STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA - Nasdaq - US86272C1036 - Common Stock
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. STRA is not valued too expensively and it also shows a decent growth rate. STRA also has an excellent dividend rating. This makes STRA very considerable 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.
In the past 5 years STRA has always been profitable.
STRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STRA's Return On Assets of 5.78% is fine compared to the rest of the industry. STRA outperforms 78.13% of its industry peers.
STRA has a Return On Equity (7.37%) which is in line with its industry peers.
STRA has a Return On Invested Capital of 6.18%. This is in the better half of the industry: STRA outperforms 73.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 11.87%.
The 3 year average ROIC (3.40%) for STRA is below the current ROIC(6.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 7.37% | ||
| ROIC | 6.18% |
ROA(3y)2.61%
ROA(5y)3.23%
ROE(3y)3.43%
ROE(5y)4.15%
ROIC(3y)3.4%
ROIC(5y)4.03%
1.3 Margins
STRA's Profit Margin of 10.44% is fine compared to the rest of the industry. STRA outperforms 76.56% of its industry peers.
In the last couple of years the Profit Margin of STRA has declined.
With a decent Operating Margin value of 14.23%, STRA is doing good in the industry, outperforming 78.13% of the companies in the same industry.
STRA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 47.38%, STRA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 | 14.23% | ||
| PM (TTM) | 10.44% | ||
| GM | 47.38% |
OM growth 3Y-8.87%
OM growth 5Y9.24%
PM growth 3Y-9.81%
PM growth 5YN/A
GM growth 3Y-2.29%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRA is destroying value.
The number of shares outstanding for STRA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, STRA has more shares outstanding
STRA has a better debt/assets ratio than last year.
2.2 Solvency
STRA has an Altman-Z score of 4.05. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
STRA's Altman-Z score of 4.05 is amongst the best of the industry. STRA outperforms 84.38% of its industry peers.
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 | 4.05 |
ROIC/WACC0.54
WACC11.38%
2.3 Liquidity
A Current Ratio of 1.34 indicates that STRA should not have too much problems paying its short term obligations.
STRA has a Current ratio (1.34) which is in line with its industry peers.
STRA has a Quick Ratio of 1.34. 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 1.34. This is comparable to the rest of the industry: STRA outperforms 51.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 87.90% over the past year.
Measured over the past years, STRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.13% on average per year.
Looking at the last year, STRA shows a quite strong growth in Revenue. The Revenue has grown by 10.10% in the last year.
The Revenue has been growing by 12.30% on average over the past years. This is quite good.
EPS 1Y (TTM)87.9%
EPS 3Y-18.05%
EPS 5Y-4.13%
EPS Q2Q%19.59%
Revenue 1Y (TTM)10.1%
Revenue growth 3Y3.3%
Revenue growth 5Y12.3%
Sales Q2Q%7%
3.2 Future
Based on estimates for the next years, STRA will show a very strong growth in Earnings Per Share. The EPS will grow by 23.13% on average per year.
Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
EPS Next Y33.07%
EPS Next 2Y24.27%
EPS Next 3Y23.13%
EPS Next 5YN/A
Revenue Next Year8.52%
Revenue Next 2Y6.73%
Revenue Next 3Y6.09%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.33, which indicates a rather expensive current valuation of STRA.
Based on the Price/Earnings ratio, STRA is valued a bit cheaper than 68.75% of the companies in the same industry.
STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
STRA is valuated correctly with a Price/Forward Earnings ratio of 16.89.
Based on the Price/Forward Earnings ratio, STRA is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STRA to the average of the S&P500 Index (24.44), we can say STRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 16.89 |
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 75.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.47 | ||
| EV/EBITDA | 9.83 |
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.
STRA has a very decent profitability rating, which may justify a higher PE ratio.
STRA's earnings are expected to grow with 23.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y24.27%
EPS Next 3Y23.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.47%, 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 4.23. STRA pays more dividend than 92.19% of the companies in the same industry.
STRA's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
On average, the dividend of STRA grows each year by 7.34%, which is quite nice.
STRA has paid a dividend for at least 10 years, which is 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)7.34%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
STRA pays out 46.60% of its income as dividend. 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.
DP46.6%
EPS Next 2Y24.27%
EPS Next 3Y23.13%
STRATEGIC EDUCATION INC
NASDAQ:STRA (1/22/2025, 11:49:29 AM)
96.79
-0.42 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change-0.93%
Ins Owners2.92%
Ins Owner Change0.27%
Market Cap2.38B
Analysts84.44
Price Target124.1 (28.22%)
Short Float %1.61%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend2.41
Dividend Growth(5Y)7.34%
DP46.6%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.69%
Min EPS beat(2)9.8%
Max EPS beat(2)41.57%
EPS beat(4)4
Avg EPS beat(4)39.48%
Min EPS beat(4)9.8%
Max EPS beat(4)83.41%
EPS beat(8)7
Avg EPS beat(8)22.43%
EPS beat(12)9
Avg EPS beat(12)15.7%
EPS beat(16)10
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.65%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-0.65%
Max Revenue beat(4)3.99%
Revenue beat(8)1
Avg Revenue beat(8)-0.52%
Revenue beat(12)1
Avg Revenue beat(12)-1.03%
Revenue beat(16)1
Avg Revenue beat(16)-1.89%
PT rev (1m)0%
PT rev (3m)-9.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.4%
EPS NY rev (1m)0%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.33 | ||
| Fwd PE | 16.89 | ||
| P/S | 1.96 | ||
| P/FCF | 16.47 | ||
| P/OCF | 12.97 | ||
| P/B | 1.39 | ||
| P/tB | 11.64 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)5.28
EY5.46%
EPS(NY)5.73
Fwd EY5.92%
FCF(TTM)5.88
FCFY6.07%
OCF(TTM)7.46
OCFY7.71%
SpS49.29
BVpS69.87
TBVpS8.31
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 7.37% | ||
| ROCE | 9.06% | ||
| ROIC | 6.18% | ||
| ROICexc | 7% | ||
| ROICexgc | 70.34% | ||
| OM | 14.23% | ||
| PM (TTM) | 10.44% | ||
| GM | 47.38% | ||
| FCFM | 11.92% |
ROA(3y)2.61%
ROA(5y)3.23%
ROE(3y)3.43%
ROE(5y)4.15%
ROIC(3y)3.4%
ROIC(5y)4.03%
ROICexc(3y)3.86%
ROICexc(5y)4.82%
ROICexgc(3y)29.65%
ROICexgc(5y)35.44%
ROCE(3y)4.99%
ROCE(5y)5.91%
ROICexcg growth 3Y1.52%
ROICexcg growth 5Y11.48%
ROICexc growth 3Y-2.44%
ROICexc growth 5Y14.08%
OM growth 3Y-8.87%
OM growth 5Y9.24%
PM growth 3Y-9.81%
PM growth 5YN/A
GM growth 3Y-2.29%
GM growth 5Y-0.63%
F-Score9
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 85.79% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.19% | ||
| Profit Quality | 114.14% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 4.05 |
F-Score9
WACC11.38%
ROIC/WACC0.54
Cap/Depr(3y)60.23%
Cap/Depr(5y)52.09%
Cap/Sales(3y)3.89%
Cap/Sales(5y)4.02%
Profit Quality(3y)176.78%
Profit Quality(5y)168.63%
High Growth Momentum
Growth
EPS 1Y (TTM)87.9%
EPS 3Y-18.05%
EPS 5Y-4.13%
EPS Q2Q%19.59%
EPS Next Y33.07%
EPS Next 2Y24.27%
EPS Next 3Y23.13%
EPS Next 5YN/A
Revenue 1Y (TTM)10.1%
Revenue growth 3Y3.3%
Revenue growth 5Y12.3%
Sales Q2Q%7%
Revenue Next Year8.52%
Revenue Next 2Y6.73%
Revenue Next 3Y6.09%
Revenue Next 5YN/A
EBIT growth 1Y111.71%
EBIT growth 3Y-5.86%
EBIT growth 5Y22.68%
EBIT Next Year107.21%
EBIT Next 3Y39.44%
EBIT Next 5YN/A
FCF growth 1Y50.84%
FCF growth 3Y-5.86%
FCF growth 5Y32.82%
OCF growth 1Y27.32%
OCF growth 3Y-6.42%
OCF growth 5Y20.09%