STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA - Nasdaq - US86272C1036 - Common Stock - Currency: USD
Taking everything into account, STRA scores 7 out of 10 in our fundamental rating. STRA was compared to 71 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making STRA a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on STRA. Finally STRA also has an excellent dividend rating. These ratings could make STRA a good candidate for value and dividend investing.
1. Profitability
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 each of the past 5 years.
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 69.01% of its industry peers.
With a decent Return On Equity value of 6.91%, STRA is doing good in the industry, outperforming 61.97% of the companies in the same industry.
STRA has a better Return On Invested Capital (6.35%) than 73.24% of its industry peers.
STRA had an Average Return On Invested Capital over the past 3 years of 4.24%. This is significantly below the industry average of 10.20%.
The last Return On Invested Capital (6.35%) for STRA is above the 3 year average (4.24%), which is a sign of increasing profitability.
| 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 70.42% of its industry peers.
In the last couple of years the Profit Margin of STRA has grown nicely.
Looking at the Operating Margin, with a value of 13.50%, STRA is in the better half of the industry, outperforming 71.83% 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.
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 | 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.
STRA has more shares outstanding than it did 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
An Altman-Z score of 3.74 indicates that STRA is not in any danger for bankruptcy at the moment.
The Altman-Z score of STRA (3.74) is better than 80.28% 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 | 3.74 |
ROIC/WACC0.72
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, STRA is in line with its industry, outperforming 50.70% of the companies in the same 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 of 1.26. This is comparable to the rest of the industry: STRA outperforms 53.52% of 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%.
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.
Looking at the last year, STRA shows a small growth in Revenue. The Revenue has grown by 4.31% in the last 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 18.25% yearly.
Based on estimates for the next years, STRA will show a small growth in Revenue. The Revenue will grow by 4.35% on average per year.
EPS Next Y17.99%
EPS Next 2Y18.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.69%
Revenue Next 2Y4.35%
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.
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
STRA is valuated correctly with a Price/Earnings ratio of 14.84.
Based on the Price/Earnings ratio, STRA is valued cheaply inside the industry as 81.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.93, STRA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.44, the valuation of STRA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, STRA is valued cheaper than 87.32% of the companies in the same industry.
STRA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
STRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STRA is cheaper than 76.06% 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 81.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 8.01 |
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 18.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y18.25%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 3.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.62, STRA pays a better dividend. On top of this STRA pays more dividend than 95.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, STRA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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 50.95% 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.
DP50.95%
EPS Next 2Y18.25%
EPS Next 3YN/A
77.9
-0.86 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.77%
Inst Owner Change-0.37%
Ins Owners3.03%
Ins Owner Change3.86%
Market Cap1.88B
Analysts84.44
Price Target101.32 (30.06%)
Short Float %2.52%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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)-3.25%
PT rev (3m)-11.57%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-4.06%
EPS NY rev (1m)0%
EPS NY rev (3m)5.59%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.51 | ||
| P/FCF | 15.12 | ||
| P/OCF | 11.32 | ||
| P/B | 1.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.01 |
EPS(TTM)5.25
EY6.74%
EPS(NY)6.81
Fwd EY8.74%
FCF(TTM)5.15
FCFY6.61%
OCF(TTM)6.88
OCFY8.83%
SpS51.43
BVpS68.99
TBVpS-2.51
PEG (NY)0.82
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 | 3.74 |
F-Score8
WACC8.79%
ROIC/WACC0.72
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 Y17.99%
EPS Next 2Y18.25%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.31%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%2.95%
Revenue Next Year3.69%
Revenue Next 2Y4.35%
Revenue Next 3YN/A
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%