STRIDE INC (LRN)
US86333M1080 - Common Stock
LRN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 66 industry peers in the Diversified Consumer Services industry. LRN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LRN is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes LRN very considerable 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.
In the past 5 years LRN has always been profitable.
In the past 5 years LRN always reported a positive cash flow from operatings.
1.2 Ratios
LRN has a better Return On Assets (10.63%) than 87.50% of its industry peers.
LRN has a better Return On Equity (17.36%) than 82.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.14%, LRN belongs to the top of the industry, outperforming 85.94% 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 below the industry average of 11.90%.
The last Return On Invested Capital (11.14%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.63% | ||
| ROE | 17.36% | ||
| ROIC | 11.14% |
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
The Profit Margin of LRN (10.01%) is better than 78.13% of its industry peers.
LRN's Profit Margin has improved in the last couple of years.
The Operating Margin of LRN (12.23%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of LRN has grown nicely.
LRN has a worse Gross Margin (37.43%) than 65.63% of its industry peers.
LRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.23% | ||
| PM (TTM) | 10.01% | ||
| GM | 37.43% |
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.
Compared to 1 year ago, LRN has more shares outstanding
LRN has more shares outstanding than it did 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 5.25. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
LRN has a better Altman-Z score (5.25) than 87.50% of its industry peers.
LRN has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as LRN would need 2.17 years to pay back of all of its debts.
LRN's Debt to FCF ratio of 2.17 is fine compared to the rest of the industry. LRN outperforms 76.56% of its industry peers.
LRN has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LRN (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 5.25 |
ROIC/WACC1.44
WACC7.75%
2.3 Liquidity
LRN has a Current Ratio of 5.10. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (5.10) is better than 89.06% of its industry peers.
A Quick Ratio of 4.95 indicates that LRN has no problem at all paying its short term obligations.
The Quick ratio of LRN (4.95) is better than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.1 | ||
| Quick Ratio | 4.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 57.77% over the past year.
Measured over the past years, LRN shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.31% on average per year.
The Revenue has grown by 11.03% 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)57.77%
EPS 3Y39.51%
EPS 5Y39.31%
EPS Q2Q%40.59%
Revenue 1Y (TTM)11.03%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%10.49%
3.2 Future
LRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.65% yearly.
Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 8.52% on average per year.
EPS Next Y7.48%
EPS Next 2Y10.8%
EPS Next 3Y12.65%
EPS Next 5YN/A
Revenue Next Year6.77%
Revenue Next 2Y7.19%
Revenue Next 3Y8.52%
Revenue Next 5YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.49, LRN is valued correctly.
Based on the Price/Earnings ratio, LRN is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
LRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.72.
With a Price/Forward Earnings ratio of 15.35, LRN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 76.56% of the companies listed in the same industry.
LRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 81.25% of the companies listed in the same industry.
71.88% 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 | 15.35 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 12.65% in the coming years.
PEG (NY)2.21
PEG (5Y)0.42
EPS Next 2Y10.8%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
LRN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STRIDE INC
NYSE:LRN (10/8/2024, 5:05:32 PM)
After market: 77.02 0 (0%)77.02
-1.26 (-1.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.49 | ||
| Fwd PE | 15.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.21
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.63% | ||
| ROE | 17.36% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.23% | ||
| PM (TTM) | 10.01% | ||
| GM | 37.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.1 | ||
| Quick Ratio | 4.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)57.77%
EPS 3Y39.51%
EPS 5Y
EPS Q2Q%
EPS Next Y7.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.03%
Revenue growth 3Y9.9%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y