STRIDE INC (LRN)

US86333M1080 - Common Stock

63.32  +0.02 (+0.03%)

Fundamental Rating

7

Overall LRN gets a fundamental rating of 7 out of 10. We evaluated LRN against 65 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 growing strongly while it also seems undervalued. This is an interesting combination This makes LRN very considerable for value and growth and quality investing!



8

1. Profitability

1.1 Basic Checks

LRN had positive earnings in the past year.
LRN had a positive operating cash flow in the past year.
Each year in the past 5 years LRN has been profitable.
In the past 5 years LRN always reported a positive cash flow from operatings.

1.2 Ratios

LRN has a Return On Assets of 9.57%. This is amongst the best in the industry. LRN outperforms 89.06% of its industry peers.
With an excellent Return On Equity value of 16.52%, LRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.16%, LRN belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LRN is significantly below the industry average of 15.19%.
The last Return On Invested Capital (10.16%) for LRN is above the 3 year average (7.75%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 9.57%
ROE 16.52%
ROIC 10.16%
ROA(3y)6.08%
ROA(5y)5.02%
ROE(3y)11.82%
ROE(5y)8.99%
ROIC(3y)7.75%
ROIC(5y)6.19%

1.3 Margins

LRN has a better Profit Margin (8.80%) than 85.94% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN's Operating Margin of 11.02% is fine compared to the rest of the industry. LRN outperforms 73.44% of its industry peers.
In the last couple of years the Operating Margin of LRN has grown nicely.
With a Gross Margin value of 37.21%, LRN is not doing good in the industry: 67.19% of the companies in the same industry are doing better.
LRN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 11.02%
PM (TTM) 8.8%
GM 37.21%
OM growth 3Y42.35%
OM growth 5Y26.52%
PM growth 3Y43.15%
PM growth 5Y18.08%
GM growth 3Y1.79%
GM growth 5Y-0.12%

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2. Health

2.1 Basic Checks

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

2.2 Solvency

An Altman-Z score of 4.59 indicates that LRN is not in any danger for bankruptcy at the moment.
LRN has a better Altman-Z score (4.59) than 92.19% of its industry peers.
The Debt to FCF ratio of LRN is 3.02, which is a good value as it means it would take LRN, 3.02 years of fcf income to pay off all of its debts.
LRN's Debt to FCF ratio of 3.02 is amongst the best of the industry. LRN outperforms 81.25% of its industry peers.
LRN has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, LRN perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 3.02
Altman-Z 4.59
ROIC/WACC1.31
WACC7.73%

2.3 Liquidity

LRN has a Current Ratio of 4.52. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (4.52) is better than 90.63% of its industry peers.
A Quick Ratio of 4.44 indicates that LRN has no problem at all paying its short term obligations.
LRN's Quick ratio of 4.44 is amongst the best of the industry. LRN outperforms 90.63% of its industry peers.
Industry RankSector Rank
Current Ratio 4.52
Quick Ratio 4.44

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 69.96% 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 34.60% on average per year.
LRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.13%.
LRN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.89% yearly.
EPS 1Y (TTM)69.96%
EPS 3Y69.3%
EPS 5Y34.6%
EPS growth Q2Q29.41%
Revenue 1Y (TTM)10.13%
Revenue growth 3Y20.86%
Revenue growth 5Y14.89%
Revenue growth Q2Q10.13%

3.2 Future

Based on estimates for the next years, LRN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.92% on average per year.
Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 8.78% on average per year.
EPS Next Y44.56%
EPS Next 2Y26.74%
EPS Next 3Y20.92%
EPS Next 5YN/A
Revenue Next Year11.39%
Revenue Next 2Y9.3%
Revenue Next 3Y8.78%
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 15.99, LRN is valued correctly.
LRN's Price/Earnings ratio is a bit cheaper when compared to the industry. LRN is cheaper than 75.00% of the companies in the same industry.
LRN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.32, the valuation of LRN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LRN indicates a rather cheap valuation: LRN is cheaper than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, LRN is valued a bit cheaper.
Industry RankSector Rank
PE 15.99
Fwd PE 13.32

4.2 Price Multiples

76.56% of the companies in the same industry are more expensive than LRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LRN is valued a bit cheaper than 78.13% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.34
EV/EBITDA 8.83

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.
LRN's earnings are expected to grow with 20.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)0.46
EPS Next 2Y26.74%
EPS Next 3Y20.92%

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5. Dividend

5.1 Amount

LRN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

STRIDE INC

NYSE:LRN (3/28/2024, 11:24:00 AM)

63.32

+0.02 (+0.03%)

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 Cap2.75B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 15.99
Fwd PE 13.32
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)0.36
PEG (5Y)0.46
Profitability
Industry RankSector Rank
ROA 9.57%
ROE 16.52%
ROCE
ROIC
ROICexc
ROICexgc
OM 11.02%
PM (TTM) 8.8%
GM 37.21%
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 Turnover1.09
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 4.52
Quick Ratio 4.44
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)
Growth
EPS 1Y (TTM)69.96%
EPS 3Y69.3%
EPS 5Y
EPS growth Q2Q
EPS Next Y44.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.13%
Revenue growth 3Y20.86%
Revenue growth 5Y
Revenue growth 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
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EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y