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

Excellent 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

1.8%

NasdaqGS:STRA

2.8%

US Consumer Services

2.1%

US Market


1 Year Return

30.4%

NasdaqGS:STRA

13.3%

US Consumer Services

-0.04%

US Market

STRA outperformed the Consumer Services industry which returned 12.3% over the past year.

STRA outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

STRAIndustryMarket
7 Day1.8%2.8%2.1%
30 Day-5.7%0.3%-3.2%
90 Day-2.3%10.5%2.8%
1 Year32.2%30.4%17.4%13.3%2.2%-0.04%
3 Year260.0%249.3%115.5%103.3%41.5%32.3%
5 Year204.1%195.0%142.2%117.5%55.0%37.8%

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?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Strategic Education is poor value based on expected growth next year.


Price Based on Value of Assets

Strategic Education is overvalued based on assets compared to the US Consumer Services industry average.


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

Strategic Education's revenue is expected to grow by 8.3% yearly, however this is not considered high growth (20% yearly).

Strategic Education's earnings are expected to grow significantly at over 20% yearly.

Strategic Education's revenue growth is expected to exceed the United States of America market average.

Strategic Education's earnings growth is expected to exceed the United States of America market average.

Strategic Education's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Strategic Education will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

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.


Return on Equity

Strategic Education has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Strategic Education used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

Strategic Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Strategic Education's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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.


Balance Sheet

Low level of unsold assets.

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?

1.16%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Strategic Education before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Strategic Education's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Strategic Education's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

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

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.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Karl McDonnell (53yo)

6.3yrs

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

Karl's remuneration is about average for companies of similar size in United States of America.

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

4.4yrs

Average Tenure

50yo

Average Age

The tenure for the Strategic Education management team is about average.


Board Age and Tenure

8.0yrs

Average Tenure

62.5yo

Average Age

The tenure for the Strategic Education board of directors is about average.


Insider Trading

Strategic Education individual insiders have only sold shares 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: 16.5yrs
    • Compensation: US$4.60m
  • Thomas Aprahamian (50yo)

    Chief Accounting Officer

    • Tenure: 4.4yrs
    • Compensation: US$514.05k
  • Terese Wilke

    Manager of Investor Relations

    • Tenure: 0.0yrs
  • Karl McDonnell (53yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$4.60m
  • Sondra Stallard (69yo)

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

    • Tenure: 7.8yrs
    • Compensation: US$799.80k
  • Dan Jackson (44yo)

    Executive VP & CFO

    • Tenure: 4.4yrs
    • Compensation: US$1.81m
  • Michael Plater (62yo)

    President Emeritus & Director of Community College Relations - Strayer University

    • Tenure: 4.3yrs
    • Compensation: US$1.54m
  • Andy Watt (41yo)

    Senior VP & COO

    • Tenure: 0.0yrs
  • Lizette Herraiz (44yo)

    Senior VP

    • Tenure: 1.0yrs
    • Compensation: US$1.87m
  • Christa Hokenson (48yo)

    Chief Human Resources

    • Tenure: 0.0yrs

Board Members

  • Bob Grusky (61yo)

    Presiding Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$152.50k
  • Todd Milano (66yo)

    Independent Director

    • Tenure: 23.1yrs
    • Compensation: US$135.00k
  • Rob Silberman (61yo)

    Executive Chairman of the Board

    • Tenure: 16.5yrs
    • Compensation: US$4.60m
  • John Casteen (76yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$157.50k
  • G. Waite (67yo)

    Independent Director

    • Tenure: 23.1yrs
    • Compensation: US$160.00k
  • Charlotte Beason (71yo)

    Independent Director

    • Tenure: 23.1yrs
    • Compensation: US$150.00k
  • J. Gilligan (64yo)

    Vice Chairman

    • Tenure: 1.0yrs
    • Compensation: US$1.24m
  • H. Dallas (60yo)

    Director

    • Tenure: 1.0yrs
    • Compensation: US$57.50k
  • Karl McDonnell (53yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$4.60m
  • Nate Fick (41yo)

    Independent Director

    • Tenure: 2.8yrs
    • 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$3.779b
  • 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 Analysis2019/08/22 23:43
End of Day Share Price2019/08/22 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.