NYSE:LRN

Stock Analysis Report

Executive Summary

K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has K12's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.0%

NYSE:LRN

-1.0%

US Consumer Services

-1.9%

US Market


1 Year Return

63.1%

NYSE:LRN

10.1%

US Consumer Services

-3.3%

US Market

LRN outperformed the Consumer Services industry which returned 10.9% over the past year.

LRN outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

LRNIndustryMarket
7 Day-4.0%-1.0%-1.9%
30 Day-10.0%0.4%-6.2%
90 Day-12.3%7.5%0.3%
1 Year63.1%63.1%13.7%10.1%-1.1%-3.3%
3 Year137.0%137.0%111.8%99.8%37.9%28.9%
5 Year46.4%46.4%136.1%111.9%50.8%34.1%

Price Volatility Vs. Market

How volatile is K12's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is K12 undervalued based on future cash flows and its price relative to the stock market?

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

K12's share price is below the future cash flow value, and at a moderate discount (> 20%).

K12's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

K12 is overvalued based on earnings compared to the US Consumer Services industry average.

K12 is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

K12 is poor value based on expected growth next year.


Price Based on Value of Assets

K12 is good value based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is K12 expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

K12's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

K12's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).

K12's revenue growth is positive but not above the United States of America market average.

K12's earnings growth is positive but not above the United States of America market average.

K12's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

K12 is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has K12 performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

K12's year on year earnings growth rate has been positive over the past 5 years.

K12's 1-year earnings growth exceeds its 5-year average (34.7% vs 16.7%)

K12's earnings growth has exceeded the US Consumer Services industry average in the past year (34.7% vs 5.5%).


Return on Equity

K12 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

K12 used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

K12 has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is K12's financial position?


Financial Position Analysis

K12 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

K12's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

K12 has no debt.

K12 had no debt 5 years ago.

K12 has no debt, it does not need to be covered by operating cash flow.

K12 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

K12 has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is K12's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate K12's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate K12's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as K12 has not reported any payouts.

Unable to verify if K12's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as K12 has not reported any payouts.


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 K12's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Nate Davis (65yo)

1.4yrs

Tenure

US$6,435,889

Compensation

Mr. Nathaniel Alonzo Davis, also known as Nate, has been the Executive Chairman at K12, Inc. since January 2013 and serves as its Chief Executive Officer since March 2018. Mr. Davis has been the Managing D ...


CEO Compensation Analysis

Nate's remuneration is higher than average for companies of similar size in United States of America.

Nate's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.8yrs

Average Tenure

55yo

Average Age

The average tenure for the K12 management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

68yo

Average Age

The tenure for the K12 board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$124,28011 Feb 19
Kevin Chavous
EntityIndividual
Role
Unit President
President of Academics
Shares4,000
Max PriceUS$31.07
SellUS$2,906,00029 Jan 19
Nathaniel Davis
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Chairman
Shares100,000
Max PriceUS$29.06
SellUS$153,93029 Oct 18
Kevin Chavous
EntityIndividual
Role
Unit President
President of Academics
Shares7,000
Max PriceUS$21.99

Ownership Breakdown


Management Team

  • Nate Davis (65yo)

    CEO & Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$6.44m
  • Vincent Mathis (55yo)

    Executive VP & General Counsel

    • Tenure: 0.9yrs
  • Jeff Kwitowski

    Senior Vice President of Corporate Communications

    • Tenure: 0.0yrs
  • Peter Stewart (51yo)

    Senior Vice President of School Development

    • Tenure: 0.0yrs
  • James Rhyu (49yo)

    CFO and President of Product & Technology

    • Tenure: 6.2yrs
    • Compensation: US$1.88m
  • Val Maddy

    Senior Vice President of Human Resources

    • Tenure: 6.5yrs
  • Mike Kraft

    Senior Vice President of Corporate Communications

    • Tenure: 0.0yrs
  • Rob Banwarth

    Chief Information Officer & Senior VP

    • Tenure: 4.4yrs
  • Kevin Chavous (63yo)

    President of Academics

    • Tenure: 1.8yrs
    • Compensation: US$1.89m
  • Todd Goldthwaite

    Senior VP & Chief Marketing Officer

    • Tenure: 0.6yrs

Board Members

  • Nate Davis (65yo)

    CEO & Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$6.44m
  • Bill Bron (67yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$175.00k
  • Bob Knowling (64yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$127.98k
  • Steve Fink (68yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$200.00k
  • Craig Barrett (80yo)

    Lead Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$165.00k
  • Mary Futrell (79yo)

    Member of Educational Advisory Committee

    • Tenure: 0.0yrs
    • Compensation: US$30.00k
  • John Engler (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$185.00k
  • Aida Alvarez (69yo)

    Director

    • Tenure: 0.7yrs
    • Compensation: US$170.00k
  • David Driscoll

    Member of Education Advisory Committee

    • Tenure: 0.0yrs
  • Liza McFadden (56yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$202.61k

Company Information

K12 Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: K12 Inc.
  • Ticker: LRN
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.073b
  • Shares outstanding: 38.92m
  • Website: https://www.k12.com

Number of Employees


Location

  • K12 Inc.
  • 2300 Corporate Park Drive
  • Herndon
  • Virginia
  • 20171
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LRNNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2007
3KADB (Deutsche Boerse AG)YesCommon StockDEEURDec 2007

Biography

K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students pri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/26 00:19
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.