STRATEGIC EDUCATION INC (STRA) Stock Fundamental Analysis
USA - NASDAQ:STRA - US86272C1036 - Common Stock
80.64 USD
+0.76 (+0.95%)
80.64 USD
0 (0%)
Overall STRA gets a fundamental rating of 6 out of 10. We evaluated STRA against 78 industry peers in the Diversified Consumer Services industry. STRA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. STRA has a correct valuation and a medium growth rate. Finally STRA also has an excellent dividend rating. With these ratings, STRA could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year STRA was profitable.
STRA had a positive operating cash flow in the past year.
In the past 5 years STRA has always been profitable.
Each year in the past 5 years STRA had a positive operating cash flow.
1.2 Ratios
STRA has a Return On Assets of 5.51%. This is in the better half of the industry: STRA outperforms 71.79% of its industry peers.
STRA's Return On Equity of 6.91% is fine compared to the rest of the industry. STRA outperforms 62.82% of its industry peers.
STRA's Return On Invested Capital of 6.35% is fine compared to the rest of the industry. STRA outperforms 73.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STRA is significantly below the industry average of 9.31%.
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
With a decent Profit Margin value of 9.27%, STRA is doing good in the industry, outperforming 71.79% of the companies in the same industry.
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 71.79% 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 of 47.36%. This is comparable to the rest of the industry: STRA outperforms 51.28% of 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.
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.
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
STRA has an Altman-Z score of 3.75. This indicates that STRA is financially healthy and has little risk of bankruptcy at the moment.
STRA has a Altman-Z score of 3.75. This is amongst the best in the industry. STRA outperforms 84.62% 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 | 3.75 |
ROIC/WACC0.74
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.26 indicates that STRA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, STRA perfoms like the industry average, outperforming 55.13% of the companies in the same industry.
STRA has a Quick 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.
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
The Earnings Per Share has grown by an nice 8.33% 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.
Looking at the last year, STRA shows a small growth in Revenue. The Revenue has grown by 7.68% 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)8.33%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%40.52%
Revenue 1Y (TTM)7.68%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
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.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y16.38%
EPS Next 2Y15.51%
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
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.10, 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 75.64% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STRA to the average of the S&P500 Index (26.34), we can say STRA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.41, STRA is valued correctly.
Based on the Price/Forward Earnings ratio, STRA is valued a bit cheaper than the industry average as 78.21% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.43. STRA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
STRA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STRA is cheaper than 76.92% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STRA indicates a somewhat cheap valuation: STRA is cheaper than 74.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.49 | ||
| EV/EBITDA | 8.04 |
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.
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)0.86
PEG (5Y)N/A
EPS Next 2Y15.51%
EPS Next 3Y16.66%
5. Dividend
5.1 Amount
STRA has a Yearly Dividend Yield of 3.00%. 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 2.07. STRA pays more dividend than 97.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, STRA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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
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.
The dividend of STRA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.95%
EPS Next 2Y15.51%
EPS Next 3Y16.66%
80.64
+0.76 (+0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.12%
Inst Owner Change-0.64%
Ins Owners3.06%
Ins Owner Change-0.06%
Market Cap1.93B
Revenue(TTM)1.22B
Net Income(TTM)115.16M
Analysts84.44
Price Target103.36 (28.17%)
Short Float %2.63%
Short Ratio4.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)2.01%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.41 | ||
| P/S | 1.55 | ||
| P/FCF | 15.49 | ||
| P/OCF | 11.59 | ||
| P/B | 1.16 | ||
| P/tB | 10.28 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)5.72
EY7.09%
EPS(NY)6.5
Fwd EY8.06%
FCF(TTM)5.21
FCFY6.46%
OCF(TTM)6.96
OCFY8.63%
SpS51.99
BVpS69.74
TBVpS7.84
PEG (NY)0.86
PEG (5Y)N/A
Graham Number94.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.51% | ||
| ROE | 6.91% | ||
| ROCE | 9.13% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.98% | ||
| ROICexgc | 60.51% | ||
| 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%
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-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 | 3.75 |
F-Score8
WACC8.64%
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)8.33%
EPS 3Y0.34%
EPS 5Y-6.07%
EPS Q2Q%40.52%
EPS Next Y16.38%
EPS Next 2Y15.51%
EPS Next 3Y16.66%
EPS Next 5YN/A
Revenue 1Y (TTM)7.68%
Revenue growth 3Y2.53%
Revenue growth 5Y4.12%
Sales Q2Q%4.57%
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%
STRATEGIC EDUCATION INC / STRA FAQ
What is the ChartMill fundamental rating of STRATEGIC EDUCATION INC (STRA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to STRA.
What is the valuation status of STRATEGIC EDUCATION INC (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 7 / 10.
What is the expected EPS growth for STRATEGIC EDUCATION INC (STRA) stock?
The Earnings per Share (EPS) of STRATEGIC EDUCATION INC (STRA) is expected to grow by 16.38% in the next year.
Can you provide the dividend sustainability for STRA stock?
The dividend rating of STRATEGIC EDUCATION INC (STRA) is 7 / 10 and the dividend payout ratio is 50.95%.