STRATEGIC EDUCATION INC (STRA)
US86272C1036 - Common Stock
We assign a fundamental rating of 6 out of 10 to STRA. STRA was compared to 66 industry peers in the Diversified Consumer Services industry. STRA is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. STRA has a decent growth rate and is not valued too expensively. Finally STRA also has an excellent dividend rating. This makes STRA very considerable 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.
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 78.13% of its industry peers.
STRA's Return On Equity of 7.37% is fine compared to the rest of the industry. STRA outperforms 60.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.18%, STRA is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STRA is significantly below the industry average of 12.48%.
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
The Profit Margin of STRA (10.44%) is better than 76.56% of its industry peers.
STRA's Profit Margin has declined in the last couple of years.
STRA has a better Operating Margin (14.23%) than 76.56% of its industry peers.
In the last couple of years the Operating Margin of STRA has grown nicely.
STRA's Gross Margin of 47.38% is in line compared to the rest of the industry. STRA outperforms 45.31% 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
STRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for STRA remains at a similar level compared to 1 year ago.
The number of shares outstanding for STRA has been increased compared to 5 years ago.
STRA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.99 indicates that STRA is not in any danger for bankruptcy at the moment.
STRA has a Altman-Z score of 3.99. This is in the better half of the industry: STRA outperforms 79.69% of its industry peers.
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 | 3.99 |
ROIC/WACC0.7
WACC8.86%
2.3 Liquidity
STRA has a Current Ratio of 1.34. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of STRA (1.34) is comparable to the rest of the industry.
STRA has a Quick Ratio of 1.34. 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 Quick ratio, with a value of 1.34, STRA is in line with its industry, outperforming 51.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 87.90% over the past year.
Measured over the past years, STRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.13% on average per year.
Looking at the last year, STRA shows a quite strong growth in Revenue. The Revenue has grown by 10.10% in the last year.
Measured over the past years, STRA shows a quite strong growth in Revenue. The Revenue has been growing by 12.30% on average per year.
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
STRA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.13% yearly.
Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
EPS Next Y29.58%
EPS Next 2Y24.38%
EPS Next 3Y23.13%
EPS Next 5YN/A
Revenue Next Year-0.7%
Revenue Next 2Y7.22%
Revenue Next 3Y6.09%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
STRA is valuated rather expensively with a Price/Earnings ratio of 18.31.
75.00% of the companies in the same industry are more expensive than STRA, based on the Price/Earnings ratio.
STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.84, which indicates a correct valuation of STRA.
Based on the Price/Forward Earnings ratio, STRA is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. STRA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
STRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STRA is cheaper than 76.56% 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 73.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.45 | ||
| EV/EBITDA | 9.64 |
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)0.62
PEG (5Y)N/A
EPS Next 2Y24.38%
EPS Next 3Y23.13%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.48%.
Compared to an average industry Dividend Yield of 277.91, STRA pays a better dividend. On top of this STRA pays more dividend than 90.63% of the companies listed in the same industry.
STRA's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 Years6
5.3 Sustainability
46.60% 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.
DP46.6%
EPS Next 2Y24.38%
EPS Next 3Y23.13%
STRATEGIC EDUCATION INC
NASDAQ:STRA (11/21/2024, 5:20:01 PM)
After market: 96.66 0 (0%)96.66
+1.14 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.37B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.31 | ||
| Fwd PE | 16.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 7.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.23% | ||
| PM (TTM) | 10.44% | ||
| GM | 47.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)87.9%
EPS 3Y-18.05%
EPS 5Y
EPS Q2Q%
EPS Next Y29.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.1%
Revenue growth 3Y3.3%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y