Strategic Education
Market Cap
US$3.6b
Last Updated
2020/02/15 23:59 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.
Snowflake Analysis
Flawless balance sheet with moderate growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.1%
STRA
2.7%
US Consumer Services
1.8%
US Market
1 Year Return
41.0%
STRA
35.0%
US Consumer Services
20.1%
US Market
Return vs Industry: STRA exceeded the US Consumer Services industry which returned 35.1% over the past year.
Return vs Market: STRA exceeded the US Market which returned 20.1% over the past year.
Shareholder returns
| STRA | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.1% | 2.7% | 1.8% |
| 30 Day | 3.7% | 2.8% | 1.4% |
| 90 Day | 21.2% | 18.4% | 8.8% |
| 1 Year | 42.9%41.0% | 35.4%35.0% | 22.7%20.1% |
| 3 Year | 120.6%112.4% | 124.0%113.8% | 50.1%40.4% |
| 5 Year | 183.8%173.3% | 198.6%164.7% | 72.9%53.9% |
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
3 weeks ago | Simply Wall St
Is Strategic Education, Inc.'s (NASDAQ:STRA) 5.2% ROE Worse Than Average?1 month ago | Simply Wall St
An Intrinsic Calculation For Strategic Education, Inc. (NASDAQ:STRA) Suggests It's 36% Undervalued1 month ago | Simply Wall St
Should You Use Strategic Education's (NASDAQ:STRA) Statutory Earnings To Analyse It?Valuation
Is Strategic Education undervalued compared to its fair value and its price relative to the market?
32.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STRA ($167.93) is trading below our estimate of fair value ($248)
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 (48.3x) compared to the Consumer Services industry average (25.6x).
PE vs Market: STRA is poor value based on its PE Ratio (48.3x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: STRA is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: STRA is overvalued based on its PB Ratio (2.5x) compared to the US Consumer Services industry average (2.2x).
Next Steps
Future Growth
How is Strategic Education forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
34.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STRA's forecast earnings growth (34.3% per year) is above the savings rate (1.7%).
Earnings vs Market: STRA's earnings (34.3% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STRA's revenue (4.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: STRA's revenue (4.6% 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 (11.3%).
Next Steps
Past Performance
How has Strategic Education performed over the past 5 years?
-21.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STRA has high quality earnings.
Growing Profit Margin: STRA became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: STRA's earnings have declined by -21.8% per year over the past 5 years.
Accelerating Growth: STRA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: STRA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (14.8%).
Return on Equity
High ROE: STRA's Return on Equity (5.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Strategic Education's financial position?
Financial Position Analysis
Short Term Liabilities: STRA's short term assets ($505.6M) exceed its short term liabilities ($157.8M).
Long Term Liabilities: STRA's short term assets ($505.6M) exceed its long term liabilities ($178.7M).
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 153.5%.
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
Inventory Level: STRA has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if STRA's debt is covered by short term assets.
Next Steps
Dividend
What is Strategic Education's current dividend yield, its reliability and sustainability?
1.43%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: STRA's dividend (1.43%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: STRA's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.6%), 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 (31.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.9yrs
Average management tenure
CEO
Karl McDonnell (53yo)
6.8yrs
Tenure
US$4,600,125
Compensation
Mr. Karl McDonnell serves as the President and Chief Executive Officer at Strayer Education Inc. since June 2018. Mr. McDonnell was Chief Executive Officer of Strayer Education Inc. from May 2, 2013 to Jun ...
CEO Compensation Analysis
Compensation vs Market: Karl's total compensation ($USD4.60M) is about average for companies of similar size in the US market ($USD4.89M).
Compensation vs Earnings: Karl's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 17yrs | US$4.60m | 1.58% $56.8m | |
| President | 6.8yrs | US$4.60m | 0.44% $16.0m | |
| Executive VP & CFO | 4.9yrs | US$1.81m | 0.15% $5.4m | |
| Senior VP | 1.5yrs | US$1.87m | 0.069% $2.5m | |
| Senior VP & COO | 0yrs | no data | 0.064% $2.3m | |
| Chief Accounting Officer | 4.9yrs | US$514.05k | 0.019% $686.3k | |
| Manager of Investor Relations | 0yrs | no data | no data | |
| Chief Marketing Officer | 1.3yrs | no data | no data | |
| Chief Human Resources | 0yrs | no data | 0.027% $977.0k | |
| President Emerita and Director of Accreditation & Regulatory Affairs - Strayer University | 8.3yrs | US$799.80k | no data |
4.9yrs
Average Tenure
49yo
Average Age
Experienced Management: STRA's management team is considered experienced (4.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 17yrs | US$4.60m | 1.58% $56.8m | |
| President | 6.8yrs | US$4.60m | 0.44% $16.0m | |
| Presiding Independent Director | 2.1yrs | US$152.50k | 0.049% $1.8m | |
| Independent Director | 23.6yrs | US$135.00k | 0.080% $2.9m | |
| Independent Director | 8.8yrs | US$157.50k | 0.035% $1.3m | |
| Independent Director | 23.6yrs | US$160.00k | 0.042% $1.5m | |
| Independent Director | 23.6yrs | US$150.00k | 0.070% $2.5m | |
| Vice Chairman | 1.5yrs | US$1.24m | 0.14% $5.2m | |
| Independent Director | 1.5yrs | US$57.50k | 0.038% $1.4m | |
| Independent Director | 3.3yrs | US$155.00k | 0.014% $488.7k |
8.5yrs
Average Tenure
62.5yo
Average Age
Experienced Board: STRA's board of directors are considered experienced (8.5 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 substantially diluted in the past year, with total shares outstanding growing by 72.4%.
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$3.607b
- Shares outstanding: 21.48m
- 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 University, Capella University, and Non-Degree Programs. It 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 74 physical campuses located in the eastern United States, as well as through online; and an executive MBA online through its Jack Welch Management Institute. The company also operates Capella University, an online post-secondary education company, which offers various bachelor's, master's, and doctoral degree programs in public service leadership, nursing and health sciences, psychology, business and technology, counseling and human services, and education primarily for working adults. In addition, it is involved in the operation of a software development school that provides Web Development, iOS development, and UX design programs in person at classrooms in Provo and Salt Lake City, Utah; Dallas, Texas; and Phoenix, Arizona, as well as through online. Further, the company operates a software engineering school for women, which offers software development programs in person through classrooms in the San Francisco Bay area; and provides non-degree Web and application software development courses, as well as self-paced online learning courses. It offers its non-degree programs primarily for workers and their employers. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/15 23:59 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.