Strayer Education Inc

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STRA : NASDAQ : Services
$80.57 | %
Today's Range: 79.44 - 80.8
Avg. Daily Volume: 96900.0
01/20/17 - 4:00 PM ET

Financial Analysis


STRAYER EDUCATION INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. STRAYER EDUCATION INC is extremely liquid. Currently, the Quick Ratio is 2.30 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 36.20% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)102.1699.14
EBITDA ($mil)9.2311.67
EBIT ($mil)4.837.25
Net Income ($mil)2.883.72


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)120.587.62
Total Assets ($mil)286.5230.27
Total Debt ($mil)0.00.0
Equity ($mil)173.22127.18


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin49.248.7
EBITDA Margin9.0311.77
Operating Margin4.737.32
Sales Turnover1.521.9
Return on Assets12.617.33
Return on Equity20.8531.39
Debt Q3 FY16 Q3 FY15
Current Ratio2.482.08
Debt/Capital0.00.0
Interest Expense0.161.14
Interest Coverage30.06.34


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)11.0911.03
Div / share0.00.0
EPS0.270.35
Book value / share15.6111.53
Institutional Own % n/a n/a
Avg Daily Volume93000.074906.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 42.22 for the Diversified Consumer Services industry and a value on par with the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 5.14 indicates a significant premium versus the S&P 500 average of 2.84 and a discount versus the industry average of 5.69. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, STRAYER EDUCATION INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
STRA 23.95 Peers 42.22   STRA 16.69 Peers 20.76

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

STRA is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

STRA is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
STRA 22.10 Peers 28.61   STRA NM Peers 1.69

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

STRA is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

STRA's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STRA 5.14 Peers 5.69   STRA -10.19 Peers 22.17

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

STRA is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, STRA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
STRA 2.04 Peers 2.73   STRA -0.32 Peers 8.58

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

STRA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

STRA significantly trails its peers on the basis of sales growth

 

 

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