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Strategic Education, Inc. (STRA) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Strategic Education, Inc.

STRAMarket cap $1.75BPrice $79.8

Country🇺🇸United States

SectorConsumer

IndustryConsumer Services

Runs Strayer and Capella universities plus corporate education partnerships, turning working adults into degree-holders without them quitting their jobs. Its student loan default rates beat most traditional colleges, proving affordable online education can actually work.

In Bastion Portfolios?

52W Return+1%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+6%5

Revenue Forecast

Rev CAGR (1y)+3%3

Rev CAGR (3y)+3%3

Rev CAGR (5y)+3%2

Earnings Forecast

EPS Growth Y+1+29%8

EPS Growth Y+2+15%8

EPS Growth Y+3+16%8

Quality

Margins

EBIT Margin16%6

Net Income Margin10%6

Free Cash Flow Margin13%7

Debt

Net Debt/EBITDA-0.110

Efficiency

ROE8%4

ROA6%7

Earnings Stability77

GEAR+STRONG78

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)109

P/E Ratio (Forward 3y)89

P/BV1.19

EV Multiples

EV/EBITDA Fwd69

EV/EBIT Fwd89

Yield

Free Cash Flow Yield9.6%9

Dividend Yield3.0%7

Momentum

Short term

1 month return-2%7

3 month return-4%5

YTD return+2%5

Mid term

Price vs 52wHigh90%8

1 year return+3%5

Long term

3 year return+10%3

5 year return+28%5

Risk Shield

Price Risk

Beta0.67

Volatility36%5

Free Cash Flow

Free Cash Flow Margin13%7

Free Cash Flow Yield9.6%9

Quality

ROCE11%6

Earnings Stability77

Net Debt/EBITDA-0.110

02Growth

Is it actually growing, and how fast?

STRAStrategic Education

Revenue FY25$1.3B

GROWTH RATING↗

WEAK25 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+6%5

Revenue, next 1Y+3%3

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+3%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+29%8

EPS growth, FY27E+15%8

EPS growth, FY28E+16%8

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 16%/yr vs revenue 3%/yr), so margins should widen.

WATCH

Revenue grew 6%/yr over the last 3 years and is set to keep growing around 3%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 75% of companies worldwide.

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 3%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE49 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-2%7

3-month return-4%5

YTD return+2%5

MID & LONG-TERM▾SCORE

% of 52-week high90%8

1-year return+3%5

3-year return+10%3

5-year return+28%5

MOMENTUM ASSESSMENT

STRENGTHS

It's up 3% over the past year, but 10% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-2%).

WATCH

Average long-term results. Multi-year returns are middling (+10% over three years and +28% over five), roughly average for the market.

Returns sit at the market level over three months (-4%) and so far this year (+2%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Strategic Education, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

STRAStrategic Education

Revenue FY25$1.3B

GROWTH RATING↗

WEAK25 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+6%5

Revenue, next 1Y+3%3

Revenue, next 3Y, CAGR+3%3

Revenue, next 5Y, CAGR+3%2

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+29%8

EPS growth, FY27E+15%8

EPS growth, FY28E+16%8

GROWTH ASSESSMENT

STRENGTHS

Earnings are set to grow faster than sales (EPS about 16%/yr vs revenue 3%/yr), so margins should widen.

WATCH

Revenue grew 6%/yr over the last 3 years and is set to keep growing around 3%/yr.

WEAKNESSES

Growth is the weak spot here, trailing 75% of companies worldwide.

Revenue is set to grow 3%/yr over the next 3 years, behind most of the market.3/10

Over five years revenue is set to grow 3%/yr, behind 80% of companies worldwide.2/10

BOTTOM LINE

Stalled Business

Growth is a weak point here. The one thing to watch: forward revenue growth trails the market.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE49 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-2%7

3-month return-4%5

YTD return+2%5

MID & LONG-TERM▾SCORE

% of 52-week high90%8

1-year return+3%5

3-year return+10%3

5-year return+28%5

MOMENTUM ASSESSMENT

STRENGTHS

It's up 3% over the past year, but 10% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (-2%).

WATCH

Average long-term results. Multi-year returns are middling (+10% over three years and +28% over five), roughly average for the market.

Returns sit at the market level over three months (-4%) and so far this year (+2%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on Strategic Education, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community