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STRA

Strategic EducationNasdaqGS:STRA Stock Report

Last Price

US$54.93

Market Cap

US$1.3b

7D

-5.3%

1Y

-38.2%

Updated

21 Jan, 2022

Data

Company Financials +
STRA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends3/6

STRA Stock Overview

Strategic Education, Inc., through its subsidiaries, provides post-secondary education and non-degree programs.

Strategic Education Competitors

Chegg

NYSE:CHGG

US$3.8b

Grand Canyon Education

NasdaqGS:LOPE

US$3.3b

Graham Holdings

NYSE:GHC

US$2.9b

Houghton Mifflin Harcourt

NasdaqGS:HMHC

US$2.1b

Price History & Performance

Summary of all time highs, changes and price drops for Strategic Education
Historical stock prices
Current Share PriceUS$54.93
52 Week HighUS$96.73
52 Week LowUS$52.67
Beta0.53
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 IPO666.47%

Recent News & Updates

Jan 18
Is Strategic Education (NASDAQ:STRA) A Risky Investment?

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...

Dec 21

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.

Nov 25
Strategic Education (NASDAQ:STRA) Has Affirmed Its Dividend Of US$0.60

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

STRAUS Consumer ServicesUS 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

Is STRA's price volatile compared to industry and market?
STRA volatility
STRA Average Weekly Movement5.3%
Consumer Services Industry Average Movement9.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
18923,679Karl McDonnellhttps://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

How do Strategic Education's earnings and revenue compare to its market cap?
STRA fundamental statistics
Market CapUS$1.34b
Earnings (TTM)US$39.32m
Revenue (TTM)US$1.13b

34.0x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STRA income statement (TTM)
RevenueUS$1.13b
Cost of RevenueUS$606.40m
Gross ProfitUS$520.68m
ExpensesUS$481.36m
EarningsUS$39.32m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 25, 2022

Earnings per share (EPS)1.61
Gross Margin46.20%
Net Profit Margin3.49%
Debt/Equity Ratio8.4%

How did STRA perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

146%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.