Strategic Education, Inc. (STRA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Stride, Inc.

Global Business Travel Group, Inc.

Life Time Group Holdings, Inc.

Graham Holdings Co.

Strategic Education, Inc.

Driven Brands Holdings, Inc.

Marriott Vacations Worldwide Corp.

Valvoline, Inc.

UniFirst Corp.

Planet Fitness, Inc.

TripAdvisor, Inc.

Why is Strategic Education, Inc. ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 7.67% of over the last 5 years

Flat results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at -1.83 %
DIVIDEND PAYOUT RATIO(Y) Lowest at 35.1%
CASH AND EQV(HY) Lowest at USD 304.24 MM

With ROE of 8.65%, it has a attractive valuation with a 1.12 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.96%, its profits have risen by 25.1% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 9.96% in the last 1 year, much lower than market (S&P 500) returns of 22.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Strategic Education, Inc. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Strategic Education, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Strategic Education, Inc.

9.96%

-0.66

34.94%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.30%

EBIT Growth (5y)

7.67%

EBIT to Interest (avg)

51.12

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.71

Tax Ratio

29.67%

Dividend Payout Ratio

44.36%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

7.69%

ROE (avg)

5.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.12

EV to EBIT

8.72

EV to EBITDA

7.00

EV to Capital Employed

1.14

EV to Sales

1.35

PEG Ratio

0.42

Dividend Yield

3.18%

ROCE (Latest)

13.02%

ROE (Latest)

8.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 215.89 MM

ROCE(HY)

Highest at 8.15%

NET SALES(Q)

Highest at USD 337.26 MM

EPS(Q)

Highest at USD 1.71

-7What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -1.83 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 35.1%

CASH AND EQV(HY)

Lowest at USD 304.24 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 12.59 times

Here's what is working for Strategic Education, Inc.

Operating Cash Flow

Highest at USD 215.89 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 337.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD 1.71

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Strategic Education, Inc.

Debt-Equity Ratio

Highest at -1.83 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at USD 304.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 12.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 35.1%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)