85.62 USD
-0.69 (-0.8%)
85.62 USD
0 (0%)
Taking everything into account, STRA scores 6 out of 10 in our fundamental rating. STRA was compared to 76 industry peers in the Diversified Consumer Services industry. STRA has an excellent financial health rating, but there are some minor concerns on its profitability. STRA is not valued too expensively and it also shows a decent growth rate. Finally STRA also has an excellent dividend rating. This makes STRA very considerable for dividend 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.
- 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 5.40%. This is in the better half of the industry: STRA outperforms 67.11% of its industry peers.
- The Return On Equity of STRA (6.89%) is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 6.92%, STRA is doing good in the industry, outperforming 69.74% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 10.15%.
- 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
- STRA's Profit Margin of 9.08% is fine compared to the rest of the industry. STRA outperforms 69.74% of its industry peers.
- STRA's Profit Margin has improved in the last couple of years.
- STRA has a better Operating Margin (14.48%) than 75.00% of its industry peers.
- 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.
- STRA has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for STRA has been increased compared to 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 3.72. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
- STRA's Altman-Z score of 3.72 is amongst the best of the industry. STRA outperforms 80.26% 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 | 3.72 |
ROIC/WACC0.79
WACC8.8%
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 (1.22) which is comparable to the rest of the industry.
- 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.
- STRA has a Quick ratio of 1.22. This is comparable to the rest of the industry: STRA outperforms 57.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
- 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.
- STRA shows a small growth in Revenue. In the last year, the Revenue has grown by 3.74%.
- Measured over the past years, STRA shows a small growth in Revenue. The Revenue has been growing by 4.12% on average per year.
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
- The Earnings Per Share is expected to grow by 16.06% on average over the next years. This is quite good.
- 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
- Based on the Price/Earnings ratio of 14.97, the valuation of STRA can be described as correct.
- Based on the Price/Earnings ratio, STRA is valued a bit cheaper than 73.68% of the companies in the same industry.
- When comparing the Price/Earnings ratio of STRA to the average of the S&P500 Index (27.21), we can say STRA is valued slightly cheaper.
- A Price/Forward Earnings ratio of 13.06 indicates a correct valuation of STRA.
- Based on the Price/Forward Earnings ratio, STRA is valued cheaply inside the industry as 80.26% of the companies are valued more expensively.
- STRA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.28 | ||
| EV/EBITDA | 7.95 |
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.
- 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 16.06% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y16.06%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.78%, STRA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.36, STRA pays a better dividend. On top of this STRA pays more dividend than 97.37% 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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 50.94% 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.
DP50.94%
EPS Next 2Y16.02%
EPS Next 3Y16.06%
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 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 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 14.97 and the Price/Book (PB) ratio is 1.21.
Can you provide the financial health for STRA stock?
The financial health rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10.