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NYSE:LRN, a growth stock which is not overvalued.

By Mill Chart

Last update: Mar 5, 2024

Uncover the potential of STRIDE INC (NYSE:LRN), a growth stock that our stock screener found to be reasonably priced. NYSE:LRN is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Evaluating Growth: NYSE:LRN

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:LRN has earned a 7 for growth:

  • The Earnings Per Share has grown by an impressive 69.96% over the past year.
  • 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 10.13% in the last year.
  • The Revenue has been growing by 14.89% on average over the past years. This is quite good.
  • The Earnings Per Share is expected to grow by 22.12% on average over the next years. This is a very strong growth
  • LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.80% yearly.

Unpacking NYSE:LRN's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:LRN has received a 7 out of 10:

  • Based on the Price/Earnings ratio, LRN is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.93. LRN is valued slightly cheaper when compared to this.
  • LRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LRN is cheaper than 80.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (21.91), we can say LRN is valued slightly cheaper.
  • 80.00% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 78.46% of the companies in the same industry.
  • LRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of LRN 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.

ChartMill's Evaluation of Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:LRN, the assigned 8 reflects its health status:

  • An Altman-Z score of 4.54 indicates that LRN is not in any danger for bankruptcy at the moment.
  • LRN's Altman-Z score of 4.54 is amongst the best of the industry. LRN outperforms 87.69% of its industry peers.
  • The Debt to FCF ratio of LRN is 3.02, which is a good value as it means it would take LRN, 3.02 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 3.02, LRN belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
  • LRN has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
  • A Current Ratio of 4.52 indicates that LRN has no problem at all paying its short term obligations.
  • LRN has a Current ratio of 4.52. This is amongst the best in the industry. LRN outperforms 90.77% of its industry peers.
  • A Quick Ratio of 4.44 indicates that LRN has no problem at all paying its short term obligations.
  • LRN's Quick ratio of 4.44 is amongst the best of the industry. LRN outperforms 90.77% of its industry peers.

Profitability Assessment of 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 8:

  • LRN's Return On Assets of 9.57% is amongst the best of the industry. LRN outperforms 90.77% of its industry peers.
  • The Return On Equity of LRN (16.52%) is better than 87.69% of its industry peers.
  • With an excellent Return On Invested Capital value of 10.16%, LRN belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
  • The last Return On Invested Capital (10.16%) for LRN is above the 3 year average (7.75%), which is a sign of increasing profitability.
  • LRN has a Profit Margin of 8.80%. This is amongst the best in the industry. LRN outperforms 87.69% of its industry peers.
  • LRN's Profit Margin has improved in the last couple of years.
  • LRN's Operating Margin of 11.02% is fine compared to the rest of the industry. LRN outperforms 75.38% of its industry peers.
  • LRN's Operating Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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STRIDE INC

NYSE:LRN (5/28/2024, 9:21:51 AM)

71.23

+0.32 (+0.45%)

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