STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
USA - NASDAQ:STRA - US86272C1036 - Common Stock
81.94 USD
+0.51 (+0.63%)
81.94 USD
0 (0%)
STRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 74 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of STRA get a neutral evaluation. Nothing too spectacular is happening here. STRA may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, STRA could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year STRA was profitable.
In the past year STRA had a positive cash flow from operations.
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 Return On Assets of 5.51%. This is in the better half of the industry: STRA outperforms 70.27% of its industry peers.
STRA has a Return On Equity (6.91%) which is comparable to the rest of the industry.
The Return On Invested Capital of STRA (6.35%) is better than 72.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STRA is significantly below the industry average of 9.88%.
The last Return On Invested Capital (6.35%) for STRA is above the 3 year average (4.24%), which is a sign of increasing profitability.
| 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
The Profit Margin of STRA (9.27%) is better than 70.27% of its industry peers.
STRA's Profit Margin has improved in the last couple of years.
The Operating Margin of STRA (13.50%) is better than 70.27% of its industry peers.
In the last couple of years the Operating Margin of STRA has remained more or less at the same level.
Looking at the Gross Margin, with a value of 47.36%, STRA is in line with its industry, outperforming 52.70% of the companies in the same industry.
STRA's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, STRA has more shares outstanding
Compared to 5 years ago, STRA has more shares outstanding
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 3.82. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
STRA has a Altman-Z score of 3.82. This is in the better half of the industry: STRA outperforms 79.73% 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 | 3.82 |
ROIC/WACC0.74
WACC8.6%
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 51.35% of the companies in the same industry.
A Quick Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
STRA has a Quick ratio of 1.26. This is comparable to the rest of the industry: STRA outperforms 55.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
STRA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.14%.
STRA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.07% yearly.
The Revenue has been growing slightly by 4.31% in the past year.
The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)3.14%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%14.29%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%2.95%
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 16.66% yearly.
Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
EPS Next Y17.64%
EPS Next 2Y16.26%
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.61, STRA is valued correctly.
STRA's Price/Earnings ratio is rather cheap when compared to the industry. STRA is cheaper than 81.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, STRA is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.45, which indicates a correct valuation of STRA.
STRA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STRA is cheaper than 86.49% of the companies in the same industry.
STRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 12.45 |
4.2 Price Multiples
78.38% of the companies in the same industry are more expensive than STRA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, STRA is valued cheaper than 81.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 8.27 |
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 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.84%.
STRA's Dividend Yield is rather good when compared to the industry average which is at 3.04. STRA pays more dividend than 95.95% of the companies in the same industry.
STRA's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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
50.95% 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 2Y16.26%
EPS Next 3Y16.66%
81.94
+0.51 (+0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.77%
Inst Owner Change0.6%
Ins Owners3.03%
Ins Owner Change1.27%
Market Cap1.96B
Analysts84.44
Price Target103.36 (26.14%)
Short Float %3.03%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)2.01%
PT rev (3m)-1.3%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 12.45 | ||
| P/S | 1.58 | ||
| P/FCF | 15.74 | ||
| P/OCF | 11.78 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)5.25
EY6.41%
EPS(NY)6.58
Fwd EY8.03%
FCF(TTM)5.21
FCFY6.36%
OCF(TTM)6.96
OCFY8.49%
SpS51.99
BVpS69.74
TBVpS-2.54
PEG (NY)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 6.91% | ||
| ROCE | 9.13% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.98% | ||
| ROICexgc | N/A | ||
| 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%
ROICexcg growth 3Y24.96%
ROICexcg 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 | 3.82 |
F-Score8
WACC8.6%
ROIC/WACC0.74
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)3.14%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%14.29%
EPS Next Y17.64%
EPS Next 2Y16.26%
EPS Next 3Y16.66%
EPS Next 5YN/A
Revenue 1Y (TTM)4.31%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%2.95%
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%