STRATEGIC EDUCATION INC (STRA)
US86272C1036 - Common Stock
STRA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 66 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making STRA a very profitable company, without any liquidiy or solvency issues. STRA has a decent growth rate and is not valued too expensively. STRA also has an excellent dividend rating. This makes STRA very considerable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
STRA had positive earnings in the past year.
In the past year STRA had a positive cash flow from operations.
In the past 5 years STRA has always been profitable.
Each year in the past 5 years STRA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STRA (4.71%) is better than 81.25% of its industry peers.
STRA's Return On Equity of 6.18% is fine compared to the rest of the industry. STRA outperforms 67.19% of its industry peers.
The Return On Invested Capital of STRA (5.19%) is better than 70.31% of its industry peers.
STRA had an Average Return On Invested Capital over the past 3 years of 3.40%. This is significantly below the industry average of 14.49%.
The 3 year average ROIC (3.40%) for STRA is below the current ROIC(5.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 6.18% | ||
| ROIC | 5.19% |
ROA(3y)2.61%
ROA(5y)3.23%
ROE(3y)3.43%
ROE(5y)4.15%
ROIC(3y)3.4%
ROIC(5y)4.03%
1.3 Margins
STRA has a better Profit Margin (8.70%) than 82.81% of its industry peers.
In the last couple of years the Profit Margin of STRA has declined.
With a decent Operating Margin value of 12.36%, STRA is doing good in the industry, outperforming 73.44% of the companies in the same industry.
In the last couple of years the Operating Margin of STRA has grown nicely.
STRA has a Gross Margin (46.11%) which is in line with its industry peers.
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 | 12.36% | ||
| PM (TTM) | 8.7% | ||
| GM | 46.11% |
OM growth 3Y-8.87%
OM growth 5Y9.24%
PM growth 3Y-9.81%
PM growth 5YN/A
GM growth 3Y-2.29%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRA is destroying value.
The number of shares outstanding for STRA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, STRA has more shares outstanding
The debt/assets ratio for STRA has been reduced compared to a year ago.
2.2 Solvency
STRA has an Altman-Z score of 4.40. 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 4.40, STRA belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
The Debt to FCF ratio of STRA is 0.50, which is an excellent value as it means it would take STRA, only 0.50 years of fcf income to pay off all of its debts.
STRA has a better Debt to FCF ratio (0.50) than 87.50% of its industry peers.
STRA has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
STRA has a better Debt to Equity ratio (0.04) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.59
WACC8.87%
2.3 Liquidity
STRA has a Current Ratio of 1.49. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
STRA has a Current ratio of 1.49. This is comparable to the rest of the industry: STRA outperforms 59.38% of its industry peers.
STRA has a Quick Ratio of 1.49. This is a normal value and indicates that STRA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of STRA (1.49) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 108.18%, which is quite impressive.
The Earnings Per Share has been decreasing by -4.13% on average over the past years.
The Revenue has grown by 9.72% in the past year. This is quite good.
STRA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.30% yearly.
EPS 1Y (TTM)108.18%
EPS 3Y-18.05%
EPS 5Y-4.13%
EPS growth Q2Q362.5%
Revenue 1Y (TTM)9.72%
Revenue growth 3Y3.3%
Revenue growth 5Y12.3%
Revenue growth Q2Q13.11%
3.2 Future
The Earnings Per Share is expected to grow by 24.08% on average over the next years. This is a very strong growth
Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 5.54% on average per year.
EPS Next Y26.93%
EPS Next 2Y24.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6%
Revenue Next 2Y5.54%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STRA is valuated quite expensively with a Price/Earnings ratio of 26.00.
STRA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.15. STRA is around the same levels.
With a Price/Forward Earnings ratio of 20.85, STRA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, STRA is valued a bit cheaper than 60.94% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. STRA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 20.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STRA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 65.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.08 | ||
| EV/EBITDA | 13.77 |
4.3 Compensation for Growth
STRA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of STRA may justify a higher PE ratio.
A more expensive valuation may be justified as STRA's earnings are expected to grow with 24.08% in the coming years.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y24.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.98%, STRA has a reasonable but not impressive dividend return.
STRA's Dividend Yield is rather good when compared to the industry average which is at 32.83. STRA pays more dividend than 92.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, STRA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of STRA is nicely growing with an annual growth rate of 7.34%!
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)7.34%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
57.83% 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.
DP57.83%
EPS Next 2Y24.08%
EPS Next 3YN/A
STRATEGIC EDUCATION INC
NASDAQ:STRA (5/17/2024, 7:00:01 PM)
After market: 119.09 0 (0%)119.09
-0.75 (-0.63%)
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 Cap2.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26 | ||
| Fwd PE | 20.85 | ||
| 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)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.71% | ||
| ROE | 6.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.36% | ||
| PM (TTM) | 8.7% | ||
| GM | 46.11% | ||
| 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| 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)108.18%
EPS 3Y-18.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.72%
Revenue growth 3Y3.3%
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y