(STRA) Strategic Education - Overview
Sector: Consumer Defensive | Industry: Education & Training Services | Exchange: NASDAQ (USA) | Market Cap: 1.784m USD | Total Return: -14.3% in 12m
Avg Turnover: 20.8M
EPS Trend: 87.7%
Qual. Beats: 0
Rev. Trend: 96.3%
Qual. Beats: 0
Warnings
Choppy Below Avwap Earnings
Tailwinds
No distinct edge detected
Strategic Education, Inc. (STRA) is a diversified education services provider operating through three primary segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. The company manages a portfolio of accredited institutions, including Strayer University and Capella University in the United States, alongside Torrens University and specialized vocational schools in the Australia/New Zealand region.
The business model relies on a mix of traditional campus-based learning and scalable online delivery, targeting working adults seeking undergraduate and graduate degrees. In addition to degree programs, the company has expanded into the alternative credential market through coding bootcamps like Devmountain and the Sophia Learning platform, which provides low-cost general education courses. This diversification helps mitigate the cyclical nature of domestic enrollment by capturing international demand and corporate-sponsored education through its Workforce Edge platform.
The Education Services sector is currently characterized by a shift toward digital transformation and employer-aligned skill development to address labor market gaps. Investors can further evaluate the companys valuation metrics and growth trajectory on ValueRay. Founded in 1892 and headquartered in Herndon, Virginia, Strategic Education continues to integrate technology-driven solutions to streamline education benefit programs for enterprise clients.
- Enrollment growth in U.S. Higher Education segment drives core revenue performance
- International student visa policy changes impact Torrens University enrollment and margins
- Employer partnerships through Workforce Edge diversify revenue and reduce acquisition costs
- Federal regulatory scrutiny of for-profit education affects valuation and compliance costs
- Sophia Learning expansion scales low-cost subscription revenue within Education Technology segment
| Net Income: 129.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.70 > 1.0 |
| NWC/Revenue: 3.22% < 20% (prev 5.58%; Δ -2.36% < -1%) |
| CFO/TA 0.10 > 3% & CFO 217.9m > Net Income 129.7m |
| Net Debt (-48.4m) to EBITDA (229.8m): -0.21 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (22.2m) vs 12m ago -7.87% < -2% |
| Gross Margin: 49.35% > 18% (prev 0.47%; Δ 4.89k% > 0.5%) |
| Asset Turnover: 61.19% > 50% (prev 59.46%; Δ 1.74% > 0%) |
| Interest Coverage Ratio: 45.48 > 6 (EBITDA TTM 229.8m / Interest Expense TTM 4.00m) |
| A: 0.02 (Total Current Assets 303.8m - Total Current Liabilities 262.9m) / Total Assets 2.08b |
| B: 0.13 (Retained Earnings 265.8m / Total Assets 2.08b) |
| C: 0.09 (EBIT TTM 181.7m / Avg Total Assets 2.08b) |
| D: 0.53 (Book Value of Equity 235.1m / Total Liabilities 443.9m) |
| Altman-Z'' = 1.69 = BB |
| DSRI: 0.93 (Receivables 86.2m/90.3m, Revenue 1.27b/1.23b) |
| GMI: 0.96 (GM 49.35% / 47.21%) |
| AQI: 1.03 (AQ_t 0.76 / AQ_t-1 0.74) |
| SGI: 1.03 (Revenue 1.27b / 1.23b) |
| TATA: -0.04 (NI 129.7m - CFO 217.9m) / TA 2.08b) |
| Beneish M = -3.13 (Cap -4..+1) = AA |
As of June 01, 2026, the stock is trading at USD 76.75 with a total of 228,978 shares traded.
Over the past week, the price has changed by -1.87%,
over one month by -1.35%,
over three months by -7.74% and
over the past year by -14.28%.
Strategic Education has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy STRA.
- StrongBuy: 1
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 87 | 13.4% |
P/E Trailing = 13.8938
P/E Forward = 10.5485
P/S = 1.4044
P/B = 1.0861
P/EG = 0.7034
Revenue TTM = 1.27b USD
EBIT TTM = 181.7m USD
EBITDA TTM = 229.8m USD
Long Term Debt = 94.9m USD (estimated: total debt 109.2m - short term 14.3m)
Short Term Debt = 14.3m USD (from shortTermDebt, last quarter)
Debt = 109.2m USD (from shortLongTermDebtTotal, last quarter) (leases 109.2m already included)
Net Debt = -48.4m USD (calculated: Debt 109.2m - CCE 157.6m)
Enterprise Value = 1.74b USD (1.78b + Debt 109.2m - CCE 157.6m)
Interest Coverage Ratio = 45.48 (Ebit TTM 181.7m / Interest Expense TTM 4.00m)
EV/FCF = 9.98x (Enterprise Value 1.74b / FCF TTM 173.9m)
FCF Yield = 10.02% (FCF TTM 173.9m / Enterprise Value 1.74b)
FCF Margin = 13.69% (FCF TTM 173.9m / Revenue TTM 1.27b)
Net Margin = 10.21% (Net Income TTM 129.7m / Revenue TTM 1.27b)
Gross Margin = 49.35% ((Revenue TTM 1.27b - Cost of Revenue TTM 643.6m) / Revenue TTM)
Gross Margin QoQ = 49.41% (prev 50.51%)
Tobins Q-Ratio = 0.84 (Enterprise Value 1.74b / Total Assets 2.08b)
Interest Expense / Debt = 3.66% (Interest Expense 4.00m / Debt 109.2m)
Taxrate = 22.42% (9.48m / 42.3m)
NOPAT = 140.9m (EBIT 181.7m * (1 - 22.42%))
Current Ratio = 1.16 (Total Current Assets 303.8m / Total Current Liabilities 262.9m)
Debt / Equity = 0.07 (Debt 109.2m / totalStockholderEquity, last quarter 1.63b)
Debt / EBITDA = -0.21 (Net Debt -48.4m / EBITDA 229.8m)
Debt / FCF = -0.28 (Net Debt -48.4m / FCF TTM 173.9m)
Total Stockholder Equity = 1.65b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.25% (Net Income 129.7m / Total Assets 2.08b)
RoE = 7.85% (Net Income TTM 129.7m / Total Stockholder Equity 1.65b)
RoCE = 10.41% (EBIT 181.7m / Capital Employed (Equity 1.65b + L.T.Debt 94.9m))
RoIC = 7.70% (NOPAT 140.9m / Invested Capital 1.83b)
WACC = 7.61% (E(1.78b)/V(1.89b) * Re(7.90%) + D(109.2m)/V(1.89b) * Rd(3.66%) * (1-Tc(0.22)))
Discount Rate = 7.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -55.56 | Cagr: -3.40%
[DCF] Terminal Value 77.97% ; FCFF base≈151.4m ; Y1≈173.6m ; Y5≈255.4m
[DCF] Fair Price = 172.1 (EV 3.84b - Net Debt -48.4m = Equity 3.89b / Shares 22.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 87.66 | EPS CAGR: 36.88% | SUE: -0.38 | # QB: 0
Revenue Correlation: 96.35 | Revenue CAGR: 6.12% | SUE: -0.63 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.80 | Chg30d=+3.05% | Revisions=+33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=1.91 | Chg30d=+4.19% | Revisions=+20% | Analysts=3
EPS current Year (2026-12-31): EPS=7.19 | Chg30d=+2.62% | Revisions=+20% | GrowthEPS=+16.3% | GrowthRev=+1.7%
EPS next Year (2027-12-31): EPS=8.09 | Chg30d=+0.58% | Revisions=+20% | GrowthEPS=+12.6% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +33%