STRA  Strayer Education Inc.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Other Consumer Services

Market Cap.

938.16M

Vuru Grade

70.42/100

Current Price

$88.14
+0.19 (+0.22%)

Growth Price

$32.92
Overvalued by 62.65%

Stability Price

$53.54
Overvalued by 39.25%

Company Metrics

  • P/E 29.21
  • P/S 2.10
  • P/B 4.72
  • EPS 3.02
  • Cash ROIC 58.39%
  • Cash Ratio 2.16
  • Dividend 1.00 / 1.14 %
  • Avg. Vol. 70,602.00
  • Shares 10.64M
  • Market Cap. 938.16M

Company Description

Strayer Education, Inc., through its subsidiary, Strayer University, Inc., provides various academic programs through traditional classrooms and Internet. The company provides undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, public administration, and criminal justice through 78 campuses in Alabama, Delaware, Florida... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Strayer Education, Inc. (STRA) Ex-Dividend Date Scheduled for March 02, 2017
Nasdaq - Mar 1, 2017
Strayer Education, Inc. ( STRA ) will begin trading ex-dividend on March 02, 2017. A cash dividend payment of $0.25 per share is scheduled to be paid on March 20, 2017.
Strayer Education, Inc. Reports First Quarter Enrollment, Revenues and ...
Yahoo Finance - May 3, 2017
Total enrollments at Strayer University for the second quarter 2017 are anticipated to grow 6% to approximately 43,400 students from 41,029 students in the same period in 2016.
Strayer Education Inc Reveals 15% Retreat In Q1 Earnings - Nasdaq
Strayer Education (STRA) Earnings Meet Expectations in Q1 - Zacks.com
Strayer Education: New Asset To Generate Growth
Seeking Alpha - May 10, 2016
While this is certainly old news, we should make everyone following Strayer Education (NASDAQ:STRA) fully aware that its programs are in fact under ACBSP accreditation.
Strayer Education: Slowly Fading Away
Seeking Alpha - May 19, 2016
Strayer Education, Inc. (NASDAQ:STRA) consistently appears on different value screeners, including Joel Greenblatt's magic formula.
Price Alert: Strayer Education Inc (NASDAQ:STRA) Stock Nears Resistance ...
CML News - May 16, 2017
Price Alert: Strayer Education Inc (NASDAQ:STRA) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Strayer Education, Inc., Launches PathBoost to Help Companies Hire Better and ...
Business Wire (press release) - Aug 10, 2016
WASHINGTON--(BUSINESS WIRE)--Strayer Education, Inc., an education services company, today announced the launch of PathBoost.
Strayer Education, Inc. Schedules First Quarter 2017 Earnings Release and ...
Business Wire (press release) - Apr 4, 2017
HERNDON, Va.--(BUSINESS WIRE)--Strayer Education, Inc. (NASDAQ: STRA) today announced that it will host a conference call to discuss its first quarter earnings on Wednesday, May 3 at 10:00 a.m.
Can Strayer Education, Inc. (NASDAQ:STRA) Grab Upward Traction?
FLBC News - 4 hours ago
Strayer Education, Inc. (NASDAQ:STRA) are being monitored closely by investors today as the name is currently priced at $88.14, a 0.27% difference from where it most recently opened.
The Strayer Education (STRA) Given News Impact Score of 0.37 - BangaloreWeekly
Zacks Investment Research Lowers Strayer Education Inc (STRA) to Sell
The Cerbat Gem - May 20, 2017
Zacks Investment Research cut shares of Strayer Education Inc (NASDAQ:STRA) from a hold rating to a sell rating in a report released on Tuesday.
Strayer Education Inc (STRA) CEO Sells $3969912.87 in Stock - Sports Perspectives
The Strayer Education Inc (STRA) PT Raised to $95.00 at First Analysis - BangaloreWeekly
Strayer Education, Inc. Reports Fourth Quarter and Full Year Revenues and ...
Business Wire (press release) - Feb 16, 2017
Strayer Education, Inc. will host a conference call to discuss its fourth quarter 2016 earnings results at 10:00 a.m.
Strayer Education's (STRA) CEO Karl McDonnell on Q4 2016 Results - Earnings ... - Seeking Alpha
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for STRA to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate STRA's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$88.14 Current Price

$32.92 Growth Price (DCF)

Overvalued by 62.65%


Growth Rate Assumed by Market: 31.81%


Future Free Cash Flow Growth Rate: -5.7%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$53.54 Stability Price (EPV)

Overvalued by 39.25%


Discount Rate: 15.0%

$4.72 NCA Price

Overvalued by 94.65%

$212.55 Book Price

Undervalued by 141.16%


Varying Cash Return on Invested Capital over the past 5 years

STRA has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

STRA has created $58.39 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 57.33M 75.37M 70.65M 64.21M 31.35M
divided by
Invested Capital 137.25M 114.35M 89.20M 83.95M 109.61M
Cash ROIC 41.77% 65.91% 79.20% 76.48% 28.60%

Varying Return on Equity over the past 5 years

STRA has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

STRA has generated $59.91 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 65.93M 16.43M 46.36M 40.02M 34.80M
divided by
Stockholders' Equity 40.99M 38.90M 92.73M 142.86M 188.37M
Return on Equity 160.85% 42.22% 49.99% 28.02% 18.47%

Excellent Business Performance over the past 10 years

STRA has been able to maintain profitability in good times and bad. This could mean STRA has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

STRA has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 65.88M 67.92M 111.34M 116.81M 124.37M 57.33M 75.37M 70.65M 64.21M 31.35M

Very Strong Balance Sheet

STRA has more Cash than its Total Liabilities, resulting in $1.78 Net Cash per share. In other words, if you buy STRA today, the price you're paying for shares is actually $86.36 because $1.78 of Cash is included in the current share price. This much Cash is very healthy. It can help STRA sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 171.34M 107.33M 116.52M 76.49M 57.14M 47.52M 94.76M 162.28M 106.89M 129.25M
Current Assets 276.08M 249.50M 289.98M 286.32M 94.67M 89.66M 127.34M 196.65M 138.80M 160.54M
Total Assets 343.78M 324.56M 385.81M 412.77M 231.13M 227.79M 254.27M 307.82M 248.43M 298.70M
Current Liabilities 144.35M 136.82M 184.24M 224.12M 77.18M 43.02M 45.16M 56.34M 57.59M 59.84M
Total Liabilities 155.27M 148.48M 195.99M 236.76M 188.84M 186.80M 215.36M 215.08M 105.58M 110.32M
Stockholder' Equity 188.51M 176.08M 189.82M 176.00M 42.29M 40.99M 38.90M 92.73M 142.86M 188.37M
Current Ratio 1.91 1.82 1.57 1.28 1.23 2.08 2.82 3.49 2.41 2.68
TL-to-TA 0.45 0.46 0.51 0.57 0.82 0.82 0.85 0.70 0.42 0.37

Consistent Reinvestment of Profits over the past 10 years

STRA has consistently retained profits. This may put STRA in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, STRA can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 101.10M 158.83M 188.22M 174.63M 42.49M 41.31M 31.63M 77.99M 118.01M 152.81M
Retained Earnings Growth - 57.10% 18.50% -7.22% -75.67% -2.78% -23.44% 146.56% 51.32% 29.49%

Shrinking Competitive Advantage over the past 10 years

STRA has a shrinking competitive advantage. This could be due to weakening branding, the inability to keep costs low, or by new competitors entering the industry. Look at its future prospects to determine sustainability and whether the economic moat will continue to shrink or if it will rebound.

$14.13 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 64.94M 80.81M 105.08M 131.26M 106.04M 65.93M 16.43M 46.36M 40.02M 34.80M
divided by
Revenue 318.01M 396.28M 511.96M 636.73M 627.43M 561.98M 503.60M 446.04M 434.44M 441.09M
Net Profit Margin 20.42% 20.39% 20.52% 20.61% 16.90% 11.73% 3.26% 10.39% 9.21% 7.89%

Strong Pricing Power over the past 10 years

STRA has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$54.49 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 209.16M 265.44M 345.36M 431.52M 335.43M 261.88M 193.15M 209.74M 200.34M 200.06M
divided by
Revenue 318.01M 396.28M 511.96M 636.73M 627.43M 561.98M 503.60M 446.04M 434.44M 441.09M
Gross Margin 65.77% 66.98% 67.46% 67.77% 53.46% 46.60% 38.35% 47.02% 46.11% 45.36%

Medium Capital Intensity over the past 10 years

STRA has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

31.58% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 14.87M 20.66M 30.43M 46.02M 29.99M 24.73M 8.73M 6.90M 12.69M 13.16M
divided by
Net Income 64.94M 80.81M 105.08M 131.26M 106.04M 65.93M 16.43M 46.36M 40.02M 34.80M
Capital Expenditure Ratio 22.90% 25.56% 28.96% 35.06% 28.28% 37.51% 53.13% 14.89% 31.71% 37.82%

Inconsistent Dividend History over the past 10 years

STRA has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 19.03M 51.93M 31.63M 44.54M 49.11M 47.33M - - - -
divided by
Shares Outstanding 14.52M 14.24M 13.83M 13.54M 11.94M 11.44M 10.62M 10.65M 10.74M 10.85M
Dividend Paid Per Share 1.31 3.65 2.29 3.29 4.11 4.14 - - - -
Price at Year End 159.30 196.75 202.26 150.00 96.32 55.32 35.07 74.51 62.20 80.63
Dividend Yield 0.82% 1.85% 1.13% 2.19% 4.27% 7.48% - - - -

Strong History of Stock Buybacks over the past 10 years

STRA has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 14.52M 14.24M 13.83M 13.54M 11.94M 11.44M 10.62M 10.65M 10.74M 10.85M
Stock Bought Back - 1.93% 3.02% 2.14% 13.33% 4.40% 7.68% -0.24% -0.84% -0.97%
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