STRIDE INC (LRN) Stock Fundamental Analysis
NYSE:LRN - New York Stock Exchange, Inc. - US86333M1080 - Common Stock - Currency: USD
LRN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 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 could make LRN a good candidate 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.
Each year in the past 5 years LRN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LRN (13.56%) is better than 90.14% of its industry peers.
The Return On Equity of LRN (21.12%) is better than 87.32% of its industry peers.
The Return On Invested Capital of LRN (14.55%) is better than 92.96% of its industry peers.
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 10.64%.
The 3 year average ROIC (9.47%) for LRN is below the current ROIC(14.55%), indicating increased profibility in the last year.
| 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
LRN's Profit Margin of 13.10% is amongst the best of the industry. LRN outperforms 83.10% of its industry peers.
LRN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.49%, LRN belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
In the last couple of years the Operating Margin of LRN has grown nicely.
The Gross Margin of LRN (39.08%) is comparable to the rest of the 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.
LRN has more shares outstanding than it did 1 year ago.
LRN has more shares outstanding than it did 5 years ago.
LRN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.36 indicates that LRN is not in any danger for bankruptcy at the moment.
LRN's Altman-Z score of 7.36 is amongst the best of the industry. LRN outperforms 87.32% of its industry peers.
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 78.87% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that LRN is not too dependend on debt financing.
LRN has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: LRN outperforms 45.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | 7.36 |
ROIC/WACC1.73
WACC8.4%
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 92.96% of its industry peers.
A Quick Ratio of 5.53 indicates that LRN has no problem at all paying its short term obligations.
LRN's Quick ratio of 5.53 is amongst the best of the industry. LRN outperforms 92.96% 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
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 21.62, which indicates a rather expensive current valuation of LRN.
Compared to the rest of the industry, the Price/Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 69.01% of the companies listed in the same industry.
LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
LRN is valuated rather expensively with a Price/Forward Earnings ratio of 18.52.
Based on the Price/Forward Earnings ratio, LRN is valued a bit cheaper than the industry average as 69.01% of the companies are valued more expensively.
LRN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
LRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LRN is cheaper than 70.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 67.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.63 | ||
| EV/EBITDA | 11.49 |
4.3 Compensation for Growth
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 21.50% in the coming years.
PEG (NY)0.49
PEG (5Y)0.55
EPS Next 2Y26.61%
EPS Next 3Y21.5%
5. Dividend
5.1 Amount
No dividends for LRN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
138.6
+0.98 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners112.37%
Inst Owner Change-2.33%
Ins Owners2.68%
Ins Owner Change-0.36%
Market Cap6.03B
Analysts83.64
Price Target165.71 (19.56%)
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)0.91%
PT rev (3m)21.24%
EPS NQ rev (1m)6.34%
EPS NQ rev (3m)7.39%
EPS NY rev (1m)1.68%
EPS NY rev (3m)1.31%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)3.2%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 18.52 | ||
| P/S | 2.64 | ||
| P/FCF | 24.63 | ||
| P/OCF | 19.67 | ||
| P/B | 4.26 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 11.49 |
EPS(TTM)6.41
EY4.62%
EPS(NY)7.49
Fwd EY5.4%
FCF(TTM)5.63
FCFY4.06%
OCF(TTM)7.05
OCFY5.08%
SpS52.52
BVpS32.57
TBVpS22.64
PEG (NY)0.49
PEG (5Y)0.55
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 | 7.36 |
F-Score7
WACC8.4%
ROIC/WACC1.73
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%