STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
NASDAQ:STRA - Nasdaq - US86272C1036 - Common Stock - Currency: USD
STRA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 73 industry peers in the Diversified Consumer Services industry. STRA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. STRA has a correct valuation and a medium 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.
STRA had a positive operating cash flow in the past year.
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 (5.43%) than 75.34% of its industry peers.
STRA has a better Return On Equity (6.86%) than 65.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.25%, STRA is in the better half of the industry, outperforming 75.34% 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 12.00%.
The 3 year average ROIC (4.24%) for STRA is below the current ROIC(6.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 6.86% | ||
| ROIC | 6.25% |
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
Looking at the Profit Margin, with a value of 9.14%, STRA is in the better half of the industry, outperforming 76.71% of the companies in the same industry.
In the last couple of years the Profit Margin of STRA has grown nicely.
STRA has a Operating Margin of 13.23%. This is in the better half of the industry: STRA outperforms 78.08% of its industry peers.
In the last couple of years the Operating Margin of STRA has remained more or less at the same level.
STRA's Gross Margin of 47.21% is in line compared to the rest of the industry. STRA outperforms 53.42% of its industry peers.
STRA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.23% | ||
| PM (TTM) | 9.14% | ||
| GM | 47.21% |
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.
Compared to 5 years ago, STRA has more shares outstanding
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
An Altman-Z score of 4.02 indicates that STRA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.02, STRA belongs to the top of the industry, outperforming 83.56% of the companies in the same industry.
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 | 4.02 |
ROIC/WACC0.69
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.27 indicates that STRA should not have too much problems paying its short term obligations.
STRA has a Current ratio (1.27) which is in line with its industry peers.
A Quick Ratio of 1.27 indicates that STRA should not have too much problems paying its short term obligations.
The Quick ratio of STRA (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.48% over the past year.
STRA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.07% yearly.
STRA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.72%.
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)10.48%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%17.12%
Revenue 1Y (TTM)5.72%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.6%
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 15.82% yearly.
STRA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.43% yearly.
EPS Next Y11.74%
EPS Next 2Y15.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.69%
Revenue Next 2Y4.43%
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 rather expensively with a Price/Earnings ratio of 17.46.
75.34% of the companies in the same industry are more expensive than STRA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of STRA to the average of the S&P500 Index (23.99), we can say STRA is valued slightly cheaper.
STRA is valuated correctly with a Price/Forward Earnings ratio of 13.52.
79.45% of the companies in the same industry are more expensive than STRA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of STRA to the average of the S&P500 Index (20.35), we can say STRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 13.52 |
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 75.34% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
STRA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of STRA may justify a higher PE ratio.
STRA's earnings are expected to grow with 15.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y15.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.74, STRA pays a better dividend. On top of this STRA pays more dividend than 97.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, STRA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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 52.37% 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.
DP52.37%
EPS Next 2Y15.82%
EPS Next 3YN/A
88.36
+0.55 (+0.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners92.71%
Inst Owner Change0.21%
Ins Owners2.93%
Ins Owner Change3.86%
Market Cap2.13B
Analysts84.44
Price Target114.58 (29.67%)
Short Float %2.17%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend2.41
Dividend Growth(5Y)2.49%
DP52.37%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18%
Min EPS beat(2)0.41%
Max EPS beat(2)35.59%
EPS beat(4)4
Avg EPS beat(4)21.84%
Min EPS beat(4)0.41%
Max EPS beat(4)41.57%
EPS beat(8)8
Avg EPS beat(8)28.48%
EPS beat(12)10
Avg EPS beat(12)19.54%
EPS beat(16)12
Avg EPS beat(16)12.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.04%
Min Revenue beat(2)-3.12%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.5%
Revenue beat(8)1
Avg Revenue beat(8)-0.32%
Revenue beat(12)1
Avg Revenue beat(12)-0.99%
Revenue beat(16)1
Avg Revenue beat(16)-1.59%
PT rev (1m)0%
PT rev (3m)-7.67%
EPS NQ rev (1m)-1.78%
EPS NQ rev (3m)-6.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.01%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-1.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 13.52 | ||
| P/S | 1.73 | ||
| P/FCF | 18.15 | ||
| P/OCF | 13.4 | ||
| P/B | 1.3 | ||
| P/tB | 11.35 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)5.06
EY5.73%
EPS(NY)6.53
Fwd EY7.39%
FCF(TTM)4.87
FCFY5.51%
OCF(TTM)6.6
OCFY7.46%
SpS51.05
BVpS68.02
TBVpS7.79
PEG (NY)1.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.43% | ||
| ROE | 6.86% | ||
| ROCE | 8.99% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.95% | ||
| ROICexgc | 64.11% | ||
| OM | 13.23% | ||
| PM (TTM) | 9.14% | ||
| GM | 47.21% | ||
| FCFM | 9.54% |
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-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 93.72% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.75% | ||
| Profit Quality | 104.37% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 4.02 |
F-Score7
WACC9.06%
ROIC/WACC0.69
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)10.48%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%17.12%
EPS Next Y11.74%
EPS Next 2Y15.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.72%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.6%
Revenue Next Year3.69%
Revenue Next 2Y4.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.11%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year57.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.04%
FCF growth 3Y-0.6%
FCF growth 5Y-4.65%
OCF growth 1Y52.2%
OCF growth 3Y-2.11%
OCF growth 5Y-3.48%