STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
USA - NASDAQ:STRA - US86272C1036 - Common Stock
80.48 USD
+1.29 (+1.63%)
80.48 USD
0 (0%)
Overall STRA gets a fundamental rating of 6 out of 10. We evaluated STRA against 77 industry peers in the Diversified Consumer Services industry. STRA gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year STRA was profitable.
In the past year STRA had a positive cash flow from operations.
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 better Return On Assets (5.51%) than 71.43% of its industry peers.
With a decent Return On Equity value of 6.91%, STRA is doing good in the industry, outperforming 61.04% of the companies in the same industry.
The Return On Invested Capital of STRA (6.35%) is better than 74.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 9.48%.
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
STRA's Profit Margin of 9.27% is fine compared to the rest of the industry. STRA outperforms 71.43% of its industry peers.
STRA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.50%, STRA is in the better half of the industry, outperforming 71.43% 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 (47.36%) 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.
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.
2.2 Solvency
STRA has an Altman-Z score of 3.77. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
STRA has a better Altman-Z score (3.77) than 83.12% of its industry peers.
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 | 3.77 |
ROIC/WACC0.74
WACC8.58%
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.
The Current ratio of STRA (1.26) is comparable to the rest of the industry.
A Quick Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
STRA has a Quick ratio (1.26) which is in line with its industry peers.
| 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%.
The Earnings Per Share has been decreasing by -6.07% on average over the past years.
Looking at the last year, STRA shows a small growth in Revenue. The Revenue has grown by 4.31% in the last year.
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)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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.33, which 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 77.92% of the companies listed in the same industry.
STRA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.23, the valuation of STRA can be described as correct.
STRA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STRA is cheaper than 84.42% of the companies in the same industry.
STRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRA is valued a bit cheaper than 77.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRA indicates a rather cheap valuation: STRA is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.45 | ||
| EV/EBITDA | 8.1 |
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 16.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y16.26%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 3.03%. 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 2.02. STRA pays more dividend than 97.40% of the companies in the same industry.
STRA's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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%
80.48
+1.29 (+1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change-0.01%
Ins Owners3.06%
Ins Owner Change1.37%
Market Cap1.92B
Analysts84.44
Price Target103.36 (28.43%)
Short Float %2.44%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)0%
PT rev (3m)-1.3%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)0%
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 | 15.33 | ||
| Fwd PE | 12.23 | ||
| P/S | 1.55 | ||
| P/FCF | 15.45 | ||
| P/OCF | 11.57 | ||
| P/B | 1.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)5.25
EY6.52%
EPS(NY)6.58
Fwd EY8.18%
FCF(TTM)5.21
FCFY6.47%
OCF(TTM)6.96
OCFY8.64%
SpS51.99
BVpS69.74
TBVpS-2.54
PEG (NY)0.88
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 | 3.77 |
F-Score8
WACC8.58%
ROIC/WACC0.74
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%