Strategic Education
Market Cap
US$2.3b
Last Updated
2020/09/18 06:16 UTC
Data Sources
Company Financials +
Executive Summary
Strategic Education, Inc., through its subsidiaries, provides a range of post-secondary education and non-degree programs in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
Similar Companies
Share Price & News
How has Strategic Education's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STRA's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
6.0%
STRA
6.7%
US Consumer Services
1.8%
US Market
1 Year Return
-36.2%
STRA
39.3%
US Consumer Services
14.2%
US Market
Return vs Industry: STRA underperformed the US Consumer Services industry which returned 39.3% over the past year.
Return vs Market: STRA underperformed the US Market which returned 14.2% over the past year.
Shareholder returns
| STRA | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 6.7% | 1.8% |
| 30 Day | -13.4% | -0.3% | 0.04% |
| 90 Day | -35.7% | 15.6% | 9.8% |
| 1 Year | -35.1%-36.2% | 39.8%39.3% | 16.7%14.2% |
| 3 Year | 16.6%11.8% | 54.9%49.4% | 41.6%32.2% |
| 5 Year | 72.6%64.0% | 252.5%227.4% | 90.9%69.5% |
Price Volatility Vs. Market
How volatile is Strategic Education's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Is Strategic Education, Inc. (NASDAQ:STRA) Trading At A 32% Discount?2 weeks ago | Simply Wall St
There's A Lot To Like About Strategic Education's (NASDAQ:STRA) Upcoming US$0.60 Dividend3 weeks ago | Simply Wall St
Is Strategic Education's (NASDAQ:STRA) Share Price Gain Of 102% Well Earned?Valuation
Is Strategic Education undervalued compared to its fair value and its price relative to the market?
26.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STRA ($93.8) is trading below our estimate of fair value ($127.58)
Significantly Below Fair Value: STRA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STRA is good value based on its PE Ratio (17.8x) compared to the US Consumer Services industry average (33.1x).
PE vs Market: STRA is good value based on its PE Ratio (17.8x) compared to the US market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: STRA is poor value based on its PEG Ratio (5.2x)
Price to Book Ratio
PB vs Industry: STRA is good value based on its PB Ratio (1.4x) compared to the US Consumer Services industry average (2.1x).
Next Steps
Future Growth
How is Strategic Education forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
3.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STRA's forecast earnings growth (3.5% per year) is above the savings rate (2.2%).
Earnings vs Market: STRA's earnings (3.5% per year) are forecast to grow slower than the US market (23.3% per year).
High Growth Earnings: STRA's earnings are forecast to grow, but not significantly.
Revenue vs Market: STRA's revenue (5.8% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: STRA's revenue (5.8% 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 STRA's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Strategic Education performed over the past 5 years?
11.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STRA has high quality earnings.
Growing Profit Margin: STRA's current net profit margins (11.2%) are higher than last year (0.7%).
Past Earnings Growth Analysis
Earnings Trend: STRA's earnings have grown by 11.7% per year over the past 5 years.
Accelerating Growth: STRA's earnings growth over the past year (1708.4%) exceeds its 5-year average (11.7% per year).
Earnings vs Industry: STRA earnings growth over the past year (1708.4%) exceeded the Consumer Services industry 10.1%.
Return on Equity
High ROE: STRA's Return on Equity (7.7%) is considered low.
Next Steps
Financial Health
How is Strategic Education's financial position?
Financial Position Analysis
Short Term Liabilities: STRA's short term assets ($553.5M) exceed its short term liabilities ($148.9M).
Long Term Liabilities: STRA's short term assets ($553.5M) exceed its long term liabilities ($158.1M).
Debt to Equity History and Analysis
Debt Level: STRA is debt free.
Reducing Debt: STRA has no debt compared to 5 years ago when its debt to equity ratio was 93.8%.
Debt Coverage: STRA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: STRA has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Strategic Education current dividend yield, its reliability and sustainability?
2.56%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STRA's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: STRA's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (4.65%).
Stability and Growth of Payments
Stable Dividend: STRA's dividend payments have been volatile in the past 10 years.
Growing Dividend: STRA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (43.7%), STRA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Karl McDonnell (54 yo)
7.33yrs
Tenure
US$7,417,025
Compensation
Mr. Karl McDonnell serves as the President and Chief Executive Officer at Strategic Education, Inc. (formerly known as Strayer Education, Inc.). since June 2018. Mr. McDonnell was Chief Executive Officer o ...
CEO Compensation Analysis
Compensation vs Market: Karl's total compensation ($USD7.42M) is above average for companies of similar size in the US market ($USD4.56M).
Compensation vs Earnings: Karl's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 17.58yrs | US$7.07m | 0.47% $ 10.8m | |
| President | 7.33yrs | US$7.42m | 0.48% $ 10.9m | |
| Executive VP & CFO | 5.5yrs | US$2.25m | 0.16% $ 3.7m | |
| Chief Operating Officer | 1.58yrs | US$2.12m | 0.081% $ 1.8m | |
| Senior VP | 2.08yrs | US$1.14m | 0.072% $ 1.6m | |
| Chief Accounting Officer | 5.5yrs | US$514.05k | 0.024% $ 552.0k | |
| Manager of Investor Relations | no data | no data | no data | |
| Chief Marketing Officer | 1.92yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | no data | no data | 0.038% $ 866.5k | |
| President Emerita and Director of Accreditation & Regulatory Affairs - Strayer University | 8.92yrs | US$799.80k | no data | |
| President Emeritus & Director of Community College Relations - Strayer University | 5.42yrs | US$1.54m | no data | |
| Chief Academic Officer & Provost | no data | no data | no data |
5.5yrs
Average Tenure
50.5yo
Average Age
Experienced Management: STRA's management team is seasoned and experienced (5.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 17.58yrs | US$7.07m | 0.47% $ 10.8m | |
| President | 7.33yrs | US$7.42m | 0.48% $ 10.9m | |
| Presiding Independent Director | 2.67yrs | US$160.00k | 0.029% $ 663.4k | |
| Independent Director | 9.42yrs | US$150.00k | 0.030% $ 688.4k | |
| Independent Director | 24.17yrs | US$160.00k | 0.039% $ 886.5k | |
| Independent Director | 24.17yrs | US$150.00k | 0.064% $ 1.5m | |
| Independent Director | 2.08yrs | US$150.00k | 0.023% $ 515.7k | |
| Vice Chairman | 2.08yrs | US$1.64m | 0.021% $ 482.1k | |
| Independent Director | 2.08yrs | US$155.00k | 0.036% $ 820.9k | |
| Independent Director | 3.92yrs | US$155.00k | 0.014% $ 319.9k |
6.4yrs
Average Tenure
62yo
Average Age
Experienced Board: STRA's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.7%.
Top Shareholders
Company Information
Strategic Education, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Strategic Education, Inc.
- Ticker: STRA
- Exchange: NasdaqGS
- Founded: 1892
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$2.269b
- Shares outstanding: 24.19m
- Website: https://www.strategiceducation.com
Number of Employees
Location
- Strategic Education, Inc.
- 2303 Dulles Station Boulevard
- Herndon
- Virginia
- 20171
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STRA | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 1996 |
| SQE | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1996 |
Biography
Strategic Education, Inc., through its subsidiaries, provides a range of post-secondary education and non-degree programs in the United States. The company operates through three segments: Strayer Universi ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/18 06:16 |
| End of Day Share Price | 2020/09/17 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.