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

Life Time Group Holdings, Inc.

Stride, Inc.

Graham Holdings Co.

Strategic Education, Inc.

UniFirst Corp.

Driven Brands Holdings, Inc.

Global Business Travel Group, Inc.

TripAdvisor, Inc.

Planet Fitness, Inc.

Marriott Vacations Worldwide Corp.

Valvoline, Inc.

Why is Strategic Education, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 1.96% of over the last 5 years

Positive results in Sep 25

OPERATING PROFIT(Q) Highest at USD 63.25 MM
OPERATING PROFIT MARGIN(Q) Highest at 19.77 %
PRE-TAX PROFIT(Q) Highest at USD 51.02 MM

With ROE of 7.89%, it has a fair valuation with a 1.09 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 -1.52%, its profits have risen by 4% ; the PEG ratio of the company is 3.2

High Institutional Holdings at 100%

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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.52% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Strategic Education, Inc.

0.58%

-0.86

30.29%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.18%

EBIT Growth (5y)

1.96%

EBIT to Interest (avg)

51.12

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.69

Tax Ratio

29.67%

Dividend Payout Ratio

51.41%

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

1.09

EV to EBIT

9.01

EV to EBITDA

7.17

EV to Capital Employed

1.10

EV to Sales

1.30

PEG Ratio

3.23

Dividend Yield

3.27%

ROCE (Latest)

12.19%

ROE (Latest)

7.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

8What is working for the Company

OPERATING PROFIT(Q)

Highest at USD 63.25 MM

OPERATING PROFIT MARGIN(Q)

Highest at 19.77 %

PRE-TAX PROFIT(Q)

Highest at USD 51.02 MM

RAW MATERIAL COST(Y)

Fallen by -5.04% (YoY

NET PROFIT(Q)

Highest at USD 36.95 MM

-2What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 357.03 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.26 times

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

Operating Profit

Highest at USD 63.25 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 19.77 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 51.02 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 36.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -5.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Cash and Eqv

Lowest at USD 357.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 11.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio