Strayer Education Inc

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STRA : NASDAQ : Services
$88.86 up 0.76 | 0.86%
Today's Range: 87.76 - 89.32
Avg. Daily Volume: 70900.0
05/26/17 - 4:00 PM ET

Financial Analysis


STRAYER EDUCATION INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. STRAYER EDUCATION INC is extremely liquid. Currently, the Quick Ratio is 2.53 which clearly shows the ability to cover any short-term cash needs. STRA managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.55% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)114.91111.17
EBITDA ($mil)22.8124.72
EBIT ($mil)18.4420.29
Net Income ($mil)10.5812.42


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)147.1117.5
Total Assets ($mil)313.97277.7
Total Debt ($mil)0.00.0
Equity ($mil)198.53158.12


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin50.3651.72
EBITDA Margin19.8522.23
Operating Margin16.0518.25
Sales Turnover1.421.56
Return on Assets10.4914.78
Return on Equity16.625.96
Debt Q1 FY17 Q1 FY16
Current Ratio2.682.31
Debt/Capital0.00.0
Interest Expense0.160.16
Interest Coverage115.99126.83


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)11.1611.15
Div / share0.250.0
EPS0.951.15
Book value / share17.7914.18
Institutional Own % n/a n/a
Avg Daily Volume70722.081409.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 39.31 for the Diversified Consumer Services industry and a premium compared to the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 4.95 indicates a significant premium versus the S&P 500 average of 3.06 and a discount versus the industry average of 6.42. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. 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 29.27 Peers 39.31   STRA 17.83 Peers 17.39

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.

 

Average. 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 valuation on par 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 21.65 Peers 34.54   STRA 2.85 Peers 1.43

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.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
STRA 4.95 Peers 6.42   STRA -21.21 Peers 84.18

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 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 2.21 Peers 3.63   STRA 2.56 Peers 12.49

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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