NasdaqGS:STRA

Stock Analysis Report

Executive Summary

Strategic Education, Inc., through its subsidiaries, provides a range of post-secondary education and non-degree programs in the United States.

Snowflake

Fundamentals

Flawless balance sheet with reasonable 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


Market Performance


7 Day Return

3.9%

STRA

-0.05%

US Consumer Services

1.0%

US Market


1 Year Return

11.0%

STRA

25.0%

US Consumer Services

6.7%

US Market

Return vs Industry: STRA underperformed the US Consumer Services industry which returned 25% over the past year.

Return vs Market: STRA exceeded the US Market which returned 6.7% over the past year.


Share holder returns

STRAIndustryMarket
7 Day3.9%-0.05%1.0%
30 Day-10.8%-0.9%-1.8%
90 Day-23.5%-1.9%-1.8%
1 Year12.5%11.0%25.5%25.0%9.1%6.7%
3 Year216.4%206.1%103.8%93.0%46.1%36.6%
5 Year120.0%112.8%144.9%119.8%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

42%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: STRA ($139.17) is trading below our estimate of fair value ($240.45)

Significantly Undervalued: STRA is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: STRA is poor value based on its PE Ratio (513.6x) compared to the Consumer Services industry average (26.2x).

PE vs Market: STRA is poor value based on its PE Ratio (513.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: STRA is poor value based on its PEG Ratio (5.5x)


Price Based on Value of Assets

PB vs Industry: STRA is good value based on its PB Ratio (2.1x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

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

93.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: STRA's forecast earnings growth (93.3% per year) is above the savings rate (2.7%).

Earnings vs Market: STRA's earnings (93.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: STRA's revenue (8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: STRA's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

-31.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STRA's earnings have declined by -31% 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 (-61.2%) over the past year, making it difficult to compare to the Consumer Services industry average (5.5%).


Return on Equity

High ROE: STRA's Return on Equity (0.4%) is considered low.


Return on Assets

ROA vs Industry: STRA's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: STRA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Strategic Education's financial position?


Financial Position Analysis

Short Term Liabilities: STRA's short term assets ($490.3M) exceeds its short term liabilities ($153.8M)

Long Term Liabilities: STRA's short term assets (490.3M) exceeds its long term liabilities (192.9M)


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 171.9%.

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: STRA's debt is not covered by short term assets (assets are -3.4503273013936E+16x debt).


Next Steps

Dividend

What is Strategic Education's current dividend yield, its reliability and sustainability?

1.47%

Expected Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.4%forecastin3Years1.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: STRA's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: STRA's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: STRA's dividend payments have been volatile in the past 10 years.

Growing Dividend: STRA's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (738.1%), STRA's dividend payments are not 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

What is the CEO of Strategic Education's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Karl McDonnell (53yo)

6.4yrs

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 ($USD4.60M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Karl's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

50yo

Average Age

Experienced Management: STRA's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: STRA's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,163,85314 Jun 19
Todd Milano
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,449
Max PriceUS$181.04
SellUS$252,49014 Jun 19
John Casteen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,400
Max PriceUS$180.35
SellUS$535,77030 May 19
G. Waite
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$178.59
SellUS$420,48308 May 19
Robert Grusky
EntityIndividual
Role
Lead Director
Presiding Independent Director
Shares2,515
Max PriceUS$168.00
SellUS$3,685,03608 May 19
Karl McDonnell
EntityIndividual
Role
Chief Executive Officer
President
Shares22,436
Max PriceUS$165.12
SellUS$984,72202 Apr 19
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares7,500
Max PriceUS$131.69
SellUS$989,54528 Mar 19
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares7,500
Max PriceUS$132.18
SellUS$773,02306 Mar 19
Daniel Jackson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,418
Max PriceUS$143.50
SellUS$279,79506 Mar 19
Lizette Herraiz
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,995
Max PriceUS$141.21
SellUS$366,33605 Mar 19
Thomas Aprahamian
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares2,650
Max PriceUS$138.24
BuyUS$34,30813 Dec 18
Todd Milano
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares280
Max PriceUS$122.53
SellUS$441,90103 Dec 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares3,343
Max PriceUS$133.21
SellUS$640,17926 Nov 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceUS$128.73
SellUS$691,74916 Nov 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceUS$140.58
SellUS$73,03314 Nov 18
Robert Grusky
EntityIndividual
Role
Lead Director
Presiding Independent Director
Shares507
Max PriceUS$144.05
SellUS$713,42009 Nov 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceUS$144.14
SellUS$623,05002 Nov 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceUS$124.61
SellUS$623,79026 Oct 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceUS$125.38
SellUS$651,98819 Oct 18
J. Gilligan
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares5,000
Max PriceUS$131.05

Ownership Breakdown


Management Team

  • Rob Silberman (61yo)

    Executive Chairman of the Board

    • Tenure: 16.7yrs
    • Compensation: US$4.60m
  • Thomas Aprahamian (50yo)

    Chief Accounting Officer

    • Tenure: 4.6yrs
    • Compensation: US$514.05k
  • Terese Wilke

    Manager of Investor Relations

    • Tenure: 0yrs
  • Karl McDonnell (53yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$4.60m
  • Sondra Stallard (69yo)

    President Emerita and Director of Accreditation & Regulatory Affairs - Strayer University

    • Tenure: 8yrs
    • Compensation: US$799.80k
  • Dan Jackson (44yo)

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$1.81m
  • Michael Plater (62yo)

    President Emeritus & Director of Community College Relations - Strayer University

    • Tenure: 4.5yrs
    • Compensation: US$1.54m
  • Andy Watt (41yo)

    Senior VP & COO

    • Tenure: 0yrs
  • Lizette Herraiz (44yo)

    Senior VP

    • Tenure: 1.2yrs
    • Compensation: US$1.87m
  • Christa Hokenson (48yo)

    Chief Human Resources

    • Tenure: 0yrs

Board Members

  • Bob Grusky (61yo)

    Presiding Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$152.50k
  • Todd Milano (66yo)

    Independent Director

    • Tenure: 23.3yrs
    • Compensation: US$135.00k
  • Rob Silberman (61yo)

    Executive Chairman of the Board

    • Tenure: 16.7yrs
    • Compensation: US$4.60m
  • John Casteen (76yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$157.50k
  • G. Waite (67yo)

    Independent Director

    • Tenure: 23.3yrs
    • Compensation: US$160.00k
  • Charlotte Beason (71yo)

    Independent Director

    • Tenure: 23.3yrs
    • Compensation: US$150.00k
  • J. Gilligan (64yo)

    Vice Chairman

    • Tenure: 1.2yrs
    • Compensation: US$1.24m
  • H. Dallas (60yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$57.50k
  • Karl McDonnell (53yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$4.60m
  • Nate Fick (41yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$155.00k

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$2.987b
  • Shares outstanding: 21.46m
  • Website: https://www.strategiceducation.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STRANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1996
SQEDB (Deutsche Boerse AG)YesCommon StockDEEURJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:30
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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