NYSE:LRN

Stock Analysis Report

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Executive Summary

Stride, Inc., a technology-based education company, provides proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. More Details


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: LRN's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.1%

LRN

-5.4%

US Consumer Services

-3.4%

US Market


1 Year Return

18.7%

LRN

27.5%

US Consumer Services

29.4%

US Market

Return vs Industry: LRN underperformed the US Consumer Services industry which returned 27.5% over the past year.

Return vs Market: LRN underperformed the US Market which returned 29.4% over the past year.


Shareholder returns

LRNIndustryMarket
7 Day-4.1%-5.4%-3.4%
30 Day-11.1%-0.7%0.6%
90 Day9.9%11.1%6.3%
1 Year18.7%18.7%27.9%27.5%32.2%29.4%
3 Year61.0%61.0%49.6%44.9%51.3%41.7%
5 Year126.5%126.5%271.7%246.3%119.6%95.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Stride undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LRN ($24.15) is trading below our estimate of fair value ($103.4)

Significantly Below Fair Value: LRN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LRN is good value based on its PE Ratio (18.9x) compared to the US Consumer Services industry average (27.8x).

PE vs Market: LRN is good value based on its PE Ratio (18.9x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: LRN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LRN is good value based on its PB Ratio (1.3x) compared to the US Consumer Services industry average (2.8x).


Next Steps

Future Growth

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

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRN's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: LRN's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: LRN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LRN's revenue (2.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: LRN's revenue (2.7% 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 (6.8%).


Next Steps

Past Performance

How has Stride performed over the past 5 years?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRN has high quality earnings.

Growing Profit Margin: LRN's current net profit margins (4%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: LRN's earnings have grown significantly by 43% per year over the past 5 years.

Accelerating Growth: LRN's earnings growth over the past year (56.2%) exceeds its 5-year average (43% per year).

Earnings vs Industry: LRN earnings growth over the past year (56.2%) exceeded the Consumer Services industry 2.8%.


Return on Equity

High ROE: LRN's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Stride's financial position?


Financial Position Analysis

Short Term Liabilities: LRN's short term assets ($768.5M) exceed its short term liabilities ($228.6M).

Long Term Liabilities: LRN's short term assets ($768.5M) exceed its long term liabilities ($490.9M).


Debt to Equity History and Analysis

Debt Level: LRN's debt to equity ratio (38.8%) is considered satisfactory.

Reducing Debt: LRN's debt to equity ratio has increased from 0% to 38.8% over the past 5 years.

Debt Coverage: LRN's debt is not well covered by operating cash flow (7.4%).

Interest Coverage: LRN's interest payments on its debt are well covered by EBIT (9.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Stride 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.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

James Rhyu (50 yo)

0.17

Tenure

US$3,399,241

Compensation

Mr. James J. Rhyu serves as Chief Executive Officer at Stride, Inc. (Formerly known as K12, Inc.) since January 2021 and served as President of Corporate Strategy, Marketing and Technology at Stride, Inc. ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD3.40M) is above average for companies of similar size in the US market ($USD2.20M).

Compensation vs Earnings: James's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nathaniel Davis
Executive Chairman8.75yrsUS$15.93m1.96%
$ 18.9m
James Rhyu
Chief Executive Officer0.17yrUS$3.40m0.68%
$ 6.6m
Timothy Medina
Chief Financial Officer0.92yrUS$2.02m0.10%
$ 980.9k
Vincent Mathis
Executive VP2.5yrsUS$1.54m0.096%
$ 924.1k
Kevin Chavous
President of Academic Policy & External Affairsno dataUS$2.31m0.11%
$ 1.0m
Shaun McAlmont
President of Career Learning Solutions2.5yrsUS$2.03m0.10%
$ 969.5k
Rob Banwarth
Chief Information Officer & Senior VP6yrsno datano data
Mike Lawson
Vice President of Investor Relationsno datano datano data
Jeff Kwitowski
Senior Vice President of Corporate Communicationsno datano datano data
Mike Kraft
Senior Vice President of Corporate Communications2.17yrsno datano data
Todd Goldthwaite
Senior VP & Chief Marketing Officer2.17yrsno datano data
Valerie Maddy
Senior Vice President of Human Resources8.08yrsno datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: LRN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nathaniel Davis
Executive Chairman8.75yrsUS$15.93m1.96%
$ 18.9m
Guillermo Bron
Independent Director13.67yrsUS$195.00k0.15%
$ 1.5m
Robert Knowling
Independent Director3.17yrsUS$205.00k0.028%
$ 266.9k
Steven Fink
Independent Director17.42yrsUS$230.00k0.39%
$ 3.8m
Craig Barrett
Lead Independent Director3.5yrsUS$195.00k0.16%
$ 1.5m
Mary Futrell
Member of Educational Advisory Committeeno dataUS$30.00kno data
John Engler
Independent Director8.42yrsUS$205.00k0.15%
$ 1.4m
Aida Alvarez
Independent Director2.25yrsUS$198.75k0.055%
$ 531.0k
David Driscoll
Member of Education Advisory Committeeno datano datano data
Eliza McFadden
Independent Director3.58yrsUS$200.00k0.030%
$ 289.3k
Elanna Yalow
Member of Educational Advisory Committeeno datano datano data
Millie Fornell
Member of Educational Advisory Committeeno datano datano data

6.0yrs

Average Tenure

69yo

Average Age

Experienced Board: LRN's board of directors are considered experienced (6 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Stride, Inc.
  • Ticker: LRN
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$965.189m
  • Shares outstanding: 39.97m
  • Website: https://www.stridelearning.com

Number of Employees


Location

  • Stride, 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

Stride, Inc., a technology-based education company, provides proprietary and third-party 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 Analysis2021/03/04 00:09
End of Day Share Price2021/03/03 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.