NYSE:LRN is not too expensive for the growth it is showing.

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

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.
• LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.60% yearly.
• LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.13%.
• 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 20.92% yearly.
• LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.78% yearly.

Evaluating Valuation: NYSE:LRN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:LRN boasts a 7 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's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.93.
• Based on the Price/Forward Earnings ratio, LRN is valued cheaper than 82.81% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.41, LRN is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
• Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 78.13% of the companies in the same industry.
• The 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.

Understanding NYSE:LRN's Health Score

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 8 out of 10:

• LRN has an Altman-Z score of 4.40. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
• LRN has a better Altman-Z score (4.40) than 90.63% of its industry peers.
• LRN has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as LRN would need 3.02 years to pay back of all of its debts.
• LRN's Debt to FCF ratio of 3.02 is amongst the best of the industry. LRN outperforms 81.25% 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.
• Looking at the Current ratio, with a value of 4.52, LRN belongs to the top 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.
• LRN has a Quick ratio of 4.44. This is amongst the best in the industry. LRN outperforms 90.63% of its industry peers.

Analyzing Profitability Metrics

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

• LRN has a Return On Assets of 9.57%. This is amongst the best in the industry. LRN outperforms 89.06% of its industry peers.
• LRN's Return On Equity of 16.52% is amongst the best of the industry. LRN outperforms 87.50% of its industry peers.
• LRN has a Return On Invested Capital of 10.16%. This is amongst the best in the industry. LRN outperforms 85.94% of its industry peers.
• 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 better Profit Margin (8.80%) than 85.94% of its industry peers.
• In the last couple of years the Profit Margin of LRN has grown nicely.
• LRN has a better Operating Margin (11.02%) than 73.44% of its industry peers.
• LRN's Operating Margin has improved in the last couple of years.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

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.