Market Cap
€695.0m
Last Updated
2019/12/13 21:33 UTC
Data Sources
Company Financials +
Executive Summary
K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with proven track record.
Similar Companies
Share Price & News
How has K12's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 3KA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.2%
3KA
0.9%
DE Consumer Services
1.0%
DE Market
1 Year Return
-12.5%
3KA
13.5%
DE Consumer Services
15.7%
DE Market
Return vs Industry: 3KA underperformed the German Consumer Services industry which returned 13.5% over the past year.
Return vs Market: 3KA underperformed the German Market which returned 15.7% over the past year.
Shareholder returns
| 3KA | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.2% | 0.9% | 1.0% |
| 30 Day | -2.2% | -1.0% | 1.0% |
| 90 Day | -34.7% | 2.3% | 6.7% |
| 1 Year | -12.5%-12.5% | 15.4%13.5% | 19.3%15.7% |
| 3 Year | 10.1%10.1% | 6.7%0.9% | 19.5%8.9% |
| 5 Year | 79.2%79.2% | -43.5%-58.7% | 36.9%18.3% |
Price Volatility Vs. Market
How volatile is K12's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is K12 undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 3KA (€17.5) is trading below our estimate of fair value (€47.31)
Significantly Below Fair Value: 3KA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 3KA is poor value based on its PE Ratio (21.6x) compared to the Consumer Services industry average (13.8x).
PE vs Market: 3KA is poor value based on its PE Ratio (21.6x) compared to the German market (20.5x).
Price to Earnings Growth Ratio
PEG Ratio: 3KA is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: 3KA is good value based on its PB Ratio (1.2x) compared to the XE Consumer Services industry average (2.3x).
Next Steps
Future Growth
How is K12 forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
10.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 3KA's forecast earnings growth (10.2% per year) is above the savings rate (-0.4%).
Earnings vs Market: 3KA's earnings (10.2% per year) are forecast to grow slower than the German market (13.3% per year).
High Growth Earnings: 3KA's earnings are forecast to grow, but not significantly.
Revenue vs Market: 3KA's revenue (4.1% per year) is forecast to grow slower than the German market (4.9% per year).
High Growth Revenue: 3KA's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if 3KA's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has K12 performed over the past 5 years?
22.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 3KA has high quality earnings.
Growing Profit Margin: 3KA's current net profit margins (3.5%) are higher than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: 3KA's earnings have grown significantly by 22.3% per year over the past 5 years.
Accelerating Growth: 3KA's earnings growth over the past year (30.5%) exceeds its 5-year average (22.3% per year).
Earnings vs Industry: 3KA earnings growth over the past year (30.5%) underperformed the Consumer Services industry 52.7%.
Return on Equity
High ROE: 3KA's Return on Equity (5.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is K12's financial position?
Financial Position Analysis
Short Term Liabilities: 3KA's short term assets ($498.3M) exceed its short term liabilities ($139.7M).
Long Term Liabilities: 3KA's short term assets ($498.3M) exceed its long term liabilities ($49.1M).
Debt to Equity History and Analysis
Debt Level: 3KA is debt free.
Reducing Debt: 3KA had no debt 5 years ago.
Debt Coverage: 3KA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 3KA has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 3KA has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 3KA's debt is covered by short term assets.
Next Steps
Dividend
What is K12's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate 3KA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 3KA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 3KA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 3KA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 3KA's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
What is the CEO of K12's salary, the management and board of directors tenure and is there insider trading?
1.9yrs
Average management tenure
CEO
Nate Davis (65yo)
1.8yrs
Tenure
US$9,785,697
Compensation
Mr. Nathaniel Alonzo Davis, also known as Nate, is Executive Chairman at K12, Inc. since January 2013 and is its Chief Executive Officer since March 2018. Mr. Davis is Managing Director and Board Manager a ...
CEO Compensation Analysis
Compensation vs Market: Nate's total compensation ($USD9.79M) is above average for companies of similar size in the German market ($USD1.28M).
Compensation vs Earnings: Nate's compensation has increased by more than 20% in the past year.
Management Age and Tenure
1.9yrs
Average Tenure
55yo
Average Age
Experienced Management: 3KA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Age and Tenure
7.2yrs
Average Tenure
67.5yo
Average Age
Experienced Board: 3KA's board of directors are considered experienced (7.2 years average tenure).
Insider Trading
Insider Buying: 3KA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Unit President President of Academics |
| Shares | 15,000 |
| Max Price | €18.52 |
| Entity | Individual |
| Role | Unit President President of Academics |
| Shares | 4,000 |
| Max Price | €27.36 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Executive Chairman |
| Shares | 100,000 |
| Max Price | €25.47 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Nate Davis (65yo)
CEO & Executive Chairman
- Tenure: 1.8yrs
- Compensation: US$9.79m
Vincent Mathis (55yo)
- Tenure: 1.3yrs
- Compensation: US$3.99m
Jeff Kwitowski
Senior Vice President of Corporate Communications
- Tenure: 0yrs
Shaun McAlmont (53yo)
President of Career Readiness Education
- Tenure: 1.3yrs
- Compensation: US$5.19m
James Rhyu (49yo)
CFO and President of Product & Technology
- Tenure: 6.5yrs
- Compensation: US$4.68m
Val Maddy
Senior Vice President of Human Resources
- Tenure: 6.8yrs
Mike Kraft
Senior Vice President of Corporate Communications
- Tenure: 0yrs
Rob Banwarth
Chief Information Officer & Senior VP
- Tenure: 4.8yrs
Kevin Chavous (63yo)
President of Academics
- Tenure: 2.1yrs
- Compensation: US$4.33m
Todd Goldthwaite
Senior VP & Chief Marketing Officer
- Tenure: 0.9yrs
Board Members
Nate Davis (65yo)
CEO & Executive Chairman
- Tenure: 1.8yrs
- Compensation: US$9.79m
Bill Bron (67yo)
Independent Director
- Tenure: 12.4yrs
- Compensation: US$200.00k
Bob Knowling (64yo)
Independent Director
- Tenure: 1.9yrs
- Compensation: US$195.00k
Steve Fink (68yo)
Independent Director
- Tenure: 16.2yrs
- Compensation: US$225.00k
Craig Barrett (80yo)
Lead Independent Director
- Tenure: 2.3yrs
- Compensation: US$190.00k
Mary Futrell (79yo)
Member of Educational Advisory Committee
- Tenure: 0yrs
- Compensation: US$30.00k
John Engler (70yo)
Independent Director
- Tenure: 7.2yrs
- Compensation: US$205.00k
David Driscoll
Member of Education Advisory Committee
- Tenure: 0yrs
Liza McFadden (56yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$195.00k
Elanna Yalow
Member of Educational Advisory Committee
- Tenure: 0yrs
Company Information
K12 Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: K12 Inc.
- Ticker: 3KA
- Exchange: DB
- Founded: 2000
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$773.053m
- Listing Market Cap: US$694.975m
- Shares outstanding: 39.18m
- Website: https://www.k12.com
Number of Employees
Location
- K12 Inc.
- 2300 Corporate Park Drive
- Herndon
- Virginia
- 20171
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LRN | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2007 |
| 3KA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2007 |
Biography
K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students pri ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/13 21:33 |
| End of Day Share Price | 2019/12/13 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.