Stride, Inc. Fundamental Analysis (NYSE: LRN)
Stride, Inc. Fundamental Analysis (NYSE: LRN)
Stride, Inc. (NYSE: LRN) shows strong financial fundamentals with a PE ratio of 10.50, profit margin of 13.43%, and ROE of 21.31%. The company generates $2.5B in annual revenue with strong year-over-year growth of 17.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LRN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLRN demonstrates superior asset utilization.
Valuation Score
ExcellentLRN trades at attractive valuation levels.
Growth Score
ExcellentLRN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentLRN maintains a strong and stable balance sheet.
Profitability Score
ModerateLRN maintains healthy but balanced margins.
Key Financial Metrics
Is LRN Expensive or Cheap?
P/E Ratio
LRN trades at 10.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LRN's PEG of 0.57 indicates potential undervaluation.
Price to Book
The market values Stride, Inc. at 2.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.46 times EBITDA. This is generally considered low.
How Well Does LRN Make Money?
Net Profit Margin
For every $100 in sales, Stride, Inc. keeps $13.43 as profit after all expenses.
Operating Margin
Core operations generate 17.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.31 in profit for every $100 of shareholder equity.
ROA
Stride, Inc. generates $13.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stride, Inc. produces operating cash flow of $431.86M, showing steady but balanced cash generation.
Free Cash Flow
Stride, Inc. generates strong free cash flow of $353.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.31 in free cash annually.
FCF Yield
LRN converts 10.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How LRN Stacks Against Its Sector Peers
| Metric | LRN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.50 | 20.66 | Better (Cheaper) |
| ROE | 21.31% | 698.00% | Weak |
| Net Margin | 13.43% | -2238.00% (disorted) | Strong |
| Debt/Equity | 0.33 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 5.94 | 2.30 | Strong Liquidity |
| ROA | 13.89% | 320.00% | Weak |
LRN outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stride, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
111.98%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
977.74%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
393.68%
Industry Style: Defensive, Dividend, Low Volatility
High Growth