83.32 USD
-0.07 (-0.08%)
83.32 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to STRA. STRA was compared to 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. STRA has a correct valuation and a medium growth rate. Finally STRA also has an excellent dividend rating. With these ratings, STRA could be worth investigating further for dividend investing!.
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.
STRA had positive earnings in each of the past 5 years.
Each year in the past 5 years STRA had a positive operating cash flow.
1.2 Ratios
STRA has a Return On Assets of 5.40%. This is in the better half of the industry: STRA outperforms 67.11% of its industry peers.
With a Return On Equity value of 6.89%, STRA perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
STRA has a better Return On Invested Capital (6.92%) than 69.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 10.55%.
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 better Profit Margin (9.08%) than 69.74% of its industry peers.
In the last couple of years the Profit Margin of STRA has grown nicely.
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's Gross Margin of 47.95% is in line compared to the rest of the industry. STRA outperforms 52.63% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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
STRA has an Altman-Z score of 3.65. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, STRA belongs to the top of the industry, outperforming 81.58% 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 | 3.65 |
ROIC/WACC0.79
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.22 indicates that STRA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.22, STRA perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that STRA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.22, STRA is in line with its industry, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, 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.
Looking at the last year, STRA shows a small growth in Revenue. The Revenue has grown by 3.74% in the last year.
Measured over the past years, STRA shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
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
STRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.88% yearly.
The Revenue is expected to grow by 4.08% on average over the next years.
EPS Next Y22.87%
EPS Next 2Y16.02%
EPS Next 3Y15.88%
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.
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
With a Price/Earnings ratio of 14.57, STRA is valued correctly.
Based on the Price/Earnings ratio, STRA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.71, STRA is valued correctly.
78.95% of the companies in the same industry are more expensive than STRA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, STRA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
75.00% 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 | 14.87 | ||
| EV/EBITDA | 7.73 |
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 15.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y15.88%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.32, STRA pays a better dividend. On top of this STRA pays more dividend than 97.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, STRA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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.
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
50.94% of the earnings are spent on dividend by STRA. 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 3Y15.88%
83.32
-0.07 (-0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.98%
Inst Owner Change0%
Ins Owners3.11%
Ins Owner Change-0.19%
Market Cap1.96B
Revenue(TTM)1.26B
Net Income(TTM)114.04M
Analysts84.44
Price Target100.3 (20.38%)
Short Float %3.82%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP50.94%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.21%
Min EPS beat(2)3.97%
Max EPS beat(2)22.46%
EPS beat(4)4
Avg EPS beat(4)15.61%
Min EPS beat(4)0.41%
Max EPS beat(4)35.59%
EPS beat(8)8
Avg EPS beat(8)27.54%
EPS beat(12)11
Avg EPS beat(12)20.15%
EPS beat(16)13
Avg EPS beat(16)15.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)-2.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.15%
EPS NY rev (1m)0%
EPS NY rev (3m)4.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 12.71 | ||
| P/S | 1.56 | ||
| P/FCF | 14.87 | ||
| P/OCF | 11.19 | ||
| P/B | 1.18 | ||
| P/tB | 11.51 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)5.72
EY6.87%
EPS(NY)6.56
Fwd EY7.87%
FCF(TTM)5.61
FCFY6.73%
OCF(TTM)7.45
OCFY8.94%
SpS53.49
BVpS70.5
TBVpS7.24
PEG (NY)0.64
PEG (5Y)N/A
Graham Number95.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 6.89% | ||
| ROCE | 9.95% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 74.51% | ||
| OM | 14.48% | ||
| PM (TTM) | 9.08% | ||
| GM | 47.95% | ||
| FCFM | 10.48% |
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-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.99% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.55% | ||
| Profit Quality | 115.45% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.65 |
F-Score7
WACC8.75%
ROIC/WACC0.79
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 Y22.87%
EPS Next 2Y16.02%
EPS Next 3Y15.88%
EPS Next 5YN/A
Revenue 1Y (TTM)3.74%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
Revenue Next Year3.61%
Revenue Next 2Y3.7%
Revenue Next 3Y4.08%
Revenue Next 5YN/A
EBIT growth 1Y5.59%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year66.32%
EBIT Next 3Y27.04%
EBIT Next 5YN/A
FCF growth 1Y160.21%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y97.41%
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 for 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 valuation of STRATEGIC EDUCATION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STRATEGIC EDUCATION INC (STRA) is 14.57 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for STRA stock?
The financial health rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10.