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Investors should take note of NYSE:LRN, a growth stock that remains attractively priced.

By Mill Chart

Last update: Oct 30, 2023

Our stock screening tool has pinpointed STRIDE INC (NYSE:LRN) as a growth stock that isn't overvalued. NYSE:LRN is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Growth Assessment of NYSE:LRN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:LRN has received a 7 out of 10:

  • The Earnings Per Share has grown by an impressive 68.69% over the past year.
  • The Earnings Per Share has been growing by 34.60% on average over the past years. This is a very strong growth
  • The Revenue has grown by 10.56% in the past year. This is quite good.
  • LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.89% yearly.
  • Based on estimates for the next years, LRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.76% on average per year.
  • LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.

Valuation Examination for NYSE:LRN

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:LRN has earned a 5 for valuation:

  • Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 74.63% of the companies listed in the same industry.
  • LRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.48.
  • LRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LRN is cheaper than 71.64% of the companies in the same industry.
  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 74.63% of the companies listed in the same industry.
  • LRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LRN is cheaper than 79.10% of the companies in the same industry.
  • The excellent profitability rating of LRN may justify a higher PE ratio.
  • LRN's earnings are expected to grow with 15.76% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:LRN

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:LRN has earned a 8 out of 10:

  • An Altman-Z score of 3.99 indicates that LRN is not in any danger for bankruptcy at the moment.
  • LRN's Altman-Z score of 3.99 is amongst the best of the industry. LRN outperforms 86.57% of its industry peers.
  • The Debt to FCF ratio of LRN is 3.29, which is a good value as it means it would take LRN, 3.29 years of fcf income to pay off all of its debts.
  • LRN has a better Debt to FCF ratio (3.29) than 80.60% of its industry peers.
  • A Debt/Equity ratio of 0.46 indicates that LRN is not too dependend on debt financing.
  • LRN has a Current Ratio of 3.61. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
  • LRN has a better Current ratio (3.61) than 80.60% of its industry peers.
  • LRN has a Quick Ratio of 3.54. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
  • LRN has a Quick ratio of 3.54. This is amongst the best in the industry. LRN outperforms 80.60% of its industry peers.

Profitability Insights: NYSE:LRN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LRN was assigned a score of 8 for profitability:

  • The Return On Assets of LRN (8.74%) is better than 88.06% of its industry peers.
  • LRN's Return On Equity of 16.11% is amongst the best of the industry. LRN outperforms 86.57% of its industry peers.
  • LRN has a better Return On Invested Capital (9.85%) than 86.57% of its industry peers.
  • The last Return On Invested Capital (9.85%) for LRN is above the 3 year average (7.75%), which is a sign of increasing profitability.
  • LRN has a Profit Margin of 8.16%. This is amongst the best in the industry. LRN outperforms 82.09% of its industry peers.
  • LRN's Profit Margin has improved in the last couple of years.
  • LRN has a better Operating Margin (10.44%) than 74.63% of its industry peers.
  • LRN's Operating Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of LRN contains the most current fundamental analsysis.

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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STRIDE INC

NYSE:LRN (2/21/2024, 12:19:59 PM)

54.89

-0.49 (-0.88%)

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STRIDE INC (NYSE:LRN) is probably undervalued for the fundamentals it is displaying.

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Don't overlook STRIDE INC (NYSE:LRN)—a stock with solid growth prospects and a reasonable valuation.

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