LRN

StrideNYSE:LRN Stock Report

Market Cap

US$1.4b

7D

3.1%

1Y

23.4%

Updated

16 Sep, 2021

Data

Company Financials +
LRN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends0/6

LRN Overview

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.

Stride Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Stride
Historical stock prices
Current Share PriceUS$34.93
52 Week HighUS$20.39
52 Week LowUS$35.86
Beta0.62
1 Month Change2.86%
3 Month Change19.75%
1 Year Change23.43%
3 Year Change98.02%
5 Year Change146.16%
Change since IPO42.28%

Recent News & Updates

Jun 20
These 4 Measures Indicate That Stride (NYSE:LRN) Is Using Debt Safely

These 4 Measures Indicate That Stride (NYSE:LRN) Is Using Debt Safely

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jun 02
Should You Be Adding Stride (NYSE:LRN) To Your Watchlist Today?

Should You Be Adding Stride (NYSE:LRN) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

May 18
Stride (NYSE:LRN) Might Have The Makings Of A Multi-Bagger

Stride (NYSE:LRN) Might Have The Makings Of A Multi-Bagger

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

LRNUS Consumer ServicesUS Market
7D3.1%-1.3%-0.6%
1Y23.4%-54.4%33.6%

Return vs Industry: LRN exceeded the US Consumer Services industry which returned -54.9% over the past year.

Return vs Market: LRN underperformed the US Market which returned 33.7% over the past year.

Price Volatility

Is LRN's price volatile compared to industry and market?
LRN volatility
LRN Beta0.62
Industry Beta0.90
Market Beta1

Stable Share Price: LRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

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

About the Company

FoundedEmployeesCEOWebsite
20007,100James Rhyuhttps://www.stridelearning.com

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. Its technology-based products and services enable clients to attract, enroll, educate, track progress, and support students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students.

Stride Fundamentals Summary

How do Stride's earnings and revenue compare to its market cap?
LRN fundamental statistics
Market CapUS$1.40b
Earnings (TTM)US$71.45m
Revenue (TTM)US$1.54b

19.6x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LRN income statement (TTM)
RevenueUS$1.54b
Cost of RevenueUS$1.01b
Gross ProfitUS$530.20m
ExpensesUS$458.75m
EarningsUS$71.45m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.78
Gross Margin34.50%
Net Profit Margin4.65%
Debt/Equity Ratio37.2%

How did LRN perform over the long term?

See historical performance and comparison

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 ($34.93) is trading below our estimate of fair value ($78.9)

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 (19.6x) compared to the US Consumer Services industry average (16.7x).

PE vs Market: LRN is poor value based on its PE Ratio (19.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: LRN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: LRN is good value based on its PB Ratio (1.7x) compared to the US Consumer Services industry average (1.9x).


Future Growth

How is Stride forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRN's forecast earnings growth (12.9% per year) is above the savings rate (2%).

Earnings vs Market: LRN's earnings (12.9% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: LRN's revenue (3% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: LRN's revenue (3% 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 (10.7%).


Past Performance

How has Stride performed over the past 5 years?

40.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRN has high quality earnings.

Growing Profit Margin: LRN's current net profit margins (4.6%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: LRN's earnings have grown significantly by 40.7% per year over the past 5 years.

Accelerating Growth: LRN's earnings growth over the past year (191.6%) exceeds its 5-year average (40.7% per year).

Earnings vs Industry: LRN earnings growth over the past year (191.6%) exceeded the Consumer Services industry 35.4%.


Return on Equity

High ROE: LRN's Return on Equity (8.9%) is considered low.


Financial Health

How is Stride's financial position?


Financial Position Analysis

Short Term Liabilities: LRN's short term assets ($857.5M) exceed its short term liabilities ($306.2M).

Long Term Liabilities: LRN's short term assets ($857.5M) exceed its long term liabilities ($466.4M).


Debt to Equity History and Analysis

Debt Level: LRN's debt to equity ratio (37.2%) is considered satisfactory.

Reducing Debt: LRN's debt to equity ratio has increased from 0% to 37.2% over the past 5 years.

Debt Coverage: LRN's debt is well covered by operating cash flow (44.8%).

Interest Coverage: LRN's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


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?

1.4yrs

Average management tenure


CEO

James Rhyu (51 yo)

0.67

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 serves as it's Director since 2021 and served as President of Corporate Strategy, Ma...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD3.40M) is about average for companies of similar size in the US market ($USD3.66M).

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


Leadership Team

Experienced Management: LRN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: LRN's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$1.404b
  • Shares outstanding: 40.18m
  • Website: https://www.stridelearning.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 22:52
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.