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Looking for growth without the hefty price tag? Consider NYSE:LRN.

By Mill Chart

Last update: Jan 23, 2024

Take a closer look at STRIDE INC (NYSE:LRN), an affordable growth stock uncovered by our stock screener. NYSE:LRN boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

A Closer Look at Growth for NYSE:LRN

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:LRN has achieved a 7 out of 10:

  • LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.69%, which is quite impressive.
  • Measured over the past years, LRN shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.60% on average per year.
  • Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 10.56% in the last year.
  • Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.89% on average per year.
  • LRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.12% yearly.
  • The Revenue is expected to grow by 8.80% on average over the next years. This is quite good.

Valuation Insights: NYSE:LRN

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:LRN scores a 6 out of 10:

  • Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 75.00% of the companies listed in the same industry.
  • LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.97, which is the current average of the S&P500 Index.
  • LRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. LRN is cheaper than 81.25% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (20.90), we can say LRN is valued slightly cheaper.
  • LRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRN is cheaper than 78.13% of the companies in the same industry.
  • 73.44% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
  • LRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • LRN has a very decent profitability rating, which may justify a higher PE ratio.
  • LRN's earnings are expected to grow with 22.12% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NYSE:LRN?

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LRN has received a 7 out of 10:

  • LRN has an Altman-Z score of 4.25. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.25, LRN belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • LRN has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as LRN would need 3.29 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 3.29, LRN is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
  • 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.
  • Looking at the Current ratio, with a value of 3.61, LRN belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
  • A Quick Ratio of 3.54 indicates that LRN has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 3.54, LRN belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.

Profitability Examination for NYSE:LRN

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:LRN has achieved a 7:

  • LRN has a Return On Assets of 8.74%. This is amongst the best in the industry. LRN outperforms 90.63% of its industry peers.
  • Looking at the Return On Equity, with a value of 16.11%, LRN belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 9.85%, LRN belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
  • 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.
  • Looking at the Profit Margin, with a value of 8.16%, LRN is in the better half of the industry, outperforming 79.69% of the companies in the same industry.
  • LRN's Profit Margin has improved in the last couple of years.
  • LRN's Operating Margin of 10.44% is fine compared to the rest of the industry. LRN outperforms 73.44% of its industry peers.
  • In the last couple of years the Operating Margin of LRN has grown nicely.

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

Check the latest full fundamental report of LRN for a complete fundamental analysis.

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 (4/22/2024, 7:13:22 PM)

After market: 58.1 0 (0%)

58.1

+1.57 (+2.78%)

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