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

By Mill Chart

Last update: Mar 27, 2024

STRIDE INC (NYSE:LRN) has caught the eye of our stock screener as an affordable growth stock. NYSE:LRN is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Looking at the Growth

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.
  • 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.
  • 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.
  • The Earnings Per Share is expected to grow by 20.92% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 8.78% on average over the next years. This is quite good.

Deciphering NYSE:LRN's Valuation Rating

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:LRN, the assigned 7 reflects its valuation:

  • LRN's Price/Earnings ratio is a bit cheaper when compared to the industry. LRN is cheaper than 75.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.05, LRN is valued a bit cheaper.
  • LRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LRN is cheaper than 79.69% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (22.42), we can say LRN is valued slightly cheaper.
  • 78.13% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
  • 78.13% 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.
  • The excellent profitability rating of LRN may justify a higher PE ratio.
  • LRN's earnings are expected to grow with 20.92% in the coming years. This may justify a more expensive valuation.

Health Analysis for NYSE:LRN

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:LRN has achieved a 8 out of 10:

  • An Altman-Z score of 4.59 indicates that LRN is not in any danger for bankruptcy at the moment.
  • LRN has a better Altman-Z score (4.59) than 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.
  • With an excellent Debt to FCF ratio value of 3.02, LRN belongs to the best of the industry, outperforming 81.25% 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.
  • LRN has a Current Ratio of 4.52. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
  • LRN has a Current ratio of 4.52. This is amongst the best in the industry. LRN outperforms 90.63% of its industry peers.
  • 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.
  • With an excellent Quick ratio value of 4.44, LRN belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:LRN, the assigned 8 is noteworthy for profitability:

  • Looking at the Return On Assets, with a value of 9.57%, LRN belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 16.52%, LRN belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • LRN has a better Return On Invested Capital (10.16%) 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 85.94% of its industry peers.
  • LRN's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 11.02%, LRN is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
  • 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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STRIDE INC

NYSE:LRN (5/24/2024, 7:04:00 PM)

After market: 70.91 0 (0%)

70.91

-0.54 (-0.76%)

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