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.
Excellent balance sheet and fair value.
Share Price & News
How has K12's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LRN's share price has been volatile over the past 3 months.
7 Day Return
US Consumer Services
1 Year Return
US Consumer Services
Return vs Industry: LRN underperformed the US Consumer Services industry which returned 11.1% over the past year.
Return vs Market: LRN underperformed the US Market which returned 9.2% over the past year.
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
4 days ago | Simply Wall StIs K12 Inc. (NYSE:LRN) Trading At A 47% Discount?
3 weeks ago | Simply Wall StDoes K12 (NYSE:LRN) Have A Healthy Balance Sheet?
1 month ago | Simply Wall StExamining K12 Inc.’s (NYSE:LRN) Weak Return On Capital Employed
Is K12 undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LRN ($26.03) is trading below our estimate of fair value ($46.92)
Significantly Below Fair Value: LRN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LRN is poor value based on its PE Ratio (44.7x) compared to the Consumer Services industry average (22.4x).
PE vs Market: LRN is poor value based on its PE Ratio (44.7x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: LRN is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: LRN is good value based on its PB Ratio (1.5x) compared to the US Consumer Services industry average (2.2x).
How is K12 forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LRN's forecast earnings growth (34% per year) is above the savings rate (2.2%).
Earnings vs Market: LRN's earnings (34% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LRN's revenue (6.8% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: LRN's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LRN's Return on Equity is forecast to be low in 3 years time (5.5%).
How has K12 performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LRN has high quality earnings.
Growing Profit Margin: LRN's current net profit margins (2.2%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: LRN's earnings have grown significantly by 32.6% per year over the past 5 years.
Accelerating Growth: LRN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LRN had negative earnings growth (-46.9%) over the past year, making it difficult to compare to the Consumer Services industry average (15.4%).
Return on Equity
High ROE: LRN's Return on Equity (3.5%) is considered low.
How is K12's financial position?
Financial Position Analysis
Short Term Liabilities: LRN's short term assets ($486.7M) exceed its short term liabilities ($257.6M).
Long Term Liabilities: LRN's short term assets ($486.7M) exceed its long term liabilities ($113.8M).
Debt to Equity History and Analysis
Debt Level: LRN's debt to equity ratio (15%) is considered satisfactory.
Reducing Debt: LRN's debt to equity ratio has increased from 0.3% to 15% over the past 5 years.
Debt Coverage: LRN's debt is well covered by operating cash flow (71.3%).
Interest Coverage: LRN earns more interest than it pays, so coverage of interest payments is not a concern.
What is K12's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate LRN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LRN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LRN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LRN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nate Davis (65yo)
Mr. Nathaniel Alonzo Davis, also known as Nate, is Executive Chairman at K12, Inc. since January 2013 and is its Chief Executive Officer since March 2018. Mr. Davis is Managing Director and Board Manager a ...
CEO Compensation Analysis
Compensation vs Market: Nate's total compensation ($USD9.79M) is above average for companies of similar size in the US market ($USD3.13M).
Compensation vs Earnings: Nate's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Executive Chairman||2.25yrs||US$9.79m||1.58% $16.2m|
|President of Corporate Strategy||no data||US$4.68m||0.72% $7.4m|
|Executive VP||1.75yrs||US$3.99m||0.10% $1.1m|
|President of Career Readiness Education||1.75yrs||US$5.19m||0.14% $1.5m|
|President of Academics||2.58yrs||US$4.33m||0.17% $1.7m|
|Chief Financial Officer||0.17yr||no data||0.088% $903.4k|
|Chief Information Officer & Senior VP||5.25yrs||no data||no data|
|Senior Vice President of Corporate Communications||no data||no data||no data|
|Senior Vice President of Corporate Communications||1.42yrs||no data||no data|
|Senior VP & Chief Marketing Officer||1.42yrs||no data||no data|
Experienced Management: LRN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
|CEO & Executive Chairman||2.25yrs||US$9.79m||1.58% $16.2m|
|Independent Director||12.92yrs||US$200.00k||0.14% $1.4m|
|Independent Director||2.42yrs||US$195.00k||0.015% $157.3k|
|Independent Director||16.67yrs||US$225.00k||0.38% $3.9m|
|Lead Independent Director||2.75yrs||US$190.00k||0.14% $1.5m|
|Member of Educational Advisory Committee||no data||US$30.00k||no data|
|Independent Director||7.67yrs||US$205.00k||0.13% $1.3m|
|Independent Director||1.5yrs||US$195.00k||0.038% $392.6k|
|Member of Education Advisory Committee||no data||no data||no data|
|Independent Director||2.83yrs||US$195.00k||0.022% $222.0k|
Experienced Board: LRN's board of directors are considered experienced (5.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LRN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
K12 Inc.'s company bio, employee growth, exchange listings and data sources
- Name: K12 Inc.
- Ticker: LRN
- Exchange: NYSE
- Founded: 2000
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$1.026b
- Shares outstanding: 39.42m
- Website: https://www.k12.com
Number of Employees
- K12 Inc.
- 2300 Corporate Park Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LRN||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Dec 2007|
|3KA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 2007|
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. It also offers full-time programs virtual and blended public schools; full-time virtual programs, semester courses, and supplemental educational products; and teacher training, teaching, and other academic and technology support services to public schools, school districts, private schools, charter schools, early childhood learning centers, and corporate partners. In addition, the company provides FuelEd suite of offerings, such as K12 curriculum, FuelEd online courses, and FuelEd anywhere learning systems; Middlebury Interactive Languages; Stride; and the Big Universe literacy solutions. Further, it operates online private schools, including K12 International Academy, The Keystone School, and the George Washington University Online High School. Additionally, the company offers access to the online lessons and curriculum through proprietary learning management system; learning kits and guides; student computers; and administrative, accreditation, compliance and tracking, financial management, and human resources support services, as well as facility, operations, and technology support services. It also provides academic support services comprising teachers and related, advanced and special education, and student support services, as well as supports academically at-risk learners. The company sells individual K-8 online courses and supplemental educational products directly to families. K12 Inc. was founded in 2000 and is headquartered in Herndon, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/04 03:33|
|End of Day Share Price||2020/06/03 00:00|
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.