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Why STRIDE INC (NYSE:LRN) should be investigated by quality investors.

By Mill Chart

Last update: Oct 27, 2023

In this article we will dive into STRIDE INC (NYSE:LRN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed STRIDE INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Highlighting Notable Quality Metrics of NYSE:LRN.

  • STRIDE INC has shown strong performance in revenue growth over the past 5 years, with a 14.89% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of STRIDE INC stands at 20.72%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • STRIDE INC maintains a healthy Debt/Free Cash Flow Ratio of 3.48, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • STRIDE INC demonstrates consistent Profit Quality over the past 5 years, with a strong 149.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • STRIDE INC has consistently achieved strong EBIT growth over the past 5 years, with a 45.36% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of STRIDE INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

LRN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Diversified Consumer Services industry. LRN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LRN is not valued too expensively and it also shows a decent growth rate. These ratings could make LRN a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of LRN

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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