STRIDE INC (LRN) Stock Fundamental Analysis
NYSE:LRN - New York Stock Exchange, Inc. - US86333M1080 - Common Stock - Currency: USD
Overall LRN gets a fundamental rating of 7 out of 10. We evaluated LRN against 72 industry peers in the Diversified Consumer Services industry. LRN gets an excellent profitability rating and is at the same time showing great financial health properties. LRN is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make LRN suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year LRN was profitable.
LRN had a positive operating cash flow in the past year.
LRN had positive earnings in each of the past 5 years.
LRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LRN (13.56%) is better than 90.28% of its industry peers.
LRN's Return On Equity of 21.12% is amongst the best of the industry. LRN outperforms 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.
The Average Return On Invested Capital over the past 3 years for LRN is in line with the industry average of 10.64%.
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
Looking at the Profit Margin, with a value of 13.10%, LRN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
LRN's Profit Margin has improved in the last couple of years.
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.
LRN's Operating Margin has improved in the last couple of years.
LRN's Gross Margin of 39.08% is in line compared to the rest of the industry. LRN outperforms 45.83% of its industry peers.
In the last couple of years the Gross Margin of LRN has grown nicely.
| 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
LRN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LRN has been increased compared to 1 year ago.
The number of shares outstanding for LRN has been increased compared to 5 years ago.
The debt/assets ratio for LRN has been reduced compared to a year ago.
2.2 Solvency
LRN has an Altman-Z score of 7.22. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.22, LRN belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
LRN has a debt to FCF ratio of 2.09. This is a good value and a sign of high solvency as LRN would need 2.09 years to pay back of all of its debts.
LRN has a better Debt to FCF ratio (2.09) than 79.17% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that LRN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, LRN is in line with its industry, outperforming 45.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 7.22 |
ROIC/WACC1.72
WACC8.48%
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.
Looking at the Current ratio, with a value of 5.61, LRN belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
A Quick Ratio of 5.53 indicates that LRN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.53, LRN belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 39.31% on average over the past years. This is a very strong growth
Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 14.90% in the last year.
Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
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
The Revenue is expected to grow by 10.82% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 20.98, LRN is valued on the expensive side.
Based on the Price/Earnings ratio, LRN is valued a bit cheaper than 68.06% of the companies in the same industry.
LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.97, the valuation of LRN can be described as rather expensive.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than the industry average as 68.06% of the companies are valued more expensively.
LRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
69.44% of the companies in the same industry are more expensive than LRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.9 | ||
| EV/EBITDA | 11.13 |
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.
LRN has an outstanding profitability rating, which may justify a higher PE ratio.
LRN's earnings are expected to grow with 21.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.53
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 |
134.49
-1.43 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners112.37%
Inst Owner Change0.09%
Ins Owners2.68%
Ins Owner Change-0.36%
Market Cap5.85B
Analysts83.64
Price Target165.71 (23.21%)
Short Float %9.46%
Short Ratio5.1
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)21.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.39%
EPS NY rev (1m)1.68%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.98 | ||
| Fwd PE | 17.97 | ||
| P/S | 2.56 | ||
| P/FCF | 23.9 | ||
| P/OCF | 19.08 | ||
| P/B | 4.13 | ||
| P/tB | 5.94 | ||
| EV/EBITDA | 11.13 |
EPS(TTM)6.41
EY4.77%
EPS(NY)7.49
Fwd EY5.57%
FCF(TTM)5.63
FCFY4.18%
OCF(TTM)7.05
OCFY5.24%
SpS52.52
BVpS32.57
TBVpS22.64
PEG (NY)0.47
PEG (5Y)0.53
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 | 7.22 |
F-Score7
WACC8.48%
ROIC/WACC1.72
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%