LRN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 76 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LRN. With these ratings, LRN could be worth investigating further for value and quality investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 (13.54%) is better than 88.16% of its industry peers.
The Return On Equity of LRN (20.68%) is better than 85.53% of its industry peers.
LRN has a better Return On Invested Capital (16.01%) than 93.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LRN is in line with the industry average of 10.15%.
The 3 year average ROIC (11.97%) for LRN is below the current ROIC(16.01%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	13.54%
ROE	20.68%
ROIC	16.01%

ROA(3y)10.13%

ROA(5y)8.29%

ROE(3y)16.74%

ROE(5y)14.46%

ROIC(3y)11.97%

ROIC(5y)10.27%

1.3 Margins

LRN has a better Profit Margin (12.76%) than 77.63% of its industry peers.
LRN's Profit Margin has improved in the last couple of years.
LRN has a Operating Margin of 17.83%. This is amongst the best in the industry. LRN outperforms 80.26% of its industry peers.
LRN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.20%, LRN is in line with its industry, outperforming 44.74% of the companies in the same industry.
LRN's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	17.83%
PM (TTM)	12.76%
GM	39.2%

OM growth 3Y23.39%

OM growth 5Y41.07%

PM growth 3Y23.52%

PM growth 5Y38.44%

GM growth 3Y3.53%

GM growth 5Y3.28%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LRN is creating value.
LRN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for LRN has been increased compared to 5 years ago.
LRN has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 5.35 indicates that LRN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.35, LRN belongs to the top of the industry, outperforming 90.79% of the companies in the same industry.
The Debt to FCF ratio of LRN is 1.74, which is an excellent value as it means it would take LRN, only 1.74 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.74, LRN belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that LRN is not too dependend on debt financing.
LRN has a Debt to Equity ratio (0.32) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.32
Debt/FCF	1.74
Altman-Z	5.35

ROIC/WACC2.03

WACC7.9%

2.3 Liquidity

A Current Ratio of 6.77 indicates that LRN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.77, LRN belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
A Quick Ratio of 6.69 indicates that LRN has no problem at all paying its short term obligations.
LRN has a Quick ratio of 6.69. This is amongst the best in the industry. LRN outperforms 97.37% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.77
Quick Ratio	6.69

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.82%, which is quite good.
The Earnings Per Share has been growing by 58.07% 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 17.25% in the last year.
Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 18.24% on average per year.

EPS 1Y (TTM)17.82%

EPS 3Y33.5%

EPS 5Y58.07%

EPS Q2Q%48.94%

Revenue 1Y (TTM)17.25%

Revenue growth 3Y12.56%

Revenue growth 5Y18.24%

Sales Q2Q%12.67%

3.2 Future

The Earnings Per Share is expected to grow by 12.74% on average over the next years. This is quite good.
LRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.21% yearly.

EPS Next Y26.61%

EPS Next 2Y17.44%

EPS Next 3Y12.74%

EPS Next 5YN/A

Revenue Next Year5.8%

Revenue Next 2Y5.3%

Revenue Next 3Y4.99%

Revenue Next 5Y4.21%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.31, the valuation of LRN can be described as very reasonable.
Based on the Price/Earnings ratio, LRN is valued cheaply inside the industry as 81.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of LRN to the average of the S&P500 Index (27.21), we can say LRN is valued rather cheaply.
LRN is valuated reasonably with a Price/Forward Earnings ratio of 8.82.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 90.79% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LRN to the average of the S&P500 Index (25.98), we can say LRN is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.31
Fwd PE	8.82

4.2 Price Multiples

88.16% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
LRN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LRN is cheaper than 88.16% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	10.29
EV/EBITDA	5.1

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.
LRN's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.