STRATEGIC EDUCATION INC (STRA)
US86272C1036 - Common Stock
Taking everything into account, STRA scores 6 out of 10 in our fundamental rating. STRA was compared to 69 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. With these ratings, STRA could be worth investigating further 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.
In the past 5 years STRA has always 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 5.78%, STRA is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
STRA has a Return On Equity (7.37%) which is in line with 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 72.73% 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 12.30%.
The 3 year average ROIC (3.40%) for STRA is below the current ROIC(6.18%), indicating increased profibility in the last year.
| 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 75.76% of its industry peers.
STRA's Profit Margin has declined in the last couple of years.
STRA has a Operating Margin of 14.23%. This is in the better half of the industry: STRA outperforms 77.27% of its industry peers.
STRA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 47.38%, STRA perfoms like the industry average, outperforming 46.97% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRA is destroying value.
STRA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, STRA has more shares outstanding
Compared to 1 year ago, STRA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.90 indicates that STRA is not in any danger for bankruptcy at the moment.
The Altman-Z score of STRA (3.90) is better than 81.82% 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 | 3.9 |
ROIC/WACC0.69
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.34 indicates that STRA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.34, STRA perfoms like the industry average, outperforming 50.00% of the companies in the same 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 (1.34) which is in line with 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.
The Earnings Per Share has been decreasing by -4.13% on average over the past years.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.56, which indicates a rather expensive current valuation of STRA.
Based on the Price/Earnings ratio, STRA is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, STRA is valued a bit cheaper.
STRA is valuated correctly with a Price/Forward Earnings ratio of 16.18.
Based on the Price/Forward Earnings ratio, STRA is valued a bit cheaper than 75.76% of the companies in the same industry.
STRA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 16.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
75.76% 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 | 15.78 | ||
| EV/EBITDA | 9.32 |
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.
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 23.13% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y24.27%
EPS Next 3Y23.13%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
STRA's Dividend Yield is rather good when compared to the industry average which is at 4.35. STRA pays more dividend than 92.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, STRA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of STRA is nicely growing with an annual growth rate of 7.34%!
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)7.34%
Div Incr Years0
Div Non Decr Years7
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.
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%
STRATEGIC EDUCATION INC
NASDAQ:STRA (12/20/2024, 8:00:00 PM)
After market: 92.7 0 (0%)92.7
-2.38 (-2.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners93.83%
Inst Owner Change-0.47%
Ins Owners2.92%
Ins Owner Change0.27%
Market Cap2.28B
Analysts84.44
Price Target124.1 (33.87%)
Short Float %1.64%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Dividend Growth(5Y)7.34%
DP46.6%
Div Incr Years0
Div Non Decr Years7
Ex-Date
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)-3.95%
PT rev (3m)-8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.4%
EPS NY rev (1m)2.69%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)9.28%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 16.18 | ||
| P/S | 1.88 | ||
| P/FCF | 15.78 | ||
| P/OCF | 12.42 | ||
| P/B | 1.33 | ||
| P/tB | 11.15 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)5.28
EY5.7%
EPS(NY)5.73
Fwd EY6.18%
FCF(TTM)5.88
FCFY6.34%
OCF(TTM)7.46
OCFY8.05%
SpS49.29
BVpS69.87
TBVpS8.31
PEG (NY)0.53
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 | 3.9 |
F-Score9
WACC8.96%
ROIC/WACC0.69
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%