STRATEGIC EDUCATION INC (STRA) Fundamental Analysis & Valuation

NASDAQ:STRA • US86272C1036

Current stock price

80.53 USD
+1.27 (+1.6%)
At close:
80.53 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.

6

1. STRA Profitability Analysis

1.1 Basic Checks

  • STRA had positive earnings in the past year.
  • STRA had a positive operating cash flow in the past year.
  • STRA had positive earnings in 4 of the past 5 years.
  • Of the past 5 years STRA 4 years had a positive operating cash flow.
STRA Yearly Net Income VS EBIT VS OCF VS FCFSTRA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M

1.2 Ratios

  • The Return On Assets of STRA (5.40%) is better than 69.86% of its industry peers.
  • Looking at the Return On Equity, with a value of 6.89%, STRA is in line with its industry, outperforming 58.90% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 6.92%, STRA is doing good in the industry, outperforming 68.49% of the companies in the same industry.
  • STRA had an Average Return On Invested Capital over the past 3 years of 4.24%. This is significantly below the industry average of 10.88%.
  • 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 RankSector 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%
STRA Yearly ROA, ROE, ROICSTRA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

  • STRA's Profit Margin of 9.08% is fine compared to the rest of the industry. STRA outperforms 71.23% of its industry peers.
  • In the last couple of years the Profit Margin of STRA has grown nicely.
  • STRA's Operating Margin of 14.48% is fine compared to the rest of the industry. STRA outperforms 76.71% of its industry peers.
  • STRA's Operating Margin has been stable in the last couple of years.
  • STRA has a Gross Margin of 47.95%. This is comparable to the rest of the industry: STRA outperforms 52.05% of its industry peers.
  • STRA's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
STRA Yearly Profit, Operating, Gross MarginsSTRA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40

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6

2. STRA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRA is destroying value.
  • 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.
STRA Yearly Shares OutstandingSTRA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M
STRA Yearly Total Debt VS Total AssetsSTRA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • STRA has an Altman-Z score of 3.48. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
  • STRA has a better Altman-Z score (3.48) than 75.34% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.48
ROIC/WACC0.79
WACC8.78%
STRA Yearly LT Debt VS Equity VS FCFSTRA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.3 Liquidity

  • STRA has a Current 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 Current ratio (1.22) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.22 indicates that STRA should not have too much problems paying its short term obligations.
  • STRA's Quick ratio of 1.22 is in line compared to the rest of the industry. STRA outperforms 53.42% of its industry peers.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22
STRA Yearly Current Assets VS Current LiabilitesSTRA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

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3

3. STRA Growth Analysis

3.1 Past

  • STRA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.10%, which is quite impressive.
  • 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.
EPS 1Y (TTM)27.1%
EPS 3Y35.29%
EPS 5Y-1.69%
EPS Q2Q%37.01%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.77%

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 13.44% yearly.
  • Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 2.60% on average per year.
EPS Next Y8.1%
EPS Next 2Y13.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.71%
Revenue Next 2Y2.6%
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.
STRA Yearly Revenue VS EstimatesSTRA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M 1B
STRA Yearly EPS VS EstimatesSTRA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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6

4. STRA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.01, the valuation of STRA can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 76.71% of the companies listed in the same industry.
  • STRA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
  • The Price/Forward Earnings ratio is 12.04, which indicates a correct valuation of STRA.
  • Based on the Price/Forward Earnings ratio, STRA is valued cheaper than 83.56% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, STRA is valued rather cheaply.
Industry RankSector Rank
PE 13.01
Fwd PE 12.04
STRA Price Earnings VS Forward Price EarningsSTRA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 79.45% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, STRA is valued a bit cheaper than the industry average as 76.71% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.9
EV/EBITDA 7.16
STRA Per share dataSTRA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • STRA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 13.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.61
PEG (5Y)N/A
EPS Next 2Y13.44%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. STRA Dividend Analysis

5.1 Amount

  • STRA has a Yearly Dividend Yield of 2.85%.
  • STRA's Dividend Yield is rather good when compared to the industry average which is at 0.42. STRA pays more dividend than 94.52% of the companies in the same industry.
  • STRA's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.85%

5.2 History

  • The dividend of STRA has a limited annual growth rate of 2.49%.
  • 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)2.49%
Div Incr Years0
Div Non Decr Years7
STRA Yearly Dividends per shareSTRA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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.
  • STRA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.94%
EPS Next 2Y13.44%
EPS Next 3YN/A
STRA Yearly Income VS Free CF VS DividendSTRA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M
STRA Dividend Payout.STRA Dividend Payout, showing the Payout Ratio.STRA Dividend Payout.PayoutRetained Earnings

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STRA Fundamentals: All Metrics, Ratios and Statistics

STRATEGIC EDUCATION INC

NASDAQ:STRA (3/17/2026, 8:00:01 PM)

After market: 80.53 0 (0%)

80.53

+1.27 (+1.6%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-26
Earnings (Next)04-22
Inst Owners93.98%
Inst Owner Change-0.59%
Ins Owners3.11%
Ins Owner Change1.37%
Market Cap1.83B
Revenue(TTM)N/A
Net Income(TTM)114.04M
Analysts84.44
Price Target103.7 (28.77%)
Short Float %3.68%
Short Ratio3.01
Dividend
Industry RankSector Rank
Dividend Yield 2.85%
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP50.94%
Div Incr Years0
Div Non Decr Years7
Ex-Date03-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.21%
Min EPS beat(2)3.97%
Max EPS beat(2)22.46%
EPS beat(4)4
Avg EPS beat(4)15.61%
Min EPS beat(4)0.41%
Max EPS beat(4)35.59%
EPS beat(8)8
Avg EPS beat(8)27.54%
EPS beat(12)11
Avg EPS beat(12)20.15%
EPS beat(16)13
Avg EPS beat(16)15.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.47%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.55%
Revenue beat(12)1
Avg Revenue beat(12)-0.93%
Revenue beat(16)1
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)3.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 13.01
Fwd PE 12.04
P/S 1.46
P/FCF 13.9
P/OCF 10.47
P/B 1.11
P/tB 10.76
EV/EBITDA 7.16
EPS(TTM)6.19
EY7.69%
EPS(NY)6.69
Fwd EY8.31%
FCF(TTM)5.79
FCFY7.19%
OCF(TTM)7.69
OCFY9.56%
SpS55.28
BVpS72.86
TBVpS7.48
PEG (NY)1.61
PEG (5Y)N/A
Graham Number100.74
Profitability
Industry RankSector Rank
ROA 5.4%
ROE 6.89%
ROCE 9.95%
ROIC 6.92%
ROICexc 7.64%
ROICexgc 74.51%
OM 14.48%
PM (TTM) 9.08%
GM 47.95%
FCFM 10.48%
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%
ROICexgc growth 3Y24.96%
ROICexgc 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-Score7
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 92.99%
Cap/Sales 3.44%
Interest Coverage 250
Cash Conversion 76.55%
Profit Quality 115.45%
Current Ratio 1.22
Quick Ratio 1.22
Altman-Z 3.48
F-Score7
WACC8.78%
ROIC/WACC0.79
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)27.1%
EPS 3Y35.29%
EPS 5Y-1.69%
EPS Q2Q%37.01%
EPS Next Y8.1%
EPS Next 2Y13.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.77%
Revenue Next Year2.71%
Revenue Next 2Y2.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.59%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year66.32%
EBIT Next 3Y28.09%
EBIT Next 5YN/A
FCF growth 1Y160.21%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y97.41%
OCF growth 3Y-2.11%
OCF growth 5Y-3.48%

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 5 / 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 13.01 and the Price/Book (PB) ratio is 1.11.


Can you provide the financial health for STRA stock?

The financial health rating of STRATEGIC EDUCATION INC (STRA) is 6 / 10.