NasdaqGS:STRA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with flawless balance sheet.


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 +/- 7% a week.

Volatility Over Time: STRA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

STRA

-0.7%

US Consumer Services

1.8%

US Market


1 Year Return

-35.7%

STRA

36.1%

US Consumer Services

20.4%

US Market

Return vs Industry: STRA underperformed the US Consumer Services industry which returned 36.3% over the past year.

Return vs Market: STRA underperformed the US Market which returned 19% over the past year.


Shareholder returns

STRAIndustryMarket
7 Day2.4%-0.7%1.8%
30 Day-3.6%2.1%6.0%
90 Day-9.6%2.7%6.8%
1 Year-34.9%-35.7%36.5%36.1%23.2%20.4%
3 Year1.2%-2.9%65.3%59.4%47.4%37.6%
5 Year67.0%58.7%246.4%221.2%91.9%70.8%

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?

38.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STRA ($92.66) is trading below our estimate of fair value ($150.21)

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 (18.8x) compared to the US Consumer Services industry average (27.3x).

PE vs Market: STRA is good value based on its PE Ratio (18.8x) compared to the US market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: STRA is good value based on its PEG Ratio (1x)


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).


Next Steps

Future Growth

How is Strategic Education forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STRA's forecast earnings growth (19.4% per year) is above the savings rate (2.2%).

Earnings vs Market: STRA's earnings (19.4% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: STRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: STRA's revenue (10.4% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: STRA's revenue (10.4% 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%).


Next Steps

Past Performance

How has Strategic Education performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STRA has high quality earnings.

Growing Profit Margin: STRA's current net profit margins (10.6%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: STRA's earnings have grown significantly by 20.1% per year over the past 5 years.

Accelerating Growth: STRA's earnings growth over the past year (44.9%) exceeds its 5-year average (20.1% per year).

Earnings vs Industry: STRA earnings growth over the past year (44.9%) exceeded the Consumer Services industry 11.9%.


Return on Equity

High ROE: STRA's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Strategic Education's financial position?


Financial Position Analysis

Short Term Liabilities: STRA's short term assets ($806.4M) exceed its short term liabilities ($195.3M).

Long Term Liabilities: STRA's short term assets ($806.4M) exceed its long term liabilities ($147.0M).


Debt to Equity History and Analysis

Debt Level: STRA is debt free.

Reducing Debt: STRA had no debt 5 years ago.

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


Next Steps

Dividend

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

2.59%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: STRA's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: STRA's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (4.15%).


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 reasonably low payout ratio (48.7%), STRA's dividend payments are 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

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

5.6yrs

Average management tenure


CEO

Karl McDonnell (54 yo)

7.5yrs

Tenure

US$7,417,025

Compensation

Mr. Karl McDonnell serves as the President and Chief Executive Officer at Strategic Education, Inc. (formerly known as Strayer Education, Inc.). since June 2018. Mr. McDonnell was Chief Executive Officer o...


CEO Compensation Analysis

Compensation vs Market: Karl's total compensation ($USD7.42M) is above average for companies of similar size in the US market ($USD4.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Silberman
Executive Chairman of the Board17.75yrsUS$7.07m0.47%
$ 10.6m
Karl McDonnell
President7.5yrsUS$7.42m0.48%
$ 10.7m
Daniel Jackson
Executive VP & CFO5.67yrsUS$2.25m0.16%
$ 3.6m
Andrew Watt
Chief Operating Officer1.75yrsUS$2.12m0.081%
$ 1.8m
Lizette Herraiz
Senior VP2.25yrsUS$1.14m0.072%
$ 1.6m
Thomas Aprahamian
Chief Accounting Officer5.67yrsUS$514.05k0.024%
$ 545.4k
Terese Wilke
Manager of Investor Relationsno datano datano data
Jen Towns
Chief Marketing Officer2.08yrsno datano data
Christa Hokenson
Senior VP & Chief Human Resources Officerno datano data0.038%
$ 856.0k
Sondra Stallard
President Emerita and Director of Accreditation & Regulatory Affairs - Strayer University9.08yrsUS$799.80kno data
Michael Plater
President Emeritus & Director of Community College Relations - Strayer University5.58yrsUS$1.54mno data
Andrea Backman
Chief Academic Officer & Provostno datano datano data

5.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: STRA's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Silberman
Executive Chairman of the Board17.75yrsUS$7.07m0.47%
$ 10.6m
Karl McDonnell
President7.5yrsUS$7.42m0.48%
$ 10.7m
Robert Grusky
Presiding Independent Director2.83yrsUS$160.00k0.029%
$ 655.2k
John Casteen
Independent Director9.58yrsUS$150.00k0.030%
$ 679.9k
G. Waite
Independent Director24.33yrsUS$160.00k0.039%
$ 875.7k
Charlotte Beason
Independent Director24.33yrsUS$150.00k0.064%
$ 1.4m
Rita Brogley
Independent Director2.25yrsUS$150.00k0.023%
$ 509.6k
J. Gilligan
Vice Chairman2.25yrsUS$1.64m0.021%
$ 476.4k
H. Dallas
Independent Director2.25yrsUS$155.00k0.036%
$ 811.0k
Nathaniel Fick
Independent Director4.08yrsUS$155.00k0.014%
$ 316.0k

6.5yrs

Average Tenure

62yo

Average Age

Experienced Board: STRA's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STRA insiders have only sold shares 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 12.6%.


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$2.241b
  • Shares outstanding: 24.18m
  • 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 Analysis2020/11/25 00:38
End of Day Share Price2020/11/24 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.