STRATEGIC EDUCATION INC (STRA) Fundamental Analysis & Valuation
NASDAQ:STRA • US86272C1036
Current stock price
73.53 USD
+1.34 (+1.86%)
At close:
73.53 USD
0 (0%)
After Hours:
This STRA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. STRA Profitability Analysis
1.1 Basic Checks
- STRA had positive earnings in the past year.
- In the past year STRA had a positive cash flow from operations.
- STRA had positive earnings in each of the past 5 years.
- 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 6.21%, STRA is doing good in the industry, outperforming 69.86% of the companies in the same industry.
- STRA has a Return On Equity (7.69%) which is comparable to the rest of the industry.
- The Return On Invested Capital of STRA (7.60%) is better than 69.86% of its industry peers.
- STRA had an Average Return On Invested Capital over the past 3 years of 5.94%. This is significantly below the industry average of 15.40%.
- The 3 year average ROIC (5.94%) for STRA is below the current ROIC(7.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 7.69% | ||
| ROIC | 7.6% |
ROA(3y)5%
ROA(5y)3.91%
ROE(3y)6.23%
ROE(5y)4.95%
ROIC(3y)5.94%
ROIC(5y)4.85%
1.3 Margins
- STRA has a Profit Margin of 9.98%. This is in the better half of the industry: STRA outperforms 73.97% of its industry peers.
- In the last couple of years the Profit Margin of STRA has grown nicely.
- The Operating Margin of STRA (15.47%) is better than 79.45% of its industry peers.
- STRA's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 48.97%, STRA is in line with its industry, outperforming 53.42% of the companies in the same industry.
- 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 | 15.47% | ||
| PM (TTM) | 9.98% | ||
| GM | 48.97% |
OM growth 3Y30.59%
OM growth 5Y3.23%
PM growth 3Y31.58%
PM growth 5Y3.52%
GM growth 3Y3.68%
GM growth 5Y0.33%
2. STRA Health Analysis
2.1 Basic Checks
- STRA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- STRA has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, STRA has less shares outstanding
- 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
- An Altman-Z score of 3.65 indicates that STRA is not in any danger for bankruptcy at the moment.
- The Altman-Z score of STRA (3.65) is better than 76.71% 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 | 3.65 |
ROIC/WACC0.85
WACC8.98%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that STRA should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.27, STRA perfoms like the industry average, outperforming 50.68% of the companies in the same industry.
- A Quick Ratio of 1.27 indicates that STRA should not have too much problems paying its short term obligations.
- STRA has a Quick ratio (1.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. STRA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 24.70% over the past year.
- Measured over the past years, STRA shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.69% on average per year.
- Looking at the last year, STRA shows a small growth in Revenue. The Revenue has grown by 3.96% in the last year.
- Measured over the past years, STRA shows a small growth in Revenue. The Revenue has been growing by 4.30% on average per year.
EPS 1Y (TTM)24.7%
EPS 3Y35.29%
EPS 5Y-1.69%
EPS Q2Q%9.23%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y5.98%
Revenue growth 5Y4.3%
Sales Q2Q%0.77%
3.2 Future
- Based on estimates for the next years, STRA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.32% on average per year.
- The Revenue is expected to grow by 3.68% on average over the next years.
EPS Next Y13.78%
EPS Next 2Y15.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.71%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
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. STRA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.65, the valuation of STRA can be described as very reasonable.
- Based on the Price/Earnings ratio, STRA is valued a bit cheaper than the industry average as 73.97% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.42. STRA is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 8.93, the valuation of STRA can be described as very reasonable.
- STRA's Price/Forward Earnings ratio is rather cheap when compared to the industry. STRA is cheaper than 91.78% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 22.24. STRA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STRA is valued cheaper than 82.19% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, STRA is valued cheaper than 83.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.8 | ||
| EV/EBITDA | 6.04 |
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 15.32% in the coming years.
PEG (NY)0.85
PEG (5Y)N/A
EPS Next 2Y15.32%
EPS Next 3YN/A
5. STRA Dividend Analysis
5.1 Amount
- STRA has a Yearly Dividend Yield of 3.32%.
- Compared to an average industry Dividend Yield of 0.44, STRA pays a better dividend. On top of this STRA pays more dividend than 95.89% 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 | 3.32% |
5.2 History
- The dividend of STRA has a limited annual growth rate of 0.09%.
- STRA has paid a dividend for at least 10 years, which is a reliable track record.
- As STRA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.09%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
- STRA pays out 45.45% 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.
DP45.45%
EPS Next 2Y15.32%
EPS Next 3YN/A
STRA Fundamentals: All Metrics, Ratios and Statistics
73.53
+1.34 (+1.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)04-23 2026-04-23/bmo
Earnings (Next)N/A N/A
Inst Owners96.24%
Inst Owner Change0.16%
Ins Owners3.27%
Ins Owner Change0.48%
Market Cap1.66B
Revenue(TTM)1.27B
Net Income(TTM)126.61M
Analysts82.22
Price Target96.9 (31.78%)
Short Float %5.54%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend2.42
Dividend Growth(5Y)0.09%
DP45.45%
Div Incr Years0
Div Non Decr Years8
Ex-Date03-09 2026-03-09 (0.6)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.58%
Min EPS beat(2)20.7%
Max EPS beat(2)22.46%
EPS beat(4)4
Avg EPS beat(4)20.68%
Min EPS beat(4)3.97%
Max EPS beat(4)35.59%
EPS beat(8)8
Avg EPS beat(8)27.24%
EPS beat(12)12
Avg EPS beat(12)23.36%
EPS beat(16)13
Avg EPS beat(16)15.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)-0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.73%
Revenue beat(12)1
Avg Revenue beat(12)-0.85%
Revenue beat(16)1
Avg Revenue beat(16)-1.22%
PT rev (1m)-6.56%
PT rev (3m)-6.56%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)5.91%
EPS NY rev (1m)5.26%
EPS NY rev (3m)7.44%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 8.93 | ||
| P/S | 1.31 | ||
| P/FCF | 10.8 | ||
| P/OCF | 8.39 | ||
| P/B | 1.01 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 6.04 |
EPS(TTM)6.31
EY8.58%
EPS(NY)8.23
Fwd EY11.19%
FCF(TTM)6.81
FCFY9.26%
OCF(TTM)8.77
OCFY11.92%
SpS56.09
BVpS72.82
TBVpS6.84
PEG (NY)0.85
PEG (5Y)N/A
Graham Number101.677 (38.28%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 7.69% | ||
| ROCE | 10.77% | ||
| ROIC | 7.6% | ||
| ROICexc | 8.28% | ||
| ROICexgc | 76.54% | ||
| OM | 15.47% | ||
| PM (TTM) | 9.98% | ||
| GM | 48.97% | ||
| FCFM | 12.14% |
ROA(3y)5%
ROA(5y)3.91%
ROE(3y)6.23%
ROE(5y)4.95%
ROIC(3y)5.94%
ROIC(5y)4.85%
ROICexc(3y)6.56%
ROICexc(5y)5.4%
ROICexgc(3y)57.33%
ROICexgc(5y)44.98%
ROCE(3y)8.42%
ROCE(5y)6.86%
ROICexgc growth 3Y47.07%
ROICexgc growth 5Y15.38%
ROICexc growth 3Y39.93%
ROICexc growth 5Y10.45%
OM growth 3Y30.59%
OM growth 5Y3.23%
PM growth 3Y31.58%
PM growth 5Y3.52%
GM growth 3Y3.68%
GM growth 5Y0.33%
F-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 91.41% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.05% | ||
| Profit Quality | 121.59% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.65 |
F-Score8
WACC8.98%
ROIC/WACC0.85
Cap/Depr(3y)82.44%
Cap/Depr(5y)72.71%
Cap/Sales(3y)3.36%
Cap/Sales(5y)3.7%
Profit Quality(3y)116.91%
Profit Quality(5y)153.24%
High Growth Momentum
Growth
EPS 1Y (TTM)24.7%
EPS 3Y35.29%
EPS 5Y-1.69%
EPS Q2Q%9.23%
EPS Next Y13.78%
EPS Next 2Y15.32%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.96%
Revenue growth 3Y5.98%
Revenue growth 5Y4.3%
Sales Q2Q%0.77%
Revenue Next Year2.71%
Revenue Next 2Y3.68%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.71%
EBIT growth 3Y38.39%
EBIT growth 5Y7.66%
EBIT Next Year56.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.57%
FCF growth 3Y22.91%
FCF growth 5Y9.88%
OCF growth 1Y17.05%
OCF growth 3Y16.27%
OCF growth 5Y6.76%
STRATEGIC EDUCATION INC / STRA Fundamental Analysis FAQ
What is the ChartMill fundamental rating of STRATEGIC EDUCATION INC (STRA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to STRA.
What is the valuation status for STRA stock?
ChartMill assigns a valuation rating of 8 / 10 to STRATEGIC EDUCATION INC (STRA). This can be considered as Undervalued.
Can you provide the profitability details for STRATEGIC EDUCATION INC?
STRATEGIC EDUCATION INC (STRA) has a profitability rating of 7 / 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 11.65 and the Price/Book (PB) ratio is 1.01.
How sustainable is the dividend of STRATEGIC EDUCATION INC (STRA) stock?
The dividend rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10 and the dividend payout ratio is 45.45%.