STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
USA - NASDAQ:STRA - US86272C1036 - Common Stock
83.93 USD
+0.38 (+0.45%)
83.93 USD
0 (0%)
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. Both the profitability and the financial health of STRA get a neutral evaluation. Nothing too spectacular is happening here. STRA has a decent growth rate and is not valued too expensively. Finally STRA also has an excellent dividend rating. These ratings could make STRA a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year STRA was profitable.
STRA had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.51%, STRA is doing good in the industry, outperforming 70.67% of the companies in the same industry.
STRA has a Return On Equity of 6.91%. This is comparable to the rest of the industry: STRA outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.35%, STRA is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STRA is significantly below the industry average of 9.88%.
The 3 year average ROIC (4.24%) for STRA is below the current ROIC(6.35%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 9.27%, STRA is in the better half of the industry, outperforming 70.67% 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 13.50%. This is in the better half of the industry: STRA outperforms 70.67% of its industry peers.
In the last couple of years the Operating Margin of STRA has remained more or less at the same level.
STRA has a Gross Margin (47.36%) which is in line with its industry peers.
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.
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 3.87. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.87, STRA is doing good in the industry, outperforming 80.00% 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 | 3.87 |
ROIC/WACC0.73
WACC8.72%
2.3 Liquidity
STRA has a Current 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 has a Current ratio (1.26) which is in line with its industry peers.
A Quick Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.26, STRA perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| 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%.
Measured over the past years, STRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.07% on average per year.
The Revenue has been growing slightly by 4.31% in the past year.
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
STRA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.66% yearly.
STRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y17.5%
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 15.99 indicates a correct valuation of STRA.
Compared to the rest of the industry, the Price/Earnings ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. STRA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.75, which indicates a correct valuation of STRA.
85.33% of the companies in the same industry are more expensive than STRA, based on the Price/Forward Earnings ratio.
STRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than the industry average as 78.67% of the companies are valued more expensively.
STRA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STRA is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.12 | ||
| EV/EBITDA | 8.45 |
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.
A more expensive valuation may be justified as STRA's earnings are expected to grow with 16.66% in the coming years.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.89%.
STRA's Dividend Yield is rather good when compared to the industry average which is at 1.91. STRA pays more dividend than 97.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, STRA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
50.95% 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.
DP50.95%
EPS Next 2Y16.26%
EPS Next 3Y16.66%
83.93
+0.38 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change0.6%
Ins Owners3.06%
Ins Owner Change1.27%
Market Cap2.01B
Analysts84.44
Price Target103.36 (23.15%)
Short Float %3.03%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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)2.01%
PT rev (3m)-1.3%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 12.75 | ||
| P/S | 1.61 | ||
| P/FCF | 16.12 | ||
| P/OCF | 12.06 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.45 |
EPS(TTM)5.25
EY6.26%
EPS(NY)6.58
Fwd EY7.84%
FCF(TTM)5.21
FCFY6.2%
OCF(TTM)6.96
OCFY8.29%
SpS51.99
BVpS69.74
TBVpS-2.54
PEG (NY)0.91
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 | 3.87 |
F-Score8
WACC8.72%
ROIC/WACC0.73
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 Y17.5%
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%