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 71 industry peers in the Diversified Consumer Services industry. STRA has an excellent profitability rating, but there are some minor concerns on its financial health. STRA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STRA was profitable.
In the past year STRA had a positive cash flow from operations.
Each year in the past 5 years STRA has been profitable.
STRA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STRA (5.43%) is better than 70.42% of its industry peers.
With a decent Return On Equity value of 6.86%, STRA is doing good in the industry, outperforming 61.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.25%, STRA is in the better half of the industry, outperforming 73.24% 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 10.64%.
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
With a decent Profit Margin value of 9.14%, STRA is doing good in the industry, outperforming 71.83% of the companies in the same industry.
STRA's Profit Margin has improved in the last couple of years.
The Operating Margin of STRA (13.23%) is better than 73.24% of its industry peers.
STRA's Operating Margin has been stable in the last couple of years.
STRA's Gross Margin of 47.21% is in line compared to the rest of the industry. STRA outperforms 53.52% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRA is destroying value.
Compared to 1 year ago, STRA has more shares outstanding
The number of shares outstanding for STRA has been increased compared to 5 years ago.
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 3.94 indicates that STRA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.94, STRA is in the better half of the industry, outperforming 76.06% 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 | 3.94 |
ROIC/WACC0.71
WACC8.85%
2.3 Liquidity
STRA has a Current Ratio of 1.27. 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 (1.27) 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.
With a Quick ratio value of 1.27, STRA perfoms like the industry average, outperforming 54.93% of the companies in the same 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.
The Earnings Per Share has been decreasing by -6.07% on average over the past years.
Looking at the last year, STRA shows a small growth in Revenue. The Revenue has grown by 5.72% 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)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
The Earnings Per Share is expected to grow by 18.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.35% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 16.97, the valuation of STRA can be described as correct.
77.46% of the companies in the same industry are more expensive than STRA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.92. STRA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.61, which indicates a correct valuation of STRA.
81.69% 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 (21.49), we can say STRA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.97 | ||
| Fwd PE | 12.61 |
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.
STRA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. STRA is cheaper than 76.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.64 | ||
| EV/EBITDA | 8.96 |
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.
STRA's earnings are expected to grow with 18.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y18.25%
EPS Next 3YN/A
5. Dividend
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 4.09. STRA pays more dividend than 97.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, STRA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector 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
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 2Y18.25%
EPS Next 3YN/A
85.89
-0.24 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners94.54%
Inst Owner Change2.78%
Ins Owners3.03%
Ins Owner Change3.86%
Market Cap2.08B
Analysts84.44
Price Target104.72 (21.92%)
Short Float %1.92%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)-8.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.97 | ||
| Fwd PE | 12.61 | ||
| P/S | 1.68 | ||
| P/FCF | 17.64 | ||
| P/OCF | 13.02 | ||
| P/B | 1.26 | ||
| P/tB | 11.03 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)5.06
EY5.89%
EPS(NY)6.81
Fwd EY7.93%
FCF(TTM)4.87
FCFY5.67%
OCF(TTM)6.6
OCFY7.68%
SpS51.05
BVpS68.02
TBVpS7.79
PEG (NY)0.94
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 | 3.94 |
F-Score7
WACC8.85%
ROIC/WACC0.71
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 Y17.99%
EPS Next 2Y18.25%
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 2Y4.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.11%
EBIT growth 3Y12.22%
EBIT growth 5Y3.55%
EBIT Next Year61.28%
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%