STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA - US86272C1036 - Common Stock
83 USD
+0.15 (+0.18%)
83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to STRA. STRA was compared to 72 industry peers in the Diversified Consumer Services industry. STRA is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. STRA has a decent growth rate and is not valued too expensively. STRA also has an excellent dividend rating. These ratings would make STRA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year STRA was profitable.
In the past year STRA had a positive cash flow from operations.
Each year in the past 5 years STRA has been profitable.
STRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STRA has a Return On Assets of 5.51%. This is in the better half of the industry: STRA outperforms 69.44% of its industry peers.
With a Return On Equity value of 6.91%, STRA perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
STRA has a Return On Invested Capital of 6.35%. This is in the better half of the industry: STRA outperforms 72.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STRA is significantly below the industry average of 9.88%.
The last Return On Invested Capital (6.35%) for STRA is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 6.91% | ||
| ROIC | 6.35% |
ROA(3y)3.65%
ROA(5y)3.42%
ROE(3y)4.62%
ROE(5y)4.4%
ROIC(3y)4.24%
ROIC(5y)4.18%
1.3 Margins
The Profit Margin of STRA (9.27%) is better than 69.44% of its industry peers.
STRA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.50%, STRA is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
In the last couple of years the Operating Margin of STRA has remained more or less at the same level.
The Gross Margin of STRA (47.36%) is comparable to the rest of the industry.
STRA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.5% | ||
| PM (TTM) | 9.27% | ||
| GM | 47.36% |
OM growth 3Y9.44%
OM growth 5Y-0.54%
PM growth 3Y23.79%
PM growth 5Y2.58%
GM growth 3Y0.31%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRA is destroying value.
Compared to 1 year ago, STRA has more shares outstanding
The number of shares outstanding for STRA has been increased compared to 5 years ago.
There is no outstanding debt for STRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
STRA has an Altman-Z score of 3.86. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
STRA has a Altman-Z score of 3.86. This is amongst the best in the industry. STRA outperforms 80.56% of its industry peers.
There is no outstanding debt for STRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.72
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
STRA's Current ratio of 1.26 is in line compared to the rest of the industry. STRA outperforms 51.39% of its industry peers.
STRA has a Quick Ratio of 1.26. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
STRA's Quick ratio of 1.26 is in line compared to the rest of the industry. STRA outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
STRA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.14%.
The Earnings Per Share has been decreasing by -6.07% on average over the past years.
STRA shows a small growth in Revenue. In the last year, the Revenue has grown by 4.31%.
The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)3.14%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%14.29%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%2.95%
3.2 Future
Based on estimates for the next years, STRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.66% on average per year.
Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
EPS Next Y17.64%
EPS Next 2Y16.26%
EPS Next 3Y16.66%
EPS Next 5YN/A
Revenue Next Year3.21%
Revenue Next 2Y3.66%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.81 indicates a correct valuation of STRA.
77.78% of the companies in the same industry are more expensive than STRA, based on the Price/Earnings ratio.
STRA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 12.61, STRA is valued correctly.
Based on the Price/Forward Earnings ratio, STRA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
STRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
STRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STRA is cheaper than 75.00% of the companies in the same industry.
79.17% of the companies in the same industry are more expensive than STRA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 8.39 |
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.
STRA has a very decent profitability rating, which may justify a higher PE ratio.
STRA's earnings are expected to grow with 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, STRA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.60, STRA pays a better dividend. On top of this STRA pays more dividend than 94.44% of the companies listed in the same industry.
STRA's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of STRA has a limited annual growth rate of 2.49%.
STRA has been paying a dividend for at least 10 years, so it has a reliable track record.
STRA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.49%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
STRA pays out 50.95% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of STRA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.95%
EPS Next 2Y16.26%
EPS Next 3Y16.66%
83
+0.15 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.77%
Inst Owner Change0.61%
Ins Owners3.03%
Ins Owner Change2.45%
Market Cap1.98B
Analysts84.44
Price Target101.32 (22.07%)
Short Float %2.92%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP50.95%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.78%
Min EPS beat(2)3.97%
Max EPS beat(2)35.59%
EPS beat(4)4
Avg EPS beat(4)20.38%
Min EPS beat(4)0.41%
Max EPS beat(4)41.57%
EPS beat(8)8
Avg EPS beat(8)26.91%
EPS beat(12)11
Avg EPS beat(12)20.19%
EPS beat(16)12
Avg EPS beat(16)12.35%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-0.61%
Revenue beat(12)1
Avg Revenue beat(12)-0.96%
Revenue beat(16)1
Avg Revenue beat(16)-1.59%
PT rev (1m)-3.25%
PT rev (3m)-3.25%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 12.61 | ||
| P/S | 1.6 | ||
| P/FCF | 15.94 | ||
| P/OCF | 11.93 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.39 |
EPS(TTM)5.25
EY6.33%
EPS(NY)6.58
Fwd EY7.93%
FCF(TTM)5.21
FCFY6.27%
OCF(TTM)6.96
OCFY8.38%
SpS51.99
BVpS69.74
TBVpS-2.54
PEG (NY)0.9
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 6.91% | ||
| ROCE | 9.13% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.98% | ||
| ROICexgc | N/A | ||
| OM | 13.5% | ||
| PM (TTM) | 9.27% | ||
| GM | 47.36% | ||
| FCFM | 10.02% |
ROA(3y)3.65%
ROA(5y)3.42%
ROE(3y)4.62%
ROE(5y)4.4%
ROIC(3y)4.24%
ROIC(5y)4.18%
ROICexc(3y)4.74%
ROICexc(5y)4.68%
ROICexgc(3y)39.25%
ROICexgc(5y)36.61%
ROCE(3y)6.09%
ROCE(5y)6%
ROICexcg growth 3Y24.96%
ROICexcg growth 5Y0.87%
ROICexc growth 3Y16.27%
ROICexc growth 5Y-3.19%
OM growth 3Y9.44%
OM growth 5Y-0.54%
PM growth 3Y23.79%
PM growth 5Y2.58%
GM growth 3Y0.31%
GM growth 5Y-0.05%
F-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.18% | ||
| Cap/Sales | 3.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.02% | ||
| Profit Quality | 108.07% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 3.86 |
F-Score8
WACC8.78%
ROIC/WACC0.72
Cap/Depr(3y)74.79%
Cap/Depr(5y)63%
Cap/Sales(3y)3.55%
Cap/Sales(5y)3.91%
Profit Quality(3y)135.55%
Profit Quality(5y)151.19%
High Growth Momentum
Growth
EPS 1Y (TTM)3.14%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%14.29%
EPS Next Y17.64%
EPS Next 2Y16.26%
EPS Next 3Y16.66%
EPS Next 5YN/A
Revenue 1Y (TTM)4.31%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%2.95%
Revenue Next Year3.21%
Revenue Next 2Y3.66%
Revenue Next 3Y3.53%
Revenue Next 5YN/A
EBIT growth 1Y2.02%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year62.19%
EBIT Next 3Y27.89%
EBIT Next 5YN/A
FCF growth 1Y160.37%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y93.1%
OCF growth 3Y-2.11%
OCF growth 5Y-3.48%