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For those who appreciate value investing, NYSE:LRN is a compelling option with its solid fundamentals.

By Mill Chart

Last update: Mar 18, 2024

Uncover the potential of STRIDE INC (NYSE:LRN) as our stock screener's choice for an undervalued stock. NYSE:LRN maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

ChartMill's Evaluation of Valuation

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 7 for valuation:

  • Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 76.56% of the companies listed in the same industry.
  • LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.59, which is the current average of the S&P500 Index.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 81.25% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (22.07), 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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 78.13% of the companies listed 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.
  • LRN has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as LRN's earnings are expected to grow with 20.92% in the coming years.

A Closer Look at Profitability for NYSE:LRN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:LRN, the assigned 8 is a significant indicator of profitability:

  • LRN has a better Return On Assets (9.57%) than 89.06% of its industry peers.
  • With an excellent Return On Equity value of 16.52%, LRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • The Return On Invested Capital of LRN (10.16%) is better than 85.94% of its industry peers.
  • The 3 year average ROIC (7.75%) for LRN is below the current ROIC(10.16%), indicating increased profibility in the last year.
  • LRN has a Profit Margin of 8.80%. This is amongst the best in the industry. LRN outperforms 87.50% of its industry peers.
  • In the last couple of years the Profit Margin of LRN has grown nicely.
  • LRN's Operating Margin of 11.02% is fine compared to the rest of the industry. LRN outperforms 75.00% of its industry peers.
  • In the last couple of years the Operating Margin of LRN has grown nicely.

Health Assessment of NYSE:LRN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:LRN has earned a 8 out of 10:

  • An Altman-Z score of 4.51 indicates that LRN is not in any danger for bankruptcy at the moment.
  • LRN has a Altman-Z score of 4.51. This is amongst the best in the industry. LRN outperforms 92.19% 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.
  • LRN's Debt to FCF ratio of 3.02 is amongst the best of the industry. LRN outperforms 82.81% of its industry peers.
  • A Debt/Equity ratio of 0.43 indicates that LRN is not too dependend on debt financing.
  • A Current Ratio of 4.52 indicates that LRN has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 4.52, LRN belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
  • LRN has a Quick Ratio of 4.44. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of LRN (4.44) is better than 90.63% of its industry peers.

A Closer Look at Growth for NYSE:LRN

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NYSE:LRN, the assigned 7 reflects its growth potential:

  • LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.96%, which is quite impressive.
  • LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
  • Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 10.13% in the last year.
  • 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 very strong growth in Earnings Per Share. The EPS will grow by 20.92% on average per year.
  • The Revenue is expected to grow by 8.78% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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 (5/28/2024, 9:01:56 AM)

70.62

-0.29 (-0.41%)

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