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STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:STRA - US86272C1036 - Common Stock

84.34 USD
+0.58 (+0.69%)
Last: 1/21/2026, 3:23:20 PM
Fundamental Rating

6

Taking everything into account, STRA scores 6 out of 10 in our fundamental rating. STRA was compared to 76 industry peers in the Diversified Consumer Services industry. STRA has an excellent financial health rating, but there are some minor concerns on its profitability. STRA has a correct valuation and a medium growth rate. Finally STRA also has an excellent dividend rating. With these ratings, STRA could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

6

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.
  • Each year in the past 5 years STRA had a positive operating cash flow.
STRA Yearly Net Income VS EBIT VS OCF VS FCFSTRA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

1.2 Ratios

  • With a decent Return On Assets value of 5.40%, STRA is doing good in the industry, outperforming 67.11% of the companies in the same industry.
  • With a Return On Equity value of 6.89%, STRA perfoms like the industry average, outperforming 57.89% of the companies in the same 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 10.15%.
  • The last Return On Invested Capital (6.92%) for STRA is above the 3 year average (4.24%), which is a sign of increasing profitability.
Industry RankSector 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%
STRA Yearly ROA, ROE, ROICSTRA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 9.08%, STRA is doing good in the industry, outperforming 69.74% of the companies in the same industry.
  • STRA's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 14.48%, STRA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • STRA's Operating Margin has been stable in the last couple of years.
  • STRA's Gross Margin of 47.95% is in line compared to the rest of the industry. STRA outperforms 52.63% 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 RankSector 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%
STRA Yearly Profit, Operating, Gross MarginsSTRA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRA is destroying value.
  • The number of shares outstanding for STRA has been increased compared to 1 year ago.
  • The number of shares outstanding for STRA has been increased compared to 5 years ago.
  • STRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
STRA Yearly Shares OutstandingSTRA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
STRA Yearly Total Debt VS Total AssetsSTRA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • STRA has an Altman-Z score of 3.66. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
  • STRA has a better Altman-Z score (3.66) than 80.26% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.66
ROIC/WACC0.79
WACC8.8%
STRA Yearly LT Debt VS Equity VS FCFSTRA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

  • STRA has a Current 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.
  • 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.
  • The Quick ratio of STRA (1.22) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22
STRA Yearly Current Assets VS Current LiabilitesSTRA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

4

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.
  • 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 3.74% in the past year.
  • The Revenue has been growing slightly by 4.12% on average over the past years.
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

  • STRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.
  • STRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y22.87%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
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.
STRA Yearly Revenue VS EstimatesSTRA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B
STRA Yearly EPS VS EstimatesSTRA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

  • STRA is valuated correctly with a Price/Earnings ratio of 14.74.
  • Based on the Price/Earnings ratio, STRA is valued a bit cheaper than the industry average as 72.37% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of STRA to the average of the S&P500 Index (26.94), we can say STRA is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 12.87 indicates a correct valuation of STRA.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 78.95% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.94. STRA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.74
Fwd PE 12.87
STRA Price Earnings VS Forward Price EarningsSTRA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 75.00% of the companies listed in the same industry.
  • STRA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STRA is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.05
EV/EBITDA 7.76
STRA Per share dataSTRA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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 16.06% in the coming years.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y16.06%

7

5. Dividend

5.1 Amount

  • STRA has a Yearly Dividend Yield of 2.84%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.36, STRA pays a better dividend. On top of this STRA pays more dividend than 97.37% of the companies listed in the same industry.
  • STRA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 2.84%

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.
  • 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
STRA Yearly Dividends per shareSTRA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

  • 50.94% 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.
DP50.94%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
STRA Yearly Income VS Free CF VS DividendSTRA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M
STRA Dividend Payout.STRA Dividend Payout, showing the Payout Ratio.STRA Dividend Payout.PayoutRetained Earnings

STRATEGIC EDUCATION INC

NASDAQ:STRA (1/21/2026, 3:23:20 PM)

84.34

+0.58 (+0.69%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners93.98%
Inst Owner Change0.53%
Ins Owners3.11%
Ins Owner Change-0.19%
Market Cap1.98B
Revenue(TTM)1.26B
Net Income(TTM)114.04M
Analysts84.44
Price Target103.7 (22.95%)
Short Float %4.03%
Short Ratio4.84
Dividend
Industry RankSector Rank
Dividend Yield 2.84%
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)3.39%
PT rev (3m)0.33%
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 RankSector Rank
PE 14.74
Fwd PE 12.87
P/S 1.58
P/FCF 15.05
P/OCF 11.33
P/B 1.2
P/tB 11.65
EV/EBITDA 7.76
EPS(TTM)5.72
EY6.78%
EPS(NY)6.56
Fwd EY7.77%
FCF(TTM)5.61
FCFY6.65%
OCF(TTM)7.45
OCFY8.83%
SpS53.49
BVpS70.5
TBVpS7.24
PEG (NY)0.64
PEG (5Y)N/A
Graham Number95.26
Profitability
Industry RankSector 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 RankSector 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 3.66
F-Score7
WACC8.8%
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 3Y16.06%
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 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 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 14.74 and the Price/Book (PB) ratio is 1.2.


Can you provide the financial health for STRA stock?

The financial health rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10.