STRATEGIC EDUCATION INC (STRA) Fundamental Analysis & Valuation
NASDAQ:STRA • US86272C1036
Current stock price
81.75 USD
-2.11 (-2.52%)
At close:
81.75 USD
0 (0%)
After Hours:
This STRA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. STRA Profitability Analysis
1.1 Basic Checks
- STRA had positive earnings in the past year.
- In the past year STRA had a positive cash flow from operations.
- STRA had positive earnings in each of the past 5 years.
- STRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- STRA has a better Return On Assets (6.21%) than 71.23% of its industry peers.
- Looking at the Return On Equity, with a value of 7.69%, STRA is in line with its industry, outperforming 58.90% of the companies in the same industry.
- STRA has a better Return On Invested Capital (7.60%) than 72.60% of its industry peers.
- STRA had an Average Return On Invested Capital over the past 3 years of 5.94%. This is below the industry average of 10.75%.
- The 3 year average ROIC (5.94%) for STRA is below the current ROIC(7.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 7.69% | ||
| ROIC | 7.6% |
ROA(3y)5%
ROA(5y)3.91%
ROE(3y)6.23%
ROE(5y)4.95%
ROIC(3y)5.94%
ROIC(5y)4.85%
1.3 Margins
- Looking at the Profit Margin, with a value of 9.98%, STRA is in the better half of the industry, outperforming 73.97% of the companies in the same industry.
- STRA's Profit Margin has improved in the last couple of years.
- STRA has a Operating Margin of 15.47%. This is in the better half of the industry: STRA outperforms 79.45% of its industry peers.
- STRA's Operating Margin has improved in the last couple of years.
- STRA has a Gross Margin (48.97%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of STRA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.47% | ||
| PM (TTM) | 9.98% | ||
| GM | 48.97% |
OM growth 3Y30.59%
OM growth 5Y3.23%
PM growth 3Y31.58%
PM growth 5Y3.52%
GM growth 3Y3.68%
GM growth 5Y0.33%
2. STRA Health Analysis
2.1 Basic Checks
- STRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- STRA has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, STRA has less shares outstanding
- STRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- STRA has an Altman-Z score of 4.05. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
- STRA's Altman-Z score of 4.05 is fine compared to the rest of the industry. STRA outperforms 78.08% of its industry peers.
- STRA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.05 |
ROIC/WACC0.85
WACC8.98%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STRA should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.27, STRA perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
- STRA has a Quick Ratio of 1.27. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.27, STRA is in line with its industry, outperforming 54.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. STRA Growth Analysis
3.1 Past
- STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.10%, which is quite impressive.
- Measured over the past years, STRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.69% on average per year.
- The Revenue has been growing slightly by 3.96% in the past year.
- STRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.30% yearly.
EPS 1Y (TTM)27.1%
EPS 3Y35.29%
EPS 5Y-1.69%
EPS Q2Q%37.01%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y5.98%
Revenue growth 5Y4.3%
Sales Q2Q%3.77%
3.2 Future
- The Earnings Per Share is expected to grow by 13.44% on average over the next years. This is quite good.
- Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 3.42% on average per year.
EPS Next Y8.1%
EPS Next 2Y13.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.93%
Revenue Next 2Y3.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. STRA Valuation Analysis
4.1 Price/Earnings Ratio
- STRA is valuated correctly with a Price/Earnings ratio of 13.21.
- Based on the Price/Earnings ratio, STRA is valued a bit cheaper than 75.34% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 25.50, STRA is valued a bit cheaper.
- A Price/Forward Earnings ratio of 12.22 indicates a correct valuation of STRA.
- Based on the Price/Forward Earnings ratio, STRA is valued cheaply inside the industry as 82.19% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 22.67. STRA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than the industry average as 79.45% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than 79.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 7.12 |
4.3 Compensation for Growth
- STRA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of STRA may justify a higher PE ratio.
- STRA's earnings are expected to grow with 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y13.44%
EPS Next 3YN/A
5. STRA Dividend Analysis
5.1 Amount
- STRA has a Yearly Dividend Yield of 2.96%.
- Compared to an average industry Dividend Yield of 0.45, STRA pays a better dividend. On top of this STRA pays more dividend than 93.15% of the companies listed in the same industry.
- STRA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
- The dividend of STRA has a limited annual growth rate of 0.09%.
- STRA has paid a dividend for at least 10 years, which is 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)0.09%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- 45.45% of the earnings are spent on dividend by STRA. This is a bit on the high side, but may be sustainable.
- STRA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP45.45%
EPS Next 2Y13.44%
EPS Next 3YN/A
STRA Fundamentals: All Metrics, Ratios and Statistics
81.75
-2.11 (-2.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-26 2026-02-26/amc
Earnings (Next)04-22 2026-04-22
Inst Owners94.61%
Inst Owner Change-0.59%
Ins Owners3.27%
Ins Owner Change0.48%
Market Cap1.85B
Revenue(TTM)1.27B
Net Income(TTM)126.61M
Analysts84.44
Price Target103.7 (26.85%)
Short Float %3.68%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend2.42
Dividend Growth(5Y)0.09%
DP45.45%
Div Incr Years0
Div Non Decr Years7
Ex-Date03-09 2026-03-09 (0.6)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.58%
Min EPS beat(2)20.7%
Max EPS beat(2)22.46%
EPS beat(4)4
Avg EPS beat(4)20.68%
Min EPS beat(4)3.97%
Max EPS beat(4)35.59%
EPS beat(8)8
Avg EPS beat(8)27.24%
EPS beat(12)12
Avg EPS beat(12)23.36%
EPS beat(16)13
Avg EPS beat(16)15.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)-0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.73%
Revenue beat(12)1
Avg Revenue beat(12)-0.85%
Revenue beat(16)1
Avg Revenue beat(16)-1.22%
PT rev (1m)0%
PT rev (3m)3.39%
EPS NQ rev (1m)3.9%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)2.07%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-2.21%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.22 | ||
| P/S | 1.46 | ||
| P/FCF | 12.01 | ||
| P/OCF | 9.33 | ||
| P/B | 1.12 | ||
| P/tB | 11.94 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)6.19
EY7.57%
EPS(NY)6.69
Fwd EY8.18%
FCF(TTM)6.81
FCFY8.33%
OCF(TTM)8.77
OCFY10.72%
SpS56.09
BVpS72.82
TBVpS6.84
PEG (NY)1.63
PEG (5Y)N/A
Graham Number100.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 7.69% | ||
| ROCE | 10.77% | ||
| ROIC | 7.6% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 76.54% | ||
| OM | 15.47% | ||
| PM (TTM) | 9.98% | ||
| GM | 48.97% | ||
| FCFM | 12.14% |
ROA(3y)5%
ROA(5y)3.91%
ROE(3y)6.23%
ROE(5y)4.95%
ROIC(3y)5.94%
ROIC(5y)4.85%
ROICexc(3y)6.56%
ROICexc(5y)5.4%
ROICexgc(3y)57.33%
ROICexgc(5y)44.98%
ROCE(3y)8.42%
ROCE(5y)6.86%
ROICexgc growth 3Y47.07%
ROICexgc growth 5Y15.38%
ROICexc growth 3Y39.93%
ROICexc growth 5Y10.45%
OM growth 3Y30.59%
OM growth 5Y3.23%
PM growth 3Y31.58%
PM growth 5Y3.52%
GM growth 3Y3.68%
GM growth 5Y0.33%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 91.41% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.05% | ||
| Profit Quality | 121.59% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 4.05 |
F-Score8
WACC8.98%
ROIC/WACC0.85
Cap/Depr(3y)82.44%
Cap/Depr(5y)72.71%
Cap/Sales(3y)3.36%
Cap/Sales(5y)3.7%
Profit Quality(3y)116.91%
Profit Quality(5y)153.24%
High Growth Momentum
Growth
EPS 1Y (TTM)27.1%
EPS 3Y35.29%
EPS 5Y-1.69%
EPS Q2Q%37.01%
EPS Next Y8.1%
EPS Next 2Y13.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y5.98%
Revenue growth 5Y4.3%
Sales Q2Q%3.77%
Revenue Next Year1.93%
Revenue Next 2Y3.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.71%
EBIT growth 3Y38.39%
EBIT growth 5Y7.66%
EBIT Next Year54.53%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.57%
FCF growth 3Y22.91%
FCF growth 5Y9.88%
OCF growth 1Y17.05%
OCF growth 3Y16.27%
OCF growth 5Y6.76%
STRATEGIC EDUCATION INC / STRA Fundamental Analysis FAQ
What is the ChartMill fundamental rating of STRATEGIC EDUCATION INC (STRA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to STRA.
What is the valuation status for STRA stock?
ChartMill assigns a valuation rating of 6 / 10 to STRATEGIC EDUCATION INC (STRA). This can be considered as Fairly Valued.
How profitable is STRATEGIC EDUCATION INC (STRA) stock?
STRATEGIC EDUCATION INC (STRA) has a profitability rating of 7 / 10.
What is the valuation of STRATEGIC EDUCATION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STRATEGIC EDUCATION INC (STRA) is 13.21 and the Price/Book (PB) ratio is 1.12.
Can you provide the financial health for STRA stock?
The financial health rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10.