78.58 USD
-1.62 (-2.02%)
78.58 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. While STRA has a great health rating, its profitability is only average at the moment. STRA is valued quite cheap, while showing a decent growth score. This is a good combination! STRA also has an excellent dividend rating. With these ratings, STRA could be worth investigating further for value and 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.
STRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STRA's Return On Assets of 5.40% is fine compared to the rest of the industry. STRA outperforms 67.11% of its industry peers.
STRA has a Return On Equity (6.89%) which is comparable to the rest of the 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 3 year average ROIC (4.24%) for STRA is below the current ROIC(6.92%), indicating increased profibility in the last year.
| 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's Profit Margin of 9.08% is fine compared to the rest of the industry. STRA outperforms 69.74% of its industry peers.
STRA's Profit Margin has improved in the last couple of years.
The Operating Margin of STRA (14.48%) is better than 75.00% of its industry peers.
STRA's Operating Margin has been stable in the last couple of years.
The Gross Margin of STRA (47.95%) is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRA is destroying value.
STRA has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.50 indicates that STRA is not in any danger for bankruptcy at the moment.
STRA's Altman-Z score of 3.50 is amongst the best of the industry. STRA outperforms 81.58% 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 | 3.5 |
ROIC/WACC0.79
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.22 indicates that STRA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.22, STRA is in line with its industry, outperforming 52.63% of the companies in the same industry.
STRA has a Quick Ratio of 1.22. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.22, STRA perfoms like the industry average, 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.
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.
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
The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
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.
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
A Price/Earnings ratio of 13.74 indicates a correct valuation of STRA.
Based on the Price/Earnings ratio, STRA is valued a bit cheaper than 76.32% of the companies in the same industry.
STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.99, the valuation of STRA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STRA indicates a rather cheap valuation: STRA is cheaper than 80.26% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of STRA to the average of the S&P500 Index (23.23), we can say STRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.74 | ||
| Fwd PE | 11.99 |
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.
Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.02 | ||
| EV/EBITDA | 7.23 |
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.
STRA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as STRA's earnings are expected to grow with 15.88% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y15.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.99%, 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 0.32. STRA pays more dividend than 97.37% of the companies 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 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 50.94% 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.
DP50.94%
EPS Next 2Y16.02%
EPS Next 3Y15.88%
78.58
-1.62 (-2.02%)
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 Cap1.85B
Revenue(TTM)1.26B
Net Income(TTM)114.04M
Analysts84.44
Price Target100.3 (27.64%)
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 | 13.74 | ||
| Fwd PE | 11.99 | ||
| P/S | 1.47 | ||
| P/FCF | 14.02 | ||
| P/OCF | 10.55 | ||
| P/B | 1.11 | ||
| P/tB | 10.85 | ||
| EV/EBITDA | 7.23 |
EPS(TTM)5.72
EY7.28%
EPS(NY)6.56
Fwd EY8.34%
FCF(TTM)5.61
FCFY7.13%
OCF(TTM)7.45
OCFY9.48%
SpS53.49
BVpS70.5
TBVpS7.24
PEG (NY)0.6
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 | 3.5 |
F-Score7
WACC8.74%
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 7 / 10 to STRATEGIC EDUCATION INC (STRA). This can be considered as Undervalued.
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 13.74 and the Price/Book (PB) ratio is 1.11.
Can you provide the financial health for STRA stock?
The financial health rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10.