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Strategic Education

Nasdaq:STRA
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STRA
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Strategic Education, Inc., through its subsidiaries, provides a range of post-secondary education and non-degree programs in the United States. The last earnings update was 16 days ago. More info.


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STRA Share Price and Events
7 Day Returns
0.7%
NasdaqGS:STRA
-1.8%
US Consumer Services
-3.1%
US Market
1 Year Returns
35.7%
NasdaqGS:STRA
5.5%
US Consumer Services
-1.7%
US Market
STRA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Strategic Education (STRA) 0.7% -2.7% 0.3% 35.7% 249.5% 192.7%
US Consumer Services -1.8% -1.9% 5% 5.5% 99.1% 108.8%
US Market -3.1% -5.3% -1.2% -1.7% 28.2% 35%
1 Year Return vs Industry and Market
  • STRA outperformed the Consumer Services industry which returned 5.5% over the past year.
  • STRA outperformed the Market in United States of America which returned -1.7% over the past year.
Price Volatility
STRA
Industry
5yr Volatility vs Market

STRA Value

 Is Strategic Education undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Strategic Education to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Strategic Education.

NasdaqGS:STRA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STRA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.78
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.783 (1 + (1- 21%) (3.03%))
0.867
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.867 * 5.96%)
7.9%

Discounted Cash Flow Calculation for NasdaqGS:STRA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Strategic Education is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:STRA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.9%)
2020 154.50 Analyst x1 143.19
2021 189.72 Est @ 22.8% 162.96
2022 221.55 Est @ 16.78% 176.37
2023 249.38 Est @ 12.56% 183.99
2024 273.35 Est @ 9.61% 186.92
2025 293.98 Est @ 7.55% 186.31
2026 311.92 Est @ 6.1% 183.21
2027 327.80 Est @ 5.09% 178.44
2028 342.17 Est @ 4.38% 172.63
2029 355.47 Est @ 3.89% 166.21
Present value of next 10 years cash flows $1,740.22
NasdaqGS:STRA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $355.47 × (1 + 2.73%) ÷ (7.9% – 2.73%)
$7,065.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,065.62 ÷ (1 + 7.9%)10
$3,303.74
NasdaqGS:STRA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,740.22 + $3,303.74
$5,043.96
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,043.96 / 21.46
$235.03
NasdaqGS:STRA Discount to Share Price
Calculation Result
Value per share (USD) From above. $235.03
Current discount Discount to share price of $175.17
= -1 x ($175.17 - $235.03) / $235.03
25.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Strategic Education is available for.
Intrinsic value
25%
Share price is $175.17 vs Future cash flow value of $235.03
Current Discount Checks
For Strategic Education to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Strategic Education's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Strategic Education's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Strategic Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Strategic Education's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:STRA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.27
NasdaqGS:STRA Share Price ** NasdaqGS (2019-08-16) in USD $175.17
United States of America Consumer Services Industry PE Ratio Median Figure of 27 Publicly-Listed Consumer Services Companies 26.24x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Strategic Education.

NasdaqGS:STRA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STRA Share Price ÷ EPS (both in USD)

= 175.17 ÷ 0.27

646.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Strategic Education is overvalued based on earnings compared to the US Consumer Services industry average.
  • Strategic Education is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Strategic Education's expected growth come at a high price?
Raw Data
NasdaqGS:STRA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 646.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
93.3%per year
United States of America Consumer Services Industry PEG Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 1.29x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

NasdaqGS:STRA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 646.43x ÷ 93.3%

6.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Strategic Education is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Strategic Education's assets?
Raw Data
NasdaqGS:STRA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $67.00
NasdaqGS:STRA Share Price * NasdaqGS (2019-08-16) in USD $175.17
United States of America Consumer Services Industry PB Ratio Median Figure of 52 Publicly-Listed Consumer Services Companies 1.89x
United States of America Market PB Ratio Median Figure of 5,261 Publicly-Listed Companies 1.67x
NasdaqGS:STRA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STRA Share Price ÷ Book Value per Share (both in USD)

= 175.17 ÷ 67.00

2.61x

* Primary Listing of Strategic Education.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Strategic Education is overvalued based on assets compared to the US Consumer Services industry average.
X
Value checks
We assess Strategic Education's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Strategic Education has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STRA Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
93.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Strategic Education expected to grow at an attractive rate?
  • Strategic Education's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Strategic Education's earnings growth is expected to exceed the United States of America market average.
  • Strategic Education's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:STRA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:STRA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 93.3%
NasdaqGS:STRA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 8.3%
United States of America Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 32.5%
United States of America Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 14.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:STRA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STRA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,046 199 143 3
2019-12-31 988 155 96 3
NasdaqGS:STRA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 895 120 6
2019-03-31 764 88 -14
2018-12-31 634 47 -16
2018-09-30 511 -3 -45
2018-06-30 458 53 14
2018-03-31 456 49 20
2017-12-31 455 56 21
2017-09-30 455 59 39
2017-06-30 449 55 35
2017-03-31 445 54 33
2016-12-31 441 45 35
2016-09-30 435 53 36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Strategic Education's earnings are expected to grow significantly at over 20% yearly.
  • Strategic Education's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STRA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Strategic Education Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STRA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 7.46 7.46 7.46 1.00
2019-12-31 5.08 5.08 5.08 1.00
NasdaqGS:STRA Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.27
2019-03-31 -0.76
2018-12-31 -1.03
2018-09-30 -3.56
2018-06-30 1.34
2018-03-31 1.82
2017-12-31 1.93
2017-09-30 3.64
2017-06-30 3.34
2017-03-31 3.10
2016-12-31 3.28
2016-09-30 3.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Strategic Education will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Strategic Education's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Strategic Education has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STRA Past Performance

  How has Strategic Education performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Strategic Education's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Strategic Education's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Strategic Education's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Strategic Education's 1-year earnings growth is negative, it can't be compared to the US Consumer Services industry average.
Earnings and Revenue History
Strategic Education's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Strategic Education Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STRA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 894.67 5.58 294.50
2019-03-31 764.22 -13.64 258.30
2018-12-31 634.19 -15.67 225.50
2018-09-30 510.79 -44.62 168.72
2018-06-30 458.36 14.39 139.59
2018-03-31 456.41 19.50 144.63
2017-12-31 454.85 20.61 148.34
2017-09-30 455.42 38.83 149.67
2017-06-30 449.07 35.48 148.07
2017-03-31 444.83 32.96 144.67
2016-12-31 441.09 34.80 144.53
2016-09-30 435.47 36.13 139.75
2016-06-30 432.46 36.97 135.32
2016-03-31 433.72 41.06 131.09
2015-12-31 434.44 40.02 130.64
2015-09-30 436.85 39.93 130.49
2015-06-30 438.46 41.16 129.50
2015-03-31 441.46 42.96 128.87
2014-12-31 446.04 46.36 127.99
2014-09-30 454.05 14.46 129.95
2014-06-30 463.33 12.65 134.07
2014-03-31 482.56 13.98 139.54
2013-12-31 503.60 16.43 142.25
2013-09-30 521.45 52.01 143.84
2013-06-30 535.68 52.96 147.53
2013-03-31 549.95 59.17 147.54
2012-12-31 561.98 65.93 148.29
2012-09-30 575.87 75.97 150.74

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Strategic Education has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Strategic Education used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.
  • Strategic Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Strategic Education's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Strategic Education has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STRA Health

 How is Strategic Education's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Strategic Education's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Strategic Education is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Strategic Education's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Strategic Education's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are -3.4503273013936E+16x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Strategic Education Company Filings, last reported 1 month ago.

NasdaqGS:STRA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,437.88 0.00 414.80
2019-03-31 1,423.44 0.00 388.87
2018-12-31 1,425.22 0.00 348.85
2018-09-30 1,408.33 0.00 314.52
2018-06-30 223.84 0.00 171.60
2018-03-31 218.29 0.00 165.87
2017-12-31 209.20 0.00 155.93
2017-09-30 215.49 0.00 150.48
2017-06-30 209.20 0.00 147.87
2017-03-31 198.53 0.00 147.10
2016-12-31 188.37 0.00 129.25
2016-09-30 173.22 0.00 120.50
2016-06-30 167.94 0.00 117.42
2016-03-31 158.12 0.00 117.50
2015-12-31 142.86 0.00 106.89
2015-09-30 127.18 0.00 86.92
2015-06-30 120.66 115.86 195.56
2015-03-31 106.36 117.38 188.28
2014-12-31 92.73 118.75 162.28
2014-09-30 77.72 119.53 150.47
2014-06-30 69.96 120.42 136.08
2014-03-31 54.17 121.09 126.20
2013-12-31 38.90 121.88 94.76
2013-09-30 56.97 122.69 85.22
2013-06-30 50.96 123.44 67.54
2013-03-31 32.32 125.20 50.76
2012-12-31 40.99 126.21 47.52
2012-09-30 64.99 103.40 45.61
  • Strategic Education's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (171.9% vs 0% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Strategic Education has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Strategic Education's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Strategic Education has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STRA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.14%
Current annual income from Strategic Education dividends. Estimated to be 1.17% next year.
If you bought $2,000 of Strategic Education shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Strategic Education's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.5%).
  • Strategic Education's dividend is below the markets top 25% of dividend payers in United States of America (3.9%).
Upcoming dividend payment

Purchase Strategic Education before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:STRA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 1.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:STRA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 2.10 1.00
2019-12-31 2.00 1.00
NasdaqGS:STRA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-01 2.000 1.128
2018-11-08 2.000 1.594
2018-08-01 2.000 1.524
2018-03-01 1.000 0.930
2017-10-30 1.000 1.076
2017-07-27 1.000 1.201
2017-07-26 1.000 1.251
2017-05-04 1.000 1.099
2017-05-03 1.000 1.080
2017-02-17 1.000 1.252
2017-02-16 1.000 1.286
2015-02-06 0.000 0.000
2014-11-03 0.000 0.000
2014-10-30 0.000 0.000
2014-08-01 0.000 0.000
2014-07-31 0.000 0.000
2014-05-09 0.000 0.000
2014-05-07 0.000 0.000
2014-02-26 0.000 0.000
2014-02-21 0.000 0.000
2013-11-01 0.000 0.000
2013-10-31 0.000 0.000
2013-07-26 0.000 0.000
2013-07-25 0.000 0.000
2013-05-03 0.000 0.000
2013-05-02 0.000 0.000
2012-11-09 4.000 7.690
2012-07-26 4.000 6.105
2012-04-26 4.000 4.221
2012-02-16 4.000 4.169
2011-11-03 4.000 3.971
2011-07-28 4.000 4.448
2011-04-28 4.000 3.139
2011-02-17 4.000 3.022
2010-10-28 4.000 2.923
2010-07-29 3.000 1.853
2010-04-29 3.000 1.288
2010-02-11 3.000 1.259
2009-10-29 3.000 1.452
2009-07-30 2.000 0.934
2009-04-30 2.000 1.000
2009-02-12 2.000 1.154
2008-10-31 2.000 0.931
2008-10-30 2.000 0.913

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Strategic Education's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Strategic Education's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Strategic Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Strategic Education has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STRA Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Karl McDonnell
COMPENSATION $4,600,125
AGE 53
TENURE AS CEO 6.3 years
CEO Bio

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 June 2018. Mr. McDonnell served as the President and Chief Operating Officer of Strayer Education Inc. from July 27, 2006 to May 2, 2013. He joined Strayer Education in July 2006. He served as the Chief Operating Officer of InteliStaf Healthcare. He served as Vice President of the Investment Banking Division at Goldman, Sachs & Co. He held senior management positions with several Fortune 100 companies, including The Walt Disney Company. He has been a Director of Strayer Education Inc. since November 1, 2011. Mr. McDonnell holds a bachelor's degree in political science and American history from Virginia Wesleyan College and an MBA from Duke University.

CEO Compensation
  • Karl's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Karl's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Strategic Education management team in years:

4.4
Average Tenure
50
Average Age
  • The tenure for the Strategic Education management team is about average.
Management Team

Rob Silberman

TITLE
Executive Chairman of the Board
COMPENSATION
$5M
AGE
61

Karl McDonnell

TITLE
President
COMPENSATION
$5M
AGE
53
TENURE
6.3 yrs

Dan Jackson

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
44
TENURE
4.4 yrs

Lizette Herraiz

TITLE
Senior VP
COMPENSATION
$2M
AGE
44
TENURE
1 yrs

Andy Watt

TITLE
Senior VP & COO
AGE
41

Thomas Aprahamian

TITLE
Chief Accounting Officer
COMPENSATION
$514K
AGE
50
TENURE
4.4 yrs

Terese Wilke

TITLE
Manager of Investor Relations

Christa Hokenson

TITLE
Chief Human Resources
AGE
48

Sondra Stallard

TITLE
President Emerita and Director of Accreditation & Regulatory Affairs - Strayer University
COMPENSATION
$800K
AGE
69
TENURE
7.8 yrs

Michael Plater

TITLE
President Emeritus & Director of Community College Relations - Strayer University
COMPENSATION
$2M
AGE
62
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the Strategic Education board of directors in years:

8
Average Tenure
62.5
Average Age
  • The tenure for the Strategic Education board of directors is about average.
Board of Directors

Karl McDonnell

TITLE
President
COMPENSATION
$5M
AGE
53
TENURE
7.8 yrs

J. Gilligan

TITLE
Vice Chairman
COMPENSATION
$1M
AGE
64
TENURE
1 yrs

Rob Silberman

TITLE
Executive Chairman of the Board
COMPENSATION
$5M
AGE
61
TENURE
16.5 yrs

G. Waite

TITLE
Independent Director
COMPENSATION
$160K
AGE
67
TENURE
23.1 yrs

Bob Grusky

TITLE
Presiding Independent Director
COMPENSATION
$153K
AGE
61
TENURE
1.6 yrs

Todd Milano

TITLE
Independent Director
COMPENSATION
$135K
AGE
66
TENURE
23.1 yrs

Charlotte Beason

TITLE
Independent Director
COMPENSATION
$150K
AGE
71
TENURE
23.1 yrs

John Casteen

TITLE
Independent Director
COMPENSATION
$158K
AGE
76
TENURE
8.3 yrs

Nate Fick

TITLE
Independent Director
COMPENSATION
$155K
AGE
41
TENURE
2.8 yrs

H. Dallas

TITLE
Director
COMPENSATION
$58K
AGE
60
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • Strategic Education individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Jun 19 Sell Todd Milano Individual 13. Jun 19 13. Jun 19 -6,449 $181.04 $-1,163,853
14. Jun 19 Sell John Casteen Individual 12. Jun 19 12. Jun 19 -1,400 $180.35 $-252,490
30. May 19 Sell G. Waite Individual 28. May 19 28. May 19 -3,000 $178.59 $-535,770
08. May 19 Sell Robert Grusky Individual 06. May 19 06. May 19 -2,515 $168.00 $-420,483
08. May 19 Sell Karl McDonnell Individual 06. May 19 06. May 19 -22,436 $165.12 $-3,685,036
02. Apr 19 Sell J. Gilligan Individual 01. Apr 19 01. Apr 19 -7,500 $131.69 $-984,722
28. Mar 19 Sell J. Gilligan Individual 25. Mar 19 25. Mar 19 -7,500 $132.18 $-989,545
05. Mar 19 Sell Thomas Aprahamian Individual 04. Mar 19 04. Mar 19 -2,650 $138.24 $-366,336
06. Mar 19 Sell Daniel Jackson Individual 04. Mar 19 05. Mar 19 -5,418 $143.50 $-773,023
06. Mar 19 Sell Lizette Herraiz Individual 05. Mar 19 05. Mar 19 -1,995 $141.21 $-279,795
13. Dec 18 Buy Todd Milano Individual 12. Dec 18 12. Dec 18 280 $122.53 $34,308
03. Dec 18 Sell J. Gilligan Individual 29. Nov 18 29. Nov 18 -3,343 $133.21 $-441,901
26. Nov 18 Sell J. Gilligan Individual 23. Nov 18 23. Nov 18 -5,000 $128.73 $-640,179
16. Nov 18 Sell J. Gilligan Individual 15. Nov 18 15. Nov 18 -5,000 $140.58 $-691,749
14. Nov 18 Sell Robert Grusky Individual 12. Nov 18 12. Nov 18 -507 $144.05 $-73,033
09. Nov 18 Sell J. Gilligan Individual 08. Nov 18 08. Nov 18 -5,000 $144.14 $-713,420
02. Nov 18 Sell J. Gilligan Individual 01. Nov 18 01. Nov 18 -5,000 $124.61 $-623,050
26. Oct 18 Sell J. Gilligan Individual 25. Oct 18 25. Oct 18 -5,000 $125.38 $-623,790
19. Oct 18 Sell J. Gilligan Individual 18. Oct 18 18. Oct 18 -5,000 $131.05 $-651,988
X
Management checks
We assess Strategic Education's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Strategic Education has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STRA News

Simply Wall St News

Is Strategic Education, Inc. (NASDAQ:STRA) Overpaying Its CEO?

First, this article will compare CEO compensation with compensation at similar sized companies. … View our latest analysis for Strategic Education How Does Karl McDonnell's Compensation Compare With Similar Sized Companies? … CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Strategic Education (free visualization of insider trades).

Simply Wall St -

Investors In Strategic Education, Inc. (NASDAQ:STRA) Should Consider This, First

While Strategic Education's 1.1% dividend yield is not the highest, we think its lengthy payment history is quite interesting. … That said, the recent jump in the share price will make Strategic Education's dividend yield look smaller, even though the company prospects could be improving. … Earnings per share are down, and Strategic Education's dividend has been cut at least once in the past, which is disappointing.

Simply Wall St -

Can You Imagine How Chuffed Strategic Education's (NASDAQ:STRA) Shareholders Feel About Its 276% Share Price Gain?

During the three years of share price growth, Strategic Education actually saw its earnings per share (EPS) drop 73% per year. … Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. … A Different Perspective It's good to see that Strategic Education has rewarded shareholders with a total shareholder return of 66% in the last twelve months.

Simply Wall St -

Calculating The Fair Value Of Strategic Education, Inc. (NASDAQ:STRA)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $116.60 $157.50 $191.62 $222.26 $248.94 $271.91 $291.70 $308.94 $324.26 $338.17 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 21.67% Est @ 15.99% Est @ 12.01% Est @ 9.23% Est @ 7.28% Est @ 5.91% Est @ 4.96% Est @ 4.29% Present Value ($, Millions) Discounted @ 8.58% $107.39 $133.59 $149.70 $159.91 $164.96 $165.94 $163.95 $159.92 $154.59 $148.48 Present Value of 10-year Cash Flow (PVCF)= $1.51b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$338m × (1 + 2.7%) ÷ (8.6% – 2.7%) = US$5.9b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$5.9b ÷ ( 1 + 8.6%)10 = $2.61b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $4.12b. … NasdaqGS:STRA Intrinsic value, May 28th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Looking At Strategic Education, Inc. (NASDAQ:STRA) From All Angles

Help shape the future of investing tools and you could win a $250 gift card! … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … financial health as well as

Simply Wall St -

Should You Be Worried About Insider Transactions At Strategic Education, Inc. (NASDAQ:STRA)?

So we'll take a look at whether insiders have been buying or selling shares in Strategic Education, Inc. … As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. … Over the last year we saw more insider selling of Strategic Education shares, than buying

Simply Wall St -

Is Now The Time To Look At Buying Strategic Education, Inc. (NASDAQ:STRA)?

led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. … However, could the stock still be trading at a relatively cheap price. … Let’s take a look at Strategic Education’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Introducing Strategic Education (NASDAQ:STRA), The Stock That Zoomed 201% In The Last Five Years

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Strategic Education's earnings per share are down 16% per year, despite strong share price performance over five years. … So it seems one might have to take closer look at earnings and revenue trends to see how they might influence the share price.

Simply Wall St -

How Much is Strategic Education, Inc.'s (NASDAQ:STRA) CEO Getting Paid?

Karl McDonnell became the CEO of Strategic Education, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Karl McDonnell's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should Strategic Education, Inc. (NASDAQ:STRA) Be Your Next Stock Pick?

I've been keeping an eye on Strategic Education, Inc. … Looking at the company as a whole, as a potential stock investment, I believe STRA has a lot to offer. … is a company with

Simply Wall St -

STRA Company Info

Description

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.

Details
Name: Strategic Education, Inc.
STRA
Exchange: NasdaqGS
Founded: 1892
$3,759,255,579
21,460,613
Website: http://www.strategiceducation.com
Address: Strategic Education, Inc.
2303 Dulles Station Boulevard,
Herndon,
Virginia, 20171,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS STRA Common Stock Nasdaq Global Select US USD 25. Jul 1996
DB SQE Common Stock Deutsche Boerse AG DE EUR 25. Jul 1996
Number of employees
Current staff
Staff numbers
3,088
Strategic Education employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/16 23:53
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/01
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.