STRIDE INC (NYSE:LRN) Stands Out as an Affordable Growth Stock

Investors looking for growth chances at fair prices often use filtering methods to find companies with good financial foundations that are not too costly. The "Affordable Growth" method focuses on stocks showing steady growth paths while keeping good financial condition and profit measures, all at prices that do not seem high. This process helps investors prevent paying too much for growth while still finding companies with room to increase.

STRIDE INC (NYSE:LRN) appears as a notable option from this kind of filtering, especially because of its place in the changing educational technology field. The company offers education services that use technology, covering K-12 schooling, career education, and professional skills development via its full platform that helps students with curriculum, systems, teaching, and support services.

Growth Path

The growth part is important in affordable growth investing, as it finds companies increasing their activities and market standing. Stride shows good growth features that fit this method:

• Earnings Per Share has increased by 20% over the previous year and displays a notable 58% average yearly increase over recent years
• Revenue rose by 17.9% in the last year with an 18.24% average yearly growth rate
• Future estimates predict ongoing EPS increase of 18.94% and revenue growth of 9.06% per year

While the growth path shows some slowing from past highs, the company keeps solid increase rates that are better than many others in the industry. The educational technology field's continuing change offers a positive setting for ongoing growth, especially as digital learning options become more widely used.

Valuation Check

The valuation part acts as the "affordable" part of this method, making sure investors do not pay too much for growth. Stride offers a balanced valuation view:

• Trading at a P/E ratio of 23.26, placed lower than 62% of industry others
• Forward P/E of 16.32 seems more appealing, less expensive than 69% of others
• Enterprise Value to EBITDA ratio shows a less expensive valuation than 68% of industry companies
• Price/Free Cash Flow ratio is lower than 74% of sector peers

The valuation numbers indicate Stride is not too highly priced compared to its growth outlook, particularly when thinking about future earnings estimates. The PEG ratio, which changes the P/E for growth, suggests the stock could be fairly valued considering its earnings growth possibility.

Profitability Level

Profitability measures give a view of how well a company turns revenue into earnings, a key element for lasting growth. Stride does well here with very good performance:

• Return on Assets of 12.55% is better than 91% of industry others
• Return on Equity of 19.46% is higher than 86% of others
• Return on Invested Capital of 15.98% beats 94% of sector companies
• Operating margin of 17.44% is above 81% of industry peers
• Profit margin of 11.97% is more than 74% of others

These very good profitability measures give assurance that the company's growth is creating important gains for shareholders instead of only increasing total revenue without profit results.

Financial Condition

Financial condition makes sure a company can handle economic drops and keep paying for growth plans. Stride shows solid financial status:

• Altman-Z score of 7.80 shows very low bankruptcy danger and is better than 95% of industry others
• Current ratio of 5.39 and quick ratio of 5.27 offer large cash safety net
• Debt to Equity ratio of 0.31 shows balanced borrowing
• Debt to Free Cash Flow ratio of 1.35 indicates fast debt payback ability

The good balance sheet and cash position give Stride the ability to handle market difficulties while still putting money into growth chances.

Investment Points

Stride's mix of steady growth, very good profitability, and fair valuation matches the affordable growth investment method. The company works in the education technology sector, which keeps seeing digital change support. While revenue growth forecasts have slowed from past levels, the expected growth rates stay healthy, especially when combined with the company's very good profitability measures.

The full fundamental analysis report gives more information on these numbers and what they mean for investors. The total fundamental rating of 7 out of 10 shows a balanced profile with special skill in profitability and financial condition.

For investors wanting to find similar chances, other affordable growth options can be found using the specialized filtering tool that shows companies meeting these specific needs.

Disclaimer: This analysis uses fundamental data and filtering methods for information only. It is not investment advice, and investors should do their own research and think about their personal money situation before making investment choices.