STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
USA - NASDAQ:STRA - US86272C1036 - Common Stock
74.88 USD
+0.24 (+0.32%)
We assign a fundamental rating of 6 out of 10 to STRA. STRA was compared to 78 industry peers in the Diversified Consumer Services industry. STRA gets an excellent profitability rating and is at the same time showing great financial health properties. STRA is not valued too expensively and it also shows a decent growth rate. STRA also has an excellent dividend rating. These ratings could make STRA a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
STRA had positive earnings in the past year.
In the past year STRA had a positive cash flow from operations.
Each year in the past 5 years STRA has been profitable.
In the past 5 years STRA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.51%, STRA is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
STRA has a better Return On Equity (6.91%) than 61.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.35%, STRA is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 9.50%.
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 71.79% of the companies in the same industry.
STRA's Profit Margin has improved in the last couple of years.
STRA has a Operating Margin of 13.50%. This is in the better half of the industry: STRA outperforms 71.79% of its industry peers.
In the last couple of years the Operating Margin of STRA has remained more or less at the same level.
STRA's Gross Margin of 47.36% is in line compared to the rest of the industry. STRA outperforms 51.28% 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
STRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 3.57 indicates that STRA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.57, STRA belongs to the top of the industry, outperforming 80.77% 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 | 3.57 |
ROIC/WACC0.73
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, STRA is in line with its industry, outperforming 55.13% 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 58.97% 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%.
Measured over the past years, STRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.07% on average per year.
STRA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.31%.
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
Based on estimates for the next years, STRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.66% on average per year.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y17.5%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.26, which 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 78.21% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. STRA is valued slightly cheaper when compared to this.
STRA is valuated reasonably with a Price/Forward Earnings ratio of 11.38.
Based on the Price/Forward Earnings ratio, STRA is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
STRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than 76.92% of the companies in the same industry.
STRA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STRA is cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 7.45 |
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.
STRA's earnings are expected to grow with 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 3.03%.
STRA's Dividend Yield is rather good when compared to the industry average which is at 1.98. STRA pays more dividend than 97.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, STRA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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.
STRA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.49%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
STRA pays out 50.95% of its income as dividend. 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.
DP50.95%
EPS Next 2Y16.26%
EPS Next 3Y16.66%
NASDAQ:STRA (11/4/2025, 1:35:40 PM)
74.88
+0.24 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change0.48%
Ins Owners3.06%
Ins Owner Change-0.06%
Market Cap1.79B
Revenue(TTM)1.24B
Net Income(TTM)115.16M
Analysts84.44
Price Target103.36 (38.03%)
Short Float %2.63%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)-1.3%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 11.38 | ||
| P/S | 1.44 | ||
| P/FCF | 14.38 | ||
| P/OCF | 10.76 | ||
| P/B | 1.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.45 |
EPS(TTM)5.25
EY7.01%
EPS(NY)6.58
Fwd EY8.79%
FCF(TTM)5.21
FCFY6.95%
OCF(TTM)6.96
OCFY9.29%
SpS51.99
BVpS69.74
TBVpS-2.54
PEG (NY)0.82
PEG (5Y)N/A
Graham Number90.76
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%
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 | 3.57 |
F-Score8
WACC8.66%
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)3.14%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%14.29%
EPS Next Y17.5%
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%
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 7 / 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 17.5% 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%.