% | ||
| ROCE | 9.13% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.98% | ||
| ROICexgc | 60.51% | ||
| OM | 13.5% | ||
| PM (TTM) | 9.27% | ||
| GM | 47.36% | ||
| FCFM | 10.02% |
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%
ROICexgc growth 3Y24.96%
ROICexgc 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-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.18% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.02% | ||
| Profit Quality | 108.07% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.66 |
F-Score8
WACC8.68%
ROIC/WACC0.73
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)8.33%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%40.52%
EPS Next Y16.38%
EPS Next 2Y15.51%
EPS Next 3Y16.66%
EPS Next 5YN/A
Revenue 1Y (TTM)7.68%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
Revenue Next Year3.21%
Revenue Next 2Y3.66%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
EBIT growth 1Y2.02%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year62.19%
EBIT Next 3Y27.89%
EBIT Next 5YN/A
FCF growth 1Y160.37%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y93.1%
OCF growth 3Y-2.11%
OCF growth 5Y-3.48%
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 of STRATEGIC EDUCATION INC (STRA) stock?
ChartMill assigns a valuation rating of 6 / 10 to STRATEGIC EDUCATION INC (STRA). This can be considered as Fairly Valued.
How profitable is STRATEGIC EDUCATION INC (STRA) stock?
STRATEGIC EDUCATION INC (STRA) has a profitability rating of 6 / 10.
What is the expected EPS growth for STRATEGIC EDUCATION INC (STRA) stock?
The Earnings per Share (EPS) of STRATEGIC EDUCATION INC (STRA) is expected to grow by 16.38% in the next year.
Can you provide the dividend sustainability for STRA stock?
The dividend rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10 and the dividend payout ratio is 50.95%.