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Market Cap

US$2.2b

Last Updated

2021/04/09 22:10 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Undervalued with proven track record.


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 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.


Market Performance


7 Day Return

-2.6%

STRA

1.0%

US Consumer Services

1.6%

US Market


1 Year Return

-32.9%

STRA

26.8%

US Consumer Services

55.3%

US Market

Return vs Industry: STRA underperformed the US Consumer Services industry which returned 26.8% over the past year.

Return vs Market: STRA underperformed the US Market which returned 55.3% over the past year.


Shareholder returns

STRAIndustryMarket
7 Day-2.6%1.0%1.6%
30 Day8.0%-18.6%4.1%
90 Day-0.3%-11.6%5.5%
1 Year-31.3%-32.9%27.1%26.8%58.1%55.3%
3 Year-9.2%-13.7%33.0%28.8%63.8%53.3%
5 Year100.8%88.1%208.0%188.8%120.2%95.7%

Long-Term 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

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 ($90.5) is trading below our estimate of fair value ($194.49)

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 (23.7x) compared to the US Consumer Services industry average (27.5x).

PE vs Market: STRA is poor value based on its PE Ratio (23.7x) compared to the US market (22.3x).


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 (1.3x) compared to the US Consumer Services industry average (2.6x).


Future Growth

How is Strategic Education forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

28.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRA's forecast earnings growth (28.1% per year) is above the savings rate (2%).

Earnings vs Market: STRA's earnings (28.1% per year) are forecast to grow faster than the US market (18.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: STRA's revenue (9.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: STRA's revenue (9.6% 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 (8.8%).


Past Performance

How has Strategic Education performed over the past 5 years?

24.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRA has high quality earnings.

Growing Profit Margin: STRA's current net profit margins (8.4%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: STRA's earnings have grown significantly by 24.5% per year over the past 5 years.

Accelerating Growth: STRA's earnings growth over the past year (6%) is below its 5-year average (24.5% per year).

Earnings vs Industry: STRA earnings growth over the past year (6%) exceeded the Consumer Services industry -0.4%.


Return on Equity

High ROE: STRA's Return on Equity (4.9%) is considered low.


Financial Health

How is Strategic Education's financial position?


Financial Position Analysis

Short Term Liabilities: STRA's short term assets ($286.1M) exceed its short term liabilities ($200.1M).

Long Term Liabilities: STRA's short term assets ($286.1M) do not cover its long term liabilities ($347.4M).


Debt to Equity History and Analysis

Debt Level: STRA's debt to equity ratio (8.1%) is considered satisfactory.

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 (100.8%).

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?

2.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STRA's dividend (2.65%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: STRA's dividend (2.65%) is low compared to the top 25% of dividend payers in the US market (3.5%).


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 reasonable payout ratio (63%), STRA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STRA's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Karl McDonnell (54 yo)

7.92yrs

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 ($USD4.61M) is about average for companies of similar size in the US market ($USD3.68M).

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 years average tenure).


Board Members

Experienced Board: STRA's board of directors are considered experienced (4.5 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 been diluted in the past year, with total shares outstanding growing by 9.9%.


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$2.233b
  • Shares outstanding: 24.16m
  • Website: https://www.strategiceducation.com

Number of Employees


Location

  • Strategic Education, Inc.
  • 2303 Dulles Station Boulevard
  • Herndon
  • Virginia
  • 20171
  • United States

Listings


Biography

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 Zeal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 22:10
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.