Strayer Education Inc

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STRA : NASDAQ : Services
$47.51 | %
Today's Range: 46.59 - 47.70
Avg. Daily Volume: 82,800
09/23/16 - 4:00 PM ET

Financial Analysis


STRAYER EDUCATION INC's gross profit margin for the second quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. STRAYER EDUCATION INC is extremely liquid. Currently, the Quick Ratio is 2.31 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 39.18% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)108.49109.75
EBITDA ($mil)17.3425.51
EBIT ($mil)12.920.93
Net Income ($mil)7.7911.87


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)117.42195.59
Total Assets ($mil)277.55336.0
Total Debt ($mil)0.0115.63
Equity ($mil)167.94120.66


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin47.1550.19
EBITDA Margin15.9823.24
Operating Margin11.8919.07
Sales Turnover1.561.3
Return on Assets13.3212.24
Return on Equity22.0134.1
Debt Q2 FY16 Q2 FY15
Current Ratio2.453.73
Debt/Capital0.00.49
Interest Expense0.161.27
Interest Coverage80.616.45


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)11.1711.03
Div / share0.00.0
EPS0.721.11
Book value / share15.0410.94
Institutional Own % n/a n/a
Avg Daily Volume83475.093988.0

Valuation


HOLD. STRAYER EDUCATION INC's P/E ratio indicates a significant discount compared to an average of 39.97 for the Diversified Consumer Services industry and a significant discount compared to the S&P 500 average of 24.84. Conducting a second comparison, its price-to-book ratio of 3.17 indicates a premium versus the S&P 500 average of 2.78 and a significant discount versus the industry average of 5.01. The price-to-sales ratio is well below both the S&P 500 average and 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 13.89 Peers 39.97   STRA 9.45 Peers 18.80

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 significant 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 13.53 Peers 27.58   STRA NM Peers 1.53

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 significant 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 3.17 Peers 5.01   STRA -10.68 Peers -10.90

Discount. 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 significant discount to 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 1.23 Peers 2.69   STRA -1.37 Peers 9.98

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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