| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 5/6 |
| Dividends | 3/6 |
STRA Stock Overview
Strategic Education, Inc., through its subsidiaries, provides post-secondary education and non-degree programs.
Strategic Education Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$54.93 |
| 52 Week High | US$96.73 |
| 52 Week Low | US$52.67 |
| Beta | 0.53 |
| 1 Month Change | -5.89% |
| 3 Month Change | -22.73% |
| 1 Year Change | -38.18% |
| 3 Year Change | -51.65% |
| 5 Year Change | -32.87% |
| Change since IPO | 666.47% |
Recent News & Updates
Is Strategic Education (NASDAQ:STRA) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Strategic Education: Checking On The Thesis
STRA reported two consecutive weak quarters, which resulted in a significant reduction in earnings guidance. Enrollment trends remain weak, particularly evidenced by Google Trends searches, but haven't accelerated. With insider purchases and valued at 9x TTM FCF, shares should have limited downside. Again, FY22 could be the company's year to shine.
Strategic Education (NASDAQ:STRA) Has Affirmed Its Dividend Of US$0.60
The board of Strategic Education, Inc. ( NASDAQ:STRA ) has announced that it will pay a dividend of US$0.60 per share...
Shareholder Returns
| STRA | US Consumer Services | US Market | |
|---|---|---|---|
| 7D | -5.3% | -3.2% | -4.0% |
| 1Y | -38.2% | -67.8% | 6.6% |
Return vs Industry: STRA exceeded the US Consumer Services industry which returned -65.4% over the past year.
Return vs Market: STRA underperformed the US Market which returned 7.7% over the past year.
Price Volatility
| STRA volatility | |
|---|---|
| STRA Average Weekly Movement | 5.3% |
| Consumer Services Industry Average Movement | 9.7% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: STRA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: STRA's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1892 | 3,679 | Karl McDonnell | https://www.strategiceducation.com |
Strategic Education, Inc., through its subsidiaries, provides post-secondary education and non-degree programs. It operates in three segments: Strayer University, Capella University, and Australia/New Zealand. The company operates Strayer University that provides undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration, and criminal justice for working adult students through its 64 physical campuses located in the eastern United States, as well as through online; and an executive MBA online through its Jack Welch Management Institute.
Strategic Education Fundamentals Summary
| STRA fundamental statistics | |
|---|---|
| Market Cap | US$1.34b |
| Earnings (TTM) | US$39.32m |
| Revenue (TTM) | US$1.13b |
34.0x
P/E Ratio1.2x
P/S RatioIs STRA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STRA income statement (TTM) | |
|---|---|
| Revenue | US$1.13b |
| Cost of Revenue | US$606.40m |
| Gross Profit | US$520.68m |
| Expenses | US$481.36m |
| Earnings | US$39.32m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 25, 2022
| Earnings per share (EPS) | 1.61 |
| Gross Margin | 46.20% |
| Net Profit Margin | 3.49% |
| Debt/Equity Ratio | 8.4% |
How did STRA perform over the long term?
See historical performance and comparisonDividends
4.4%
Current Dividend Yield146%
Payout RatioValuation
Is Strategic Education 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: STRA ($54.83) is trading below our estimate of fair value ($177.91)
Significantly Below Fair Value: STRA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STRA is poor value based on its PE Ratio (34x) compared to the US Consumer Services industry average (20.4x).
PE vs Market: STRA is poor value based on its PE Ratio (34x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: STRA is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: STRA is good value based on its PB Ratio (0.8x) compared to the US Consumer Services industry average (1.6x).
Future Growth
How is Strategic Education forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
41.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STRA's forecast earnings growth (41.3% per year) is above the savings rate (2%).
Earnings vs Market: STRA's earnings (41.3% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STRA's revenue (1.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: STRA's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STRA's Return on Equity is forecast to be low in 3 years time (7.3%).
Past Performance
How has Strategic Education performed over the past 5 years?
25.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STRA has a large one-off loss of $45.5M impacting its September 30 2021 financial results.
Growing Profit Margin: STRA's current net profit margins (3.5%) are lower than last year (10.6%).
Past Earnings Growth Analysis
Earnings Trend: STRA's earnings have grown significantly by 25.5% per year over the past 5 years.
Accelerating Growth: STRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STRA had negative earnings growth (-63.9%) over the past year, making it difficult to compare to the Consumer Services industry average (6%).
Return on Equity
High ROE: STRA's Return on Equity (2.3%) is considered low.
Financial Health
How is Strategic Education's financial position?
Financial Position Analysis
Short Term Liabilities: STRA's short term assets ($406.5M) exceed its short term liabilities ($255.6M).
Long Term Liabilities: STRA's short term assets ($406.5M) exceed its long term liabilities ($365.4M).
Debt to Equity History and Analysis
Debt Level: STRA has more cash than its total debt.
Reducing Debt: Insufficient data to determine if STRA's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: STRA's debt is well covered by operating cash flow (102.6%).
Interest Coverage: STRA earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Strategic Education current dividend yield, its reliability and sustainability?
4.37%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STRA's dividend (4.38%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: STRA's dividend (4.38%) is in the top 25% of dividend payers in the US market (3.49%)
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 high payout ratio (146.2%), STRA's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STRA's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Karl McDonnell (55 yo)
8.67yrs
Tenure
US$4,613,413
Compensation
Mr. Karl McDonnell has been Chief Executive Officer at Strategic Education, Inc. May 2, 2013 and its President since June 2018. Mr. McDonnell served as the Chief Operating Officer of Strategic Education, I...
CEO Compensation Analysis
Compensation vs Market: Karl's total compensation ($USD4.61M) is about average for companies of similar size in the US market ($USD3.72M).
Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: STRA's management team is seasoned and experienced (6.8 years average tenure).
Board Members
Experienced Board: STRA's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: STRA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Strategic Education, Inc.'s 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
- Implied Market Cap: US$1.338b
- Shares outstanding: 24.36m
- Website: https://www.strategiceducation.com
Number of Employees
Location
- Strategic Education, Inc.
- 2303 Dulles Station Boulevard
- Herndon
- Virginia
- 20171
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:38 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.