STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA • US86272C1036
76.12 USD
+0.24 (+0.32%)
At close: Feb 20, 2026
76.12 USD
0 (0%)
After Hours: 2/20/2026, 8:06:16 PM
STRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. STRA has only an average score on both its financial health and profitability. STRA may be a bit undervalued, certainly considering the very reasonable score on growth Finally STRA also has an excellent dividend rating. With these ratings, STRA could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- STRA had positive earnings in the past year.
- STRA had a positive operating cash flow in the past year.
- In the past 5 years STRA has always 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 5.40%. This is in the better half of the industry: STRA outperforms 68.00% of its industry peers.
- STRA has a Return On Equity (6.89%) which is comparable to the rest of the industry.
- STRA has a Return On Invested Capital of 6.92%. This is in the better half of the industry: STRA outperforms 68.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 10.88%.
- The last Return On Invested Capital (6.92%) for STRA is above the 3 year average (4.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 6.89% | ||
| ROIC | 6.92% |
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 (9.08%) is better than 70.67% of its industry peers.
- STRA's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 14.48%, STRA is doing good in the industry, outperforming 77.33% of the companies in the same industry.
- STRA's Operating Margin has been stable in the last couple of years.
- STRA has a Gross Margin (47.95%) which 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 | 14.48% | ||
| PM (TTM) | 9.08% | ||
| GM | 47.95% |
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.
- The number of shares outstanding for STRA has been increased compared to 1 year ago.
- STRA has more shares outstanding than it did 5 years ago.
- 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 3.42. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.42, STRA is in the better half of the industry, outperforming 77.33% of the companies in the same industry.
- 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 | 3.42 |
ROIC/WACC0.8
WACC8.63%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that STRA should not have too much problems paying its short term obligations.
- STRA has a Current ratio of 1.22. This is comparable to the rest of the industry: STRA outperforms 50.67% of its industry peers.
- STRA has a Quick Ratio of 1.22. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.22, STRA perfoms like the industry average, outperforming 54.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.33% over the past year.
- The Earnings Per Share has been decreasing by -6.07% on average over the past years.
- The Revenue has been growing slightly by 3.74% in the past year.
- The Revenue has been growing slightly by 4.12% on average over the past years.
EPS 1Y (TTM)8.33%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%40.52%
Revenue 1Y (TTM)3.74%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
3.2 Future
- STRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.
- STRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.08% yearly.
EPS Next Y22.87%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y3.7%
Revenue Next 3Y4.08%
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.
- 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
- STRA is valuated correctly with a Price/Earnings ratio of 13.31.
- 77.33% of the companies in the same industry are more expensive than STRA, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.99. STRA is valued rather cheaply when compared to this.
- STRA is valuated reasonably with a Price/Forward Earnings ratio of 11.61.
- Based on the Price/Forward Earnings ratio, STRA is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, STRA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 11.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than 77.33% of the companies in the same industry.
- 76.00% 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 | 13.58 | ||
| EV/EBITDA | 6.95 |
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 16.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
- STRA has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
- STRA's Dividend Yield is rather good when compared to the industry average which is at 0.41. STRA pays more dividend than 97.33% of the companies in the same industry.
- STRA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
- The dividend of STRA has a limited annual growth rate of 2.49%.
- 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)2.49%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
- STRA pays out 50.94% of its income as dividend. 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.
DP50.94%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
76.12
+0.24 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-06 2025-11-06/bmo
Earnings (Next)02-26 2026-02-26/bmo
Inst Owners93.98%
Inst Owner Change4.59%
Ins Owners3.11%
Ins Owner Change-0.19%
Market Cap1.79B
Revenue(TTM)1.26B
Net Income(TTM)114.04M
Analysts84.44
Price Target103.7 (36.23%)
Short Float %3.4%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP50.94%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.21%
Min EPS beat(2)3.97%
Max EPS beat(2)22.46%
EPS beat(4)4
Avg EPS beat(4)15.61%
Min EPS beat(4)0.41%
Max EPS beat(4)35.59%
EPS beat(8)8
Avg EPS beat(8)27.54%
EPS beat(12)11
Avg EPS beat(12)20.15%
EPS beat(16)13
Avg EPS beat(16)15.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.21%
PT rev (1m)3.39%
PT rev (3m)0.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)5.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.31 | ||
| Fwd PE | 11.61 | ||
| P/S | 1.42 | ||
| P/FCF | 13.58 | ||
| P/OCF | 10.22 | ||
| P/B | 1.08 | ||
| P/tB | 10.51 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)5.72
EY7.51%
EPS(NY)6.56
Fwd EY8.61%
FCF(TTM)5.61
FCFY7.36%
OCF(TTM)7.45
OCFY9.78%
SpS53.49
BVpS70.5
TBVpS7.24
PEG (NY)0.58
PEG (5Y)N/A
Graham Number95.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.4% | ||
| ROE | 6.89% | ||
| ROCE | 9.95% | ||
| ROIC | 6.92% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 74.51% | ||
| OM | 14.48% | ||
| PM (TTM) | 9.08% | ||
| GM | 47.95% | ||
| FCFM | 10.48% |
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%
ROICexgc growth 3Y24.96%
ROICexgc 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-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 92.99% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.55% | ||
| Profit Quality | 115.45% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.42 |
F-Score7
WACC8.63%
ROIC/WACC0.8
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)8.33%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%40.52%
EPS Next Y22.87%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
EPS Next 5YN/A
Revenue 1Y (TTM)3.74%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
Revenue Next Year3.61%
Revenue Next 2Y3.7%
Revenue Next 3Y4.08%
Revenue Next 5YN/A
EBIT growth 1Y5.59%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year66.32%
EBIT Next 3Y27.04%
EBIT Next 5YN/A
FCF growth 1Y160.21%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y97.41%
OCF growth 3Y-2.11%
OCF growth 5Y-3.48%
STRATEGIC EDUCATION INC / STRA 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 7 / 10 to STRATEGIC EDUCATION INC (STRA). This can be considered as Undervalued.
How profitable is STRATEGIC EDUCATION INC (STRA) stock?
STRATEGIC EDUCATION INC (STRA) has a profitability rating of 6 / 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 13.31 and the Price/Book (PB) ratio is 1.08.
Can you provide the financial health for STRA stock?
The financial health rating of STRATEGIC EDUCATION INC (STRA) is 6 / 10.