Investors seeking growth at a reasonable cost should explore STRIDE INC (NYSE:LRN).

Consider STRIDE INC (NYSE:LRN) as an affordable growth stock, identified by our stock screening tool. LRN is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Evaluating Growth: LRN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. LRN scores a 7 out of 10:

• LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.26%, which is quite impressive.
• LRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 39.31% yearly.
• Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 13.13% in the last year.
• LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
• Based on estimates for the next years, LRN will show a very strong growth in Earnings Per Share. The EPS will grow by 21.45% on average per year.
• Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 9.54% on average per year.

Understanding LRN's Valuation Score

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. LRN has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, LRN is valued a bit cheaper than the industry average as 64.79% of the companies are valued more expensively.
• When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (28.48), we can say LRN is valued slightly cheaper.
• Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than the industry average as 74.65% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.58, LRN is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than 69.01% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
• The 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 21.45% in the coming years. This may justify a more expensive valuation.

Health Examination for LRN

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. LRN has earned a 8 out of 10:

• An Altman-Z score of 6.95 indicates that LRN is not in any danger for bankruptcy at the moment.
• LRN has a Altman-Z score of 6.95. This is amongst the best in the industry. LRN outperforms 94.37% of its industry peers.
• LRN has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
• LRN's Debt to FCF ratio of 1.96 is fine compared to the rest of the industry. LRN outperforms 78.87% of its industry peers.
• A Debt/Equity ratio of 0.35 indicates that LRN is not too dependend on debt financing.
• A Current Ratio of 6.02 indicates that LRN has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 6.02, LRN belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
• LRN has a Quick Ratio of 5.93. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of LRN (5.93) is better than 92.96% of its industry peers.

Understanding LRN's Profitability

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. LRN has earned a 8 out of 10:

• LRN has a Return On Assets of 13.03%. This is amongst the best in the industry. LRN outperforms 91.55% of its industry peers.
• With an excellent Return On Equity value of 20.46%, LRN belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 13.60%, LRN belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
• The last Return On Invested Capital (13.60%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 12.30%, LRN belongs to the best of the industry, outperforming 83.10% of the companies in the same industry.
• LRN's Profit Margin has improved in the last couple of years.
• LRN's Operating Margin of 15.25% is amongst the best of the industry. LRN outperforms 80.28% of its industry peers.
• In the last couple of years the Operating Margin of LRN has grown nicely.
• LRN's Gross Margin has improved in the last couple of years.

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

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

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.