STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA - Nasdaq - US86272C1036 - Common Stock - Currency: USD
STRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 71 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. Finally 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.
Each year in the past 5 years STRA had a positive operating cash flow.
1.2 Ratios
STRA's Return On Assets of 5.78% is fine compared to the rest of the industry. STRA outperforms 76.56% of its industry peers.
STRA has a Return On Equity of 7.37%. This is comparable to the rest of the industry: STRA outperforms 59.38% of its industry peers.
With a decent Return On Invested Capital value of 6.18%, STRA is doing good in the industry, outperforming 73.44% of the companies in the same industry.
STRA had an Average Return On Invested Capital over the past 3 years of 3.40%. This is significantly below the industry average of 12.02%.
The last Return On Invested Capital (6.18%) for STRA is above the 3 year average (3.40%), which is a sign of increasing profitability.
| 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 76.56% of the companies in the same industry.
STRA's Operating Margin has improved in the last couple of years.
STRA has a Gross Margin of 47.38%. This is comparable to the rest of the industry: STRA outperforms 51.56% 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 | 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.
STRA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for STRA has been increased compared to 5 years ago.
The debt/assets ratio for STRA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.24 indicates that STRA is not in any danger for bankruptcy at the moment.
The Altman-Z score of STRA (4.24) is better than 85.94% 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 | 4.24 |
ROIC/WACC0.59
WACC10.45%
2.3 Liquidity
A Current Ratio of 1.34 indicates that STRA should not have too much problems paying its short term obligations.
The Current ratio of STRA (1.34) is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that STRA should not have too much problems paying its short term obligations.
STRA has a Quick ratio of 1.34. This is comparable to the rest of the industry: STRA outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.90%, which is quite impressive.
STRA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.13% yearly.
Looking at the last year, STRA shows a quite strong growth in Revenue. The Revenue has grown by 10.10% in the last year.
STRA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.30% yearly.
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
The Earnings Per Share is expected to grow by 23.13% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.09% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 19.27, STRA is valued on the expensive side.
STRA's Price/Earnings ratio is a bit cheaper when compared to the industry. STRA is cheaper than 70.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, STRA is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.76 indicates a rather expensive valuation of STRA.
Based on the Price/Forward Earnings ratio, STRA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STRA to the average of the S&P500 Index (22.68), we can say STRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 17.76 |
4.2 Price Multiples
73.44% of the companies in the same industry are more expensive than STRA, based on the Enterprise Value to EBITDA ratio.
78.13% 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 | 17.31 | ||
| EV/EBITDA | 10.53 |
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 23.13% in the coming years.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y24.27%
EPS Next 3Y23.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, 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 4.39. STRA pays more dividend than 92.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, STRA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
STRA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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%
101.72
-1.74 (-1.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change-1.22%
Ins Owners2.92%
Ins Owner Change-0.21%
Market Cap2.50B
Analysts84.44
Price Target124.1 (22%)
Short Float %1.39%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-3.95%
EPS NQ rev (1m)-5.58%
EPS NQ rev (3m)-9.27%
EPS NY rev (1m)0%
EPS NY rev (3m)2.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)9.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 17.76 | ||
| P/S | 2.06 | ||
| P/FCF | 17.31 | ||
| P/OCF | 13.63 | ||
| P/B | 1.46 | ||
| P/tB | 12.24 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)5.28
EY5.19%
EPS(NY)5.73
Fwd EY5.63%
FCF(TTM)5.88
FCFY5.78%
OCF(TTM)7.46
OCFY7.34%
SpS49.29
BVpS69.87
TBVpS8.31
PEG (NY)0.58
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 | 4.24 |
F-Score9
WACC10.45%
ROIC/WACC0.59
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%