A Business at a Glance
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Strategic Education, Inc.
STRA
$1.8B
Mkt Cap
$75.64
+0.85%
Strategic Education, Inc. (STRA) has a current P/E ratio of 14.0, compared to its historical median P/E of 22.7. The stock is currently considered Cheap based on its historical valuation range.
Strategic Education, Inc. (STRA) has a 5-year average return on invested capital (ROIC) of 5.1%. This is below average and may indicate limited pricing power.
Strategic Education, Inc. (STRA) has a market capitalization of $1.7B. It is classified as a small-cap stock.
Yes, Strategic Education, Inc. (STRA) pays a dividend with a trailing twelve-month yield of 3.29%. The company also returns capital through share buybacks, with a buyback yield of 8.59%.
Based on historical P/E analysis, Strategic Education, Inc. (STRA) appears cheap. The current P/E of 14.0 is 38% below its historical median of 22.7. The estimated fair value CAGR (P/E method) is 11.9%.
Strategic Education, Inc. (STRA) operates in the Services-Educational Services industry, within the Consumer Cyclical sector.
Table of Contents Strategic Education, Inc. (“SEI,” “we,” “us,” “our,” or “the Company”) is an education services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets. We operate primarily through our wholly-owned subsidiaries, Capella University and Strayer University, both accredited post-secondary institutions of higher education located in the United States, and Torrens University, an accredited post-secondary institution of higher education located in Australia.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.3B | 1.2B | 1.1B | 1.1B | 1.1B |
| Net Income | 130M | 127M | 113M | 70M | 47M | 55M |
| EPS | $5.58 | $5.41 | $4.67 | $2.91 | $1.94 | $2.28 |
| Free Cash Flow | 174M | 154M | 129M | 80M | 83M | 131M |
| ROIC | 8.7% | 8.1% | 7.0% | 4.2% | 2.9% | 3.1% |
| Gross Margin | - | 51.1% | 50.2% | 46.6% | 47.2% | 43.7% |
| Debt/Equity | 0.00 | 0.07 | 0.08 | 0.13 | 0.16 | 0.19 |
| Dividends/Share | $2.49 | $2.40 | $2.40 | $2.40 | $2.40 | $2.40 |
| Operating Income | 176M | 174M | 156M | 95M | 71M | 74M |
| Operating Margin | 13.8% | 13.7% | 12.8% | 8.4% | 6.6% | 6.5% |
| ROE | 7.9% | 7.7% | 6.8% | 4.2% | 2.8% | 3.2% |
| Shares Outstanding | 23M | 23M | 24M | 24M | 24M | 24M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 446M | 434M | 441M | 455M | 634M | 997M | 1.0B | 1.1B | 1.1B | 1.1B | 1.2B | 1.3B | 1.3B |
| Gross Margin | 47.0% | 46.1% | 45.4% | 46.1% | 32.0% | 43.4% | 44.4% | 43.7% | 47.2% | 46.6% | 50.2% | 51.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 45M | 44M | 48M | 129M | 194M | 272M | 295M | 361M | 380M | 384M | 412M | 425M | 429M |
| EBIT | 82M | 70M | 57M | 52M | -23M | 111M | 109M | 74M | 71M | 95M | 156M | 174M | 176M |
| Op. Margin | 18.3% | 16.0% | 13.0% | 11.5% | -3.6% | 11.1% | 10.6% | 6.5% | 6.6% | 8.4% | 12.8% | 13.7% | 13.8% |
| Net Income | 46M | 40M | 35M | 21M | -16M | 81M | 86M | 55M | 47M | 70M | 113M | 127M | 130M |
| Net Margin | 10.4% | 9.2% | 7.9% | 4.5% | -2.5% | 8.1% | 8.4% | 4.9% | 4.4% | 6.2% | 9.2% | 10.0% | 10.2% |
| Non-Recurring | 0 | 0 | 0 | 3.4M | 14M | 0 | 12M | 28M | 5.0M | 18M | 1.6M | 22M | 22M |
| Returns on Capital | |||||||||||||
| ROIC | 85.9% | 63.4% | 36.1% | 30.4% | -1.8% | 6.7% | 6.0% | 3.1% | 2.9% | 4.2% | 7.0% | 8.1% | 8.7% |
| ROE | 70.4% | 34.0% | 21.0% | 10.4% | -1.9% | 5.6% | 5.4% | 3.2% | 2.8% | 4.2% | 6.8% | 7.7% | 7.9% |
| ROA | 16.5% | 14.4% | 12.7% | 6.6% | -1.6% | 4.7% | 4.2% | 2.4% | 2.1% | 3.3% | 5.4% | 6.2% | 6.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 78M | 78M | 45M | 56M | 47M | 202M | 143M | 181M | 126M | 117M | 169M | 198M | 218M |
| Free Cash Flow | 71M | 65M | 31M | 38M | 19M | 163M | 96M | 131M | 83M | 80M | 129M | 154M | 174M |
| Owner Earnings | 47M | 49M | 16M | 26M | -65K | 140M | 76M | 103M | 52M | 49M | 99M | 127M | 147M |
| CapEx | 6.9M | 13M | 13M | 18M | 28M | 39M | 47M | 49M | 43M | 37M | 41M | 44M | 44M |
| Maint. CapEx | 21M | 18M | 18M | 19M | 31M | 50M | 52M | 59M | 52M | 48M | 44M | 48M | 48M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 21M | 18M | 18M | 19M | 31M | 50M | 52M | 59M | 52M | 48M | 44M | 48M | 48M |
| CapEx/OCF | 8.9% | 16.4% | 29.6% | 32.1% | 58.8% | 19.1% | 32.8% | 27.4% | 34.2% | 31.5% | 24.0% | 22.3% | 20.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 11M | 28M | 47M | 56M | 59M | 59M | 59M | 59M | 58M | 56M |
| Dividend Yield | N/A | N/A | N/A | 0.7% | 1.9% | 1.7% | 2.2% | 3.6% | 4.1% | 3.2% | 2.5% | 3.0% | 3.3% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 247K | 5.9M | 40M | 10.0M | 12M | 139M | 147M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% | 0.5% | 2.3% | 0.5% | 0.5% | 7.3% | 8.6% |
| Stock-Based Comp | 9.5M | 10M | 11M | 12M | 16M | 12M | 15M | 18M | 22M | 20M | 26M | 23M | 23M |
| Debt Repayment | 3.1M | 119M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -44M | -59M | -79M | -113M | -335M | -385M | 57M | 33M | 36M | 5.1M | -59M | -39M | -158M |
| Cash & Equiv. | 162M | 107M | 129M | 156M | 312M | 420M | 188M | 269M | 214M | 168M | 137M | 141M | 158M |
| Long-Term Debt | 113M | 48M | 50M | 43M | 51M | 0 | 142M | 142M | 101M | 61M | 0 | N/A | N/A |
| Debt/Equity | 1.28 | 0.34 | 0.27 | 0.21 | 0.04 | 0.07 | 0.16 | 0.19 | 0.16 | 0.13 | 0.08 | 0.07 | 0.00 |
| Interest Coverage | 15.6 | 18.1 | 89.5 | 81.3 | -1895.0 | 762.3 | 1709.1 | 2239.8 | 1286.5 | 2028.1 | 1454.5 | N/A | N/A |
| Equity | 93M | 143M | 188M | 209M | 1.4B | 1.5B | 1.7B | 1.7B | 1.6B | 1.7B | 1.7B | 1.6B | 1.6B |
| Total Assets | 308M | 248M | 299M | 321M | 1.7B | 1.8B | 2.3B | 2.3B | 2.2B | 2.1B | 2.0B | 2.0B | 2.1B |
| Total Liabilities | 215M | 106M | 110M | 112M | 236M | 327M | 547M | 592M | 526M | 473M | 387M | 392M | 444M |
| Intangibles | N/A | N/A | N/A | 7.3M | 328M | 273M | 326M | 276M | 261M | 252M | 245M | 249M | 250M |
| Retained Earnings | 78M | 118M | 153M | 162M | 118M | 153M | 180M | 175M | 160M | 169M | 218M | 255M | 266M |
| Working Capital | 140M | 75M | 101M | 121M | 295M | 367M | 86M | 172M | 119M | 119M | 88M | 60M | 41M |
| Current Assets | 197M | 132M | 161M | 190M | 420M | 524M | 286M | 368M | 329M | 329M | 305M | 278M | 304M |
| Current Liabilities | 56M | 58M | 60M | 69M | 125M | 157M | 200M | 196M | 210M | 210M | 216M | 218M | 263M |
| Per Share Data | |||||||||||||
| EPS | 2.18 | 1.87 | 1.61 | 0.92 | -1.03 | 3.67 | 3.77 | 2.28 | 1.94 | 2.91 | 4.67 | 5.41 | 5.58 |
| Owner EPS | 2.23 | 2.29 | 0.74 | 1.15 | -0.00 | 6.35 | 3.34 | 4.27 | 2.17 | 2.04 | 4.12 | 5.42 | 6.50 |
| Book Value | 4.35 | 6.66 | 8.69 | 9.34 | 93.67 | 66.16 | 76.40 | 70.94 | 68.00 | 68.90 | 68.90 | 70.35 | 72.28 |
| Cash Flow/Share | 3.64 | 3.61 | 2.05 | 2.51 | 3.08 | 9.14 | 6.25 | 7.47 | 5.24 | 4.88 | 7.02 | 8.47 | 7.86 |
| Dividends/Share | N/A | N/A | N/A | 0.50 | 1.50 | 2.10 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.40 | 2.49 |
| Shares Out. | 21.3M | 21.5M | 21.7M | 22.4M | 15.2M | 22.1M | 22.9M | 24.2M | 24.1M | 24.0M | 24.1M | 23.4M | 22.6M |
| Valuation | |||||||||||||
| P/E Ratio | 13.9 | 13.7 | 20.8 | 40.2 | N/A | 35.9 | 22.1 | 22.7 | 38.1 | 30.5 | 19.3 | 15.0 | 13.5 |
| P/FCF | 18.2 | 16.9 | 46.2 | 43.5 | 74.2 | 17.8 | 19.9 | 9.5 | 21.4 | 26.5 | 16.9 | 12.3 | 9.8 |
| EV/EBIT | 7.3 | 5.6 | 9.0 | 10.7 | N/A | 22.2 | 17.0 | 15.1 | 23.4 | 20.8 | 12.8 | N/A | 8.8 |
| Price/Book | 6.9 | 3.8 | 3.8 | 4.0 | 1.0 | 2.0 | 1.1 | 0.7 | 1.1 | 1.3 | 1.3 | 1.2 | 1.0 |
| Price/Sales | 1.1 | 1.1 | 1.0 | 1.7 | 2.3 | 2.8 | 2.5 | 1.4 | 1.4 | 1.6 | 1.9 | 1.5 | 1.3 |
| FCF Yield | 11.0% | 11.8% | 4.3% | 4.6% | 1.3% | 5.6% | 5.0% | 10.5% | 4.7% | 3.8% | 5.9% | 8.1% | 10.2% |
| Market Cap | 642M | 549M | 724M | 828M | 1.4B | 2.9B | 1.9B | 1.2B | 1.8B | 2.1B | 2.2B | 1.9B | 1.7B |
| Avg. Price | 44.23 | 44.91 | 42.49 | 70.10 | 94.34 | 124.34 | 111.21 | 67.09 | 60.13 | 77.05 | 96.59 | 82.86 | 75.64 |
| Year-End Price | 60.27 | 51.18 | 66.76 | 73.94 | 94.27 | 131.76 | 83.51 | 51.67 | 73.87 | 88.62 | 90.15 | 81.15 | 75.64 |
Strategic Education, Inc. passes 3 of 9 quality checks, indicating weak fundamentals.
Strategic Education, Inc. trades at 14.0x trailing earnings, compared to its 15-year median P/E of 22.7x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 11.2x vs a median of 20.7x. The company's 5-year average ROIC is 5.1% with a gross margin of 47.7%. Total shareholder yield (dividends + buybacks) is 11.9%. At current prices, the estimated annualized return to fair value is +1.4%.
Strategic Education, Inc. (STRA) reported annual revenue of $1.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Strategic Education, Inc. (STRA) has a net profit margin of 10.0%. This is a modest margin.
Strategic Education, Inc. (STRA) generated $154 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Strategic Education, Inc. (STRA) has a debt-to-equity ratio of 0.07. This indicates a conservatively financed balance sheet.
Strategic Education, Inc. (STRA) reported earnings per share (EPS) of $5.41 in its most recent fiscal year.
Strategic Education, Inc. (STRA) has a return on equity (ROE) of 7.7%. This indicates moderate shareholder returns.
Strategic Education, Inc. (STRA) has a 5-year average gross margin of 47.7%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for Strategic Education, Inc. (STRA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Strategic Education, Inc. (STRA) has a book value per share of $70.35, based on its most recent annual SEC filing.