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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Life Time Group Holdings, Inc.

Stride, Inc.

Graham Holdings Co.

TripAdvisor, Inc.

UniFirst Corp.

Global Business Travel Group, Inc.

Strategic Education, Inc.

Driven Brands Holdings, 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 0.43% of over the last 5 years

Flat results in Jun 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 43.64%
CASH AND EQV(HY) Lowest at USD 370.34 MM

With ROE of 7.24%, it has a fair valuation with a 1.31 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 -22.37%, its profits have risen by 10.6% ; the PEG ratio of the company is 1.8

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 1.2% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -22.37% 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.

-19.42%

-0.95

31.65%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.89%

EBIT Growth (5y)

0.43%

EBIT to Interest (avg)

51.12

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

0.68

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

1.31

EV to EBIT

12.17

EV to EBITDA

9.56

EV to Capital Employed

1.35

EV to Sales

1.61

PEG Ratio

1.83

Dividend Yield

204.45%

ROCE (Latest)

11.11%

ROE (Latest)

7.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.24% (YoY

NET SALES(Q)

Highest at USD 321.47 MM

OPERATING PROFIT(Q)

Highest at USD 60.55 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.83 %

PRE-TAX PROFIT(Q)

Highest at USD 48.23 MM

NET PROFIT(Q)

Highest at USD 34.31 MM

EPS(Q)

Highest at USD 1.37

-2What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 43.64%

CASH AND EQV(HY)

Lowest at USD 370.34 MM

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

Net Sales

Highest at USD 321.47 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 60.55 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 18.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 48.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 34.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -1.24% (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

Depreciation

Highest at USD 12 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

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

Cash and Eqv

Lowest at USD 370.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 43.64%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)