STRIDE INC (LRN) Stock Fundamental Analysis
NYSE:LRN - New York Stock Exchange, Inc. - US86333M1080 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to LRN. LRN was compared to 73 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making LRN a very profitable company, without any liquidiy or solvency issues. 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.
In the past year LRN had a positive cash flow from operations.
Each year in the past 5 years LRN has been profitable.
Each year in the past 5 years LRN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.03%, LRN belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
LRN's Return On Equity of 20.46% is amongst the best of the industry. LRN outperforms 87.67% of its industry peers.
With an excellent Return On Invested Capital value of 13.60%, LRN belongs to the best of the industry, outperforming 90.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LRN is below the industry average of 11.99%.
The last Return On Invested Capital (13.60%) for LRN is above the 3 year average (9.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 20.46% | ||
| ROIC | 13.6% |
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 has a Profit Margin of 12.30%. This is amongst the best in the industry. LRN outperforms 84.93% of its industry peers.
In the last couple of years the Profit Margin of LRN has grown nicely.
LRN's Operating Margin of 15.25% is amongst the best of the industry. LRN outperforms 80.82% of its industry peers.
In the last couple of years the Operating Margin of LRN has grown nicely.
LRN's Gross Margin of 38.54% is in line compared to the rest of the industry. LRN outperforms 42.47% of its industry peers.
LRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 12.3% | ||
| GM | 38.54% |
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
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 7.67 indicates that LRN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.67, LRN belongs to the top of the industry, outperforming 91.78% of the companies in the same industry.
The Debt to FCF ratio of LRN is 1.96, which is an excellent value as it means it would take LRN, only 1.96 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.96, LRN belongs to the top of the industry, outperforming 82.19% of the companies in the same industry.
LRN has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
LRN has a Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 7.67 |
ROIC/WACC1.57
WACC8.64%
2.3 Liquidity
A Current Ratio of 6.02 indicates that LRN has no problem at all paying its short term obligations.
The Current ratio of LRN (6.02) is better than 93.15% of its industry peers.
A Quick Ratio of 5.93 indicates that LRN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.93, LRN belongs to the best of the industry, outperforming 93.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.02 | ||
| Quick Ratio | 5.93 |
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.
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.
Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 11.03% in the last year.
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)11.03%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%17.77%
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 20.90% 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 9.53% on average per year.
EPS Next Y42.69%
EPS Next 2Y25.31%
EPS Next 3Y20.9%
EPS Next 5YN/A
Revenue Next Year15.1%
Revenue Next 2Y10.95%
Revenue Next 3Y10.19%
Revenue Next 5Y9.53%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.51 indicates a rather expensive valuation of LRN.
Based on the Price/Earnings ratio, LRN is valued a bit cheaper than the industry average as 64.38% of the companies are valued more expensively.
LRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.85, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.55 indicates a rather expensive valuation of LRN.
63.01% of the companies in the same industry are more expensive than LRN, based on the Price/Forward Earnings ratio.
LRN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LRN is valued a bit cheaper than the industry average as 60.27% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LRN indicates a somewhat cheap valuation: LRN is cheaper than 68.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.26 | ||
| EV/EBITDA | 12.99 |
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.
A more expensive valuation may be justified as LRN's earnings are expected to grow with 20.90% in the coming years.
PEG (NY)0.55
PEG (5Y)0.6
EPS Next 2Y25.31%
EPS Next 3Y20.9%
5. Dividend
5.1 Amount
LRN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
150.7
+8.45 (+5.94%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners114.95%
Inst Owner Change1.21%
Ins Owners2.78%
Ins Owner Change-1.12%
Market Cap6.56B
Analysts82.22
Price Target146.63 (-2.7%)
Short Float %10.16%
Short Ratio5.96
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)2
Avg EPS beat(2)167.41%
Min EPS beat(2)3.28%
Max EPS beat(2)331.54%
EPS beat(4)4
Avg EPS beat(4)89.1%
Min EPS beat(4)3.28%
Max EPS beat(4)331.54%
EPS beat(8)8
Avg EPS beat(8)67.46%
EPS beat(12)11
Avg EPS beat(12)23.16%
EPS beat(16)14
Avg EPS beat(16)24.03%
Revenue beat(2)2
Avg Revenue beat(2)5.17%
Min Revenue beat(2)2.13%
Max Revenue beat(2)8.2%
Revenue beat(4)4
Avg Revenue beat(4)3.15%
Min Revenue beat(4)0.58%
Max Revenue beat(4)8.2%
Revenue beat(8)7
Avg Revenue beat(8)2.96%
Revenue beat(12)11
Avg Revenue beat(12)2.91%
Revenue beat(16)15
Avg Revenue beat(16)3.18%
PT rev (1m)9.32%
PT rev (3m)46.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.1%
EPS NY rev (1m)0%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 20.55 | ||
| P/S | 2.99 | ||
| P/FCF | 25.26 | ||
| P/OCF | 20.37 | ||
| P/B | 4.98 | ||
| P/tB | 7.41 | ||
| EV/EBITDA | 12.99 |
EPS(TTM)6.41
EY4.25%
EPS(NY)7.33
Fwd EY4.87%
FCF(TTM)5.97
FCFY3.96%
OCF(TTM)7.4
OCFY4.91%
SpS50.36
BVpS30.27
TBVpS20.33
PEG (NY)0.55
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 20.46% | ||
| ROCE | 18.17% | ||
| ROIC | 13.6% | ||
| ROICexc | 22.29% | ||
| ROICexgc | 36.28% | ||
| OM | 15.25% | ||
| PM (TTM) | 12.3% | ||
| GM | 38.54% | ||
| FCFM | 11.84% |
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 Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 56.31% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 41.42 | ||
| Cash Conversion | 72.36% | ||
| Profit Quality | 96.31% | ||
| Current Ratio | 6.02 | ||
| Quick Ratio | 5.93 | ||
| Altman-Z | 7.67 |
F-Score7
WACC8.64%
ROIC/WACC1.57
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 Y42.69%
EPS Next 2Y25.31%
EPS Next 3Y20.9%
EPS Next 5YN/A
Revenue 1Y (TTM)11.03%
Revenue growth 3Y9.9%
Revenue growth 5Y14.97%
Sales Q2Q%17.77%
Revenue Next Year15.1%
Revenue Next 2Y10.95%
Revenue Next 3Y10.19%
Revenue Next 5Y9.53%
EBIT growth 1Y56.46%
EBIT growth 3Y31.23%
EBIT growth 5Y40.56%
EBIT Next Year96.56%
EBIT Next 3Y33.21%
EBIT Next 5Y23.21%
FCF growth 1Y56.07%
FCF growth 3Y38.43%
FCF growth 5Y18.44%
OCF growth 1Y34.37%
OCF growth 3Y27.61%
OCF growth 5Y14.51%