STRIDE INC (LRN) Stock Fundamental Analysis
NYSE:LRN - New York Stock Exchange, Inc. - US86333M1080 - Common Stock - Currency: USD
Taking everything into account, LRN scores 7 out of 10 in our fundamental rating. LRN was compared to 72 industry peers in the Diversified Consumer Services industry. LRN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LRN is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, LRN could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
LRN had positive earnings in the past year.
In the past year LRN had a positive cash flow from operations.
LRN had positive earnings in each of the past 5 years.
In the past 5 years LRN always reported a positive cash flow from operatings.
1.2 Ratios
LRN's Return On Assets of 13.56% is amongst the best of the industry. LRN outperforms 90.28% of its industry peers.
The Return On Equity of LRN (21.12%) is better than 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.55%, LRN belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
LRN had an Average Return On Invested Capital over the past 3 years of 9.47%. This is in line with the industry average of 10.35%.
The last Return On Invested Capital (14.55%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.56% | ||
| ROE | 21.12% | ||
| ROIC | 14.55% |
ROA(3y)8.12%
ROA(5y)6.23%
ROE(3y)14.65%
ROE(5y)11.29%
ROIC(3y)9.47%
ROIC(5y)7.52%
1.3 Margins
With an excellent Profit Margin value of 13.10%, LRN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of LRN has grown nicely.
With an excellent Operating Margin value of 16.49%, LRN belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
In the last couple of years the Operating Margin of LRN has grown nicely.
Looking at the Gross Margin, with a value of 39.08%, LRN is in line with its industry, outperforming 45.83% of the companies in the same industry.
LRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.49% | ||
| PM (TTM) | 13.1% | ||
| GM | 39.08% |
OM growth 3Y19.4%
OM growth 5Y22.26%
PM growth 3Y29.12%
PM growth 5Y22.27%
GM growth 3Y2.45%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LRN is still creating some value.
Compared to 1 year ago, LRN has more shares outstanding
Compared to 5 years ago, LRN has more shares outstanding
LRN has a better debt/assets ratio than last year.
2.2 Solvency
LRN has an Altman-Z score of 7.08. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.08, LRN belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of LRN is 2.09, which is a good value as it means it would take LRN, 2.09 years of fcf income to pay off all of its debts.
LRN has a better Debt to FCF ratio (2.09) than 77.78% of its industry peers.
LRN has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
LRN has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 7.08 |
ROIC/WACC1.76
WACC8.26%
2.3 Liquidity
LRN has a Current Ratio of 5.61. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (5.61) is better than 93.06% of its industry peers.
LRN has a Quick Ratio of 5.53. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
LRN has a Quick ratio of 5.53. This is amongst the best in the industry. LRN outperforms 93.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.61 | ||
| Quick Ratio | 5.53 |
3. Growth
3.1 Past
LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.47%, 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.
The Revenue has grown by 14.90% in the past year. This is quite good.
LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.97% yearly.
EPS 1Y (TTM)50.47%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%26.25%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%17.77%
3.2 Future
The Earnings Per Share is expected to grow by 21.50% on average over the next years. This is a very strong growth
LRN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.82% yearly.
EPS Next Y44.56%
EPS Next 2Y26.61%
EPS Next 3Y21.5%
EPS Next 5YN/A
Revenue Next Year16.8%
Revenue Next 2Y12.49%
Revenue Next 3Y11.03%
Revenue Next 5Y10.82%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.00, which indicates a rather expensive current valuation of LRN.
Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 69.44% of the companies in the same industry.
When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (27.03), we can say LRN is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.13 indicates a rather expensive valuation of LRN.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than 65.28% of the companies in the same industry.
LRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 17.13 |
4.2 Price Multiples
LRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRN is cheaper than 69.44% 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 70.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.79 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
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.
A more expensive valuation may be justified as LRN's earnings are expected to grow with 21.50% in the coming years.
PEG (NY)0.45
PEG (5Y)0.51
EPS Next 2Y26.61%
EPS Next 3Y21.5%
5. Dividend
5.1 Amount
LRN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.23
-2.08 (-1.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners112.37%
Inst Owner Change-3.34%
Ins Owners2.68%
Ins Owner Change2%
Market Cap5.58B
Analysts83.64
Price Target165.71 (29.23%)
Short Float %10.28%
Short Ratio6.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.39%
Min EPS beat(2)-0.5%
Max EPS beat(2)3.28%
EPS beat(4)3
Avg EPS beat(4)86.24%
Min EPS beat(4)-0.5%
Max EPS beat(4)331.54%
EPS beat(8)7
Avg EPS beat(8)64.82%
EPS beat(12)10
Avg EPS beat(12)21.41%
EPS beat(16)13
Avg EPS beat(16)22.68%
Revenue beat(2)2
Avg Revenue beat(2)2.53%
Min Revenue beat(2)2.13%
Max Revenue beat(2)2.93%
Revenue beat(4)4
Avg Revenue beat(4)3.46%
Min Revenue beat(4)0.58%
Max Revenue beat(4)8.2%
Revenue beat(8)7
Avg Revenue beat(8)3.08%
Revenue beat(12)11
Avg Revenue beat(12)3.02%
Revenue beat(16)15
Avg Revenue beat(16)3.24%
PT rev (1m)0%
PT rev (3m)13.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.44%
EPS NY rev (1m)0%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20 | ||
| Fwd PE | 17.13 | ||
| P/S | 2.44 | ||
| P/FCF | 22.79 | ||
| P/OCF | 18.2 | ||
| P/B | 3.94 | ||
| P/tB | 5.66 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)6.41
EY5%
EPS(NY)7.49
Fwd EY5.84%
FCF(TTM)5.63
FCFY4.39%
OCF(TTM)7.05
OCFY5.5%
SpS52.52
BVpS32.57
TBVpS22.64
PEG (NY)0.45
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.56% | ||
| ROE | 21.12% | ||
| ROCE | 19.44% | ||
| ROIC | 14.55% | ||
| ROICexc | 23.21% | ||
| ROICexgc | 36.04% | ||
| OM | 16.49% | ||
| PM (TTM) | 13.1% | ||
| GM | 39.08% | ||
| FCFM | 10.71% |
ROA(3y)8.12%
ROA(5y)6.23%
ROE(3y)14.65%
ROE(5y)11.29%
ROIC(3y)9.47%
ROIC(5y)7.52%
ROICexc(3y)14.4%
ROICexc(5y)11.23%
ROICexgc(3y)26.36%
ROICexgc(5y)21.09%
ROCE(3y)12.66%
ROCE(5y)10.14%
ROICexcg growth 3Y21.6%
ROICexcg growth 5Y11.49%
ROICexc growth 3Y26.37%
ROICexc growth 5Y16.18%
OM growth 3Y19.4%
OM growth 5Y22.26%
PM growth 3Y29.12%
PM growth 5Y22.27%
GM growth 3Y2.45%
GM growth 5Y1.54%
F-Score7
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 54.87% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 42.95 | ||
| Cash Conversion | 62.64% | ||
| Profit Quality | 81.78% | ||
| Current Ratio | 5.61 | ||
| Quick Ratio | 5.53 | ||
| Altman-Z | 7.08 |
F-Score7
WACC8.26%
ROIC/WACC1.76
Cap/Depr(3y)62.27%
Cap/Depr(5y)61.45%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.69%
Profit Quality(3y)114.31%
Profit Quality(5y)120.41%
High Growth Momentum
Growth
EPS 1Y (TTM)50.47%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%26.25%
EPS Next Y44.56%
EPS Next 2Y26.61%
EPS Next 3Y21.5%
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%17.77%
Revenue Next Year16.8%
Revenue Next 2Y12.49%
Revenue Next 3Y11.03%
Revenue Next 5Y10.82%
EBIT growth 1Y63.97%
EBIT growth 3Y31.23%
EBIT growth 5Y40.56%
EBIT Next Year102.61%
EBIT Next 3Y35.59%
EBIT Next 5Y25.2%
FCF growth 1Y51.48%
FCF growth 3Y38.43%
FCF growth 5Y18.44%
OCF growth 1Y32.37%
OCF growth 3Y27.61%
OCF growth 5Y14.51%