Strategic Education, Inc. (STRA) 10-Year Financial Performance & Capital Metrics

STRA • • Industrial / General

Consumer DefensiveEducation & TrainingHigher Education & Professional TrainingGeneral Higher Education

AboutStrategic Education, Inc., through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. It operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. The company operates Strayer University that offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health services administration, public administration, and criminal justice at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and an executive MBA online through its Jack Welch Management Institute. It also operates Capella University, an online post-secondary education institution that provides various bachelor's, master's, and doctoral degree programs to working adults in arts and sciences, business and technology, counseling and human services, education, nursing and health sciences, psychology, and public service leadership. The company operates Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising in New Zealand. It also offers Workforce Edge, a platform to employers that provides education benefits administration solutions; and Sophia Learning, which enables lower cost education benefits programs. The company was founded in 1892 and is headquartered in Herndon, Virginia.Show more

Revenue $1.22B +7.7%
EBITDA $200M +31.0%
Net Income $113M +61.5%
EPS (Diluted) 4.67 +60.5%
Gross Margin 46.68% +3.9%
EBITDA Margin 16.39% +21.7%
Operating Margin 12.76% +51.6%
Net Margin 9.24% +49.9%
ROE 6.8% +60.2%
ROIC 6.97% +64.8%
Debt/Equity 0.08 -41.7%
Interest Coverage -

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 2.9%
✓Trading at only 1.2x book value

✗Weaknesses

✗Weak 3Y average ROE of 4.6%

Price & Volume

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Growth Metrics

Revenue CAGR

10Y10.58%

5Y4.12%

3Y2.53%

TTM3.74%

Profit (Net Income) CAGR

10Y9.29%

5Y6.79%

3Y26.94%

TTM-9.83%

EPS CAGR

10Y0.71%

5Y4.94%

3Y27%

TTM-8.38%

ROCE

10Y Avg11.01%

5Y Avg5.22%

3Y Avg5.57%

Latest8.3%

Peer Comparison

General Higher Education

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
APEIAmerican Public Education, Inc.	732.44M	40.50	73.64	4%	4.87%	11.42%	3.79%	0.66
GVVisionary Holdings Inc.	5.11M	1.25	59.24	11.25%	-23.15%	-21.19%		3.56
LAURLaureate Education, Inc.	5.22B	35.42	18.45	5.55%	12.86%	18.22%	3.08%	0.45
STRAStrategic Education, Inc.	1.99B	84.52	18.10	7.68%	9.08%	6.89%	6.49%	0.08
PRDOPerdoceo Education Corporation	2.05B	31.81	14.53	-4.05%	20.09%	15.68%	7.67%	0.14
PXEDPhoenix Education Partners, Inc	1.09B	30.47	8.10	6.02%	13.29%	45.46%	5.96%	0.31
LXEHLixiang Education Holding Co., Ltd.	3.65M	0.20	-0.01	-35.45%	-179.26%	-103.96%		0.90

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	434.44M	441.09M	454.85M	634.18M	997.14M	1.03B	1.13B	1.07B	1.13B	1.22B
Revenue Growth %	-0.03%	0.02%	0.03%	0.39%	0.57%	0.03%	0.1%	-0.06%	0.06%	0.08%
Cost of Goods Sold+	234.1M	241.03M	245.18M	340.08M	530.6M	532.66M	608.26M	597.32M	623.9M	650.5M
COGS % of Revenue	0.54%	0.55%	0.54%	0.54%	0.53%	0.52%	0.54%	0.56%	0.55%	0.53%
Gross Profit+	200.34M	200.06M	209.67M	294.11M	466.53M	494.99M	523.42M	468.16M	509.02M	569.43M
Gross Margin %	0.46%	0.45%	0.46%	0.46%	0.47%	0.48%	0.46%	0.44%	0.45%	0.47%
Gross Profit Growth %	-0.04%	-0%	0.05%	0.4%	0.59%	0.06%	0.06%	-0.11%	0.09%	0.12%
Operating Expenses+	130.64M	142.59M	157.47M	251.19M	356M	385.61M	449.51M	397.4M	413.7M	413.81M
OpEx % of Revenue	0.3%	0.32%	0.35%	0.4%	0.36%	0.38%	0.4%	0.37%	0.37%	0.34%
Selling, General & Admin	114.34M	124.76M	137.97M	194.03M	272.41M	295.23M	361.35M	379.82M	384.44M	412.16M
SG&A % of Revenue	0.26%	0.28%	0.3%	0.31%	0.27%	0.29%	0.32%	0.36%	0.34%	0.34%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	16.3M	17.83M	19.49M	3.6M	83.59M	90.38M	88.17M	17.58M	29.26M	1.65M
Operating Income+	69.7M	57.47M	52.21M	-22.74M	110.53M	109.38M	73.91M	70.76M	95.32M	155.63M
Operating Margin %	0.16%	0.13%	0.11%	-0.04%	0.11%	0.11%	0.07%	0.07%	0.08%	0.13%
Operating Income Growth %	-0.15%	-0.18%	-0.09%	-1.44%	5.86%	-0.01%	-0.32%	-0.04%	0.35%	0.63%
EBITDA+	87.8M	75.29M	70.94M	31.8M	215.39M	218.54M	177.33M	133.88M	152.63M	200.01M
EBITDA Margin %	0.2%	0.17%	0.16%	0.05%	0.22%	0.21%	0.16%	0.13%	0.13%	0.16%
EBITDA Growth %	-0.14%	-0.14%	-0.06%	-0.55%	5.77%	0.01%	-0.19%	-0.24%	0.14%	0.31%
D&A (Non-Cash Add-back)	18.1M	17.82M	18.73M	54.54M	104.86M	109.15M	103.42M	63.12M	57.31M	44.38M
EBIT	70.12M	54.26M	56.58M	-19.14M	132.46M	135.54M	110.58M	73.99M	113.12M	157.28M
Net Interest Income+	-3.57M	-642K	-642K	0	3.4M	1.2M	0	0	0	0
Interest Income	283K	0	0	0	3.4M	2.6M	0	0	0	0
Interest Expense	3.85M	642K	642K	0	0	1.4M	0	0	0	0
Other Income/Expense	-3.57M	-180K	437K	3.6M	13.19M	4.57M	2.69M	-1.19M	5.41M	5.8M
Pretax Income+	66.13M	57.29M	52.65M	-19.14M	123.72M	113.96M	76.6M	69.57M	100.73M	161.43M
Pretax Margin %	0.15%	0.13%	0.12%	-0.03%	0.12%	0.11%	0.07%	0.07%	0.09%	0.13%
Income Tax+	26.11M	22.49M	32.03M	-3.47M	42.59M	27.69M	21.51M	22.9M	30.93M	48.75M
Effective Tax Rate %	0.61%	0.61%	0.39%	0.82%	0.66%	0.76%	0.72%	0.67%	0.69%	0.7%
Net Income+	40.02M	34.8M	20.61M	-15.67M	81.14M	86.27M	55.09M	46.67M	69.79M	112.68M
Net Margin %	0.09%	0.08%	0.05%	-0.02%	0.08%	0.08%	0.05%	0.04%	0.06%	0.09%
Net Income Growth %	-0.14%	-0.13%	-0.41%	-1.76%	6.18%	0.06%	-0.36%	-0.15%	0.5%	0.61%
Net Income (Continuing)	40.02M	34.8M	20.61M	-15.67M	81.14M	86.27M	55.09M	46.67M	69.79M	112.68M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	3.73	3.21	1.84	-1.03	3.67	3.77	2.28	1.94	2.91	4.67
EPS Growth %	-0.14%	-0.14%	-0.43%	-1.56%	4.56%	0.03%	-0.4%	-0.15%	0.5%	0.6%
EPS (Basic)	3.78	3.28	1.93	-1.03	3.73	3.81	2.30	1.97	2.98	4.81
Diluted Shares Outstanding	10.74M	10.85M	11.2M	15.19M	22.1M	22.86M	24.12M	24M	23.96M	24.14M
Basic Shares Outstanding	10.59M	10.61M	10.68M	15.19M	21.73M	22.63M	23.95M	23.68M	23.4M	23.41M
Dividend Payout Ratio	-	-	0.55%	-	0.57%	0.65%	1.07%	1.27%	0.84%	0.52%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	138.8M	160.54M	190.35M	420.36M	524.09M	286.12M	367.79M	329.06M	329.07M	304.94M
Cash & Short-Term Investments	106.89M	129.25M	155.93M	348.85M	454.57M	195.07M	275.42M	222.82M	208.21M	184.02M
Cash Only	106.89M	129.25M	155.93M	311.73M	419.69M	187.51M	268.92M	213.67M	168.48M	137.07M
Short-Term Investments	0	0	0	37.12M	34.87M	7.56M	6.5M	9.16M	39.73M	46.95M
Accounts Receivable	18.52M	20.53M	23.12M	55.69M	51.52M	51.6M	51.59M	62.95M	76.1M	76.13M
Days Sales Outstanding	15.56	16.99	18.55	32.05	18.86	18.33	16.64	21.57	24.52	22.78
Inventory	0	0	0	0	0	0	0	0	0	0
Days Inventory Outstanding	-	-	-	-	-	-	-	-	-	-
Other Current Assets	13.39M	10.77M	11.29M	15.81M	18M	39.46M	22.91M	24.21M	24.73M	23.95M
Total Non-Current Assets+	109.64M	138.15M	130.93M	1.24B	1.27B	2.01B	1.94B	1.83B	1.8B	1.74B
Property, Plant & Equipment	77.14M	73.12M	73.76M	122.68M	201.81M	279.54M	300.18M	258.09M	237.73M	214.92M
Fixed Asset Turnover	5.63x	6.03x	6.17x	5.17x	4.94x	3.68x	3.77x	4.13x	4.77x	5.68x
Goodwill	6.8M	20.74M	20.74M	732.54M	732.08M	1.32B	1.29B	1.25B	1.25B	1.21B
Intangible Assets	0	0	7.26M	328.34M	273.01M	326.42M	276.38M	260.54M	251.62M	245.1M
Long-Term Investments	2.5M	2.8M	3.4M	37.68M	54.55M	48.59M	42.53M	30.4M	19.36M	31.2M
Other Non-Current Assets	3.19M	10.39M	8.57M	-39.93M	3.87M	36.61M	33.14M	32.38M	35.55M	46.7M
Total Assets+	248.43M	298.7M	321.28M	1.66B	1.79B	2.3B	2.31B	2.16B	2.13B	2.05B
Asset Turnover	1.75x	1.48x	1.42x	0.38x	0.56x	0.45x	0.49x	0.49x	0.53x	0.60x
Asset Growth %	-0.19%	0.2%	0.08%	4.17%	0.08%	0.28%	0%	-0.06%	-0.02%	-0.04%
Total Current Liabilities+	57.59M	59.84M	69.07M	125.13M	156.75M	200.05M	195.75M	209.94M	209.62M	216.46M
Accounts Payable	42.25M	41.13M	46.18M	36.57M	47.5M	64.05M	45.34M	45.83M	49.25M	55.73M
Days Payables Outstanding	65.88	62.29	68.74	39.25	32.68	43.89	27.21	28	28.81	31.27
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	281K	133K	0	35.84M	33.92M	33.16M	27.42M	32.61M	34.99M	38.84M
Current Ratio	2.41x	2.68x	2.76x	3.36x	3.34x	1.43x	1.88x	1.57x	1.57x	1.41x
Quick Ratio	2.41x	2.68x	2.76x	3.36x	3.34x	1.43x	1.88x	1.57x	1.57x	1.41x
Cash Conversion Cycle	-	-	-	-	-	-	-	-	-	-
Total Non-Current Liabilities+	47.99M	50.48M	43.02M	110.67M	169.95M	347.44M	396.13M	316.01M	263.08M	170.78M
Long-Term Debt	0	0	0	-2.3M	0	141.82M	141.63M	101.4M	61.4M	0
Capital Lease Obligations	0	2.68M	2.83M	2.3M	80.56M	106.15M	162.82M	134.01M	127.73M	103M
Deferred Tax Liabilities	-17.69M	-20.66M	-23.86M	59.36M	47.94M	53.41M	44.59M	34.6M	28.34M	27.59M
Other Non-Current Liabilities	33.42M	29.82M	19.15M	19.23M	10.53M	11.19M	12.38M	9.47M	8.41M	5.68M
Total Liabilities	105.58M	110.32M	112.08M	235.81M	326.7M	547.49M	591.89M	525.96M	472.69M	387.24M
Total Debt+	3.13M	2.68M	2.83M	2.3M	105.84M	282.78M	331.46M	259.28M	213.32M	125.23M
Net Debt	-103.76M	-126.56M	-153.1M	-309.43M	-313.85M	95.27M	62.54M	45.61M	44.84M	-11.85M
Debt / Equity	0.02x	0.01x	0.01x	0.00x	0.07x	0.16x	0.19x	0.16x	0.13x	0.08x
Debt / EBITDA	0.04x	0.04x	0.04x	0.07x	0.49x	1.29x	1.87x	1.94x	1.40x	0.63x
Net Debt / EBITDA	-1.18x	-1.68x	-2.16x	-9.73x	-1.46x	0.44x	0.35x	0.34x	0.29x	-0.06x
Interest Coverage	18.10x	89.52x	81.32x	-	-	78.13x	-	-	-	-
Total Equity+	142.86M	188.37M	209.2M	1.43B	1.46B	1.75B	1.71B	1.64B	1.65B	1.66B
Equity Growth %	0.54%	0.32%	0.11%	5.81%	0.03%	0.2%	-0.02%	-0.05%	0.01%	0.01%
Book Value per Share	13.30	17.37	18.68	93.83	66.19	76.48	71.06	68.16	68.98	68.87
Total Shareholders' Equity	142.86M	188.37M	209.2M	1.43B	1.46B	1.75B	1.71B	1.64B	1.65B	1.66B
Common Stock	110K	111K	112K	217K	220K	244K	246K	244K	244K	245K
Retained Earnings	118.01M	152.81M	162.01M	118.32M	152.82M	179.65M	174.57M	159.69M	168.87M	218.41M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	0	-157.13M	-170.3M	32K	233K	48.88M	9.2M	-35.07M	-34.25M	-88.56M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	76.9M	44.51M	56.16M	46.87M	202.15M	142.91M	180.53M	126.05M	117.12M	169.33M
Operating CF Margin %	0.18%	0.1%	0.12%	0.07%	0.2%	0.14%	0.16%	0.12%	0.1%	0.14%
Operating CF Growth %	-0.01%	-0.42%	0.26%	-0.17%	3.31%	-0.29%	0.26%	-0.3%	-0.07%	0.45%
Net Income	40.02M	34.8M	20.61M	-15.67M	81.14M	86.27M	55.09M	46.67M	69.79M	112.68M
Depreciation & Amortization	18.1M	17.82M	18.73M	54.54M	104.86M	109.15M	103.42M	63.12M	57.31M	44.38M
Stock-Based Compensation	10.21M	10.77M	11.63M	15.53M	12.16M	14.61M	18.15M	21.79M	19.77M	25.57M
Deferred Taxes	-4.01M	-8.7M	6.43M	-16.32M	-8.04M	-13.43M	-7.71M	-8.67M	-6.32M	-150K
Other Non-Cash Items	604K	-1.46M	-1.65M	18.78M	6.67M	1.46M	17.62M	-1.12M	3.49M	-5.11M
Working Capital Changes	11.96M	-8.72M	405K	-10M	5.35M	-55.16M	-6.04M	4.25M	-26.93M	-8.05M
Change in Receivables	-1.99M	-1.45M	-3.25M	7.88M	1.77M	19.66M	-196K	-12.56M	-12.87M	221K
Change in Inventory	2.22M	-12.16M	-10.61M	0	-5.58M	22.68M	6.7M	0	0	0
Change in Payables	-752K	-262K	4.47M	1.14M	245K	-22.68M	-6.7M	-4.34M	552K	11.58M
Cash from Investing+	-12.69M	-20.8M	-18.05M	130.14M	-38.07M	-642.19M	-33.09M	-31.36M	-48.55M	-64.36M
Capital Expenditures	-12.69M	-13.16M	-18.05M	-27.55M	-38.69M	-46.81M	-49.43M	-43.17M	-36.94M	-40.58M
CapEx % of Revenue	0.03%	0.03%	0.04%	0.04%	0.04%	0.05%	0.04%	0.04%	0.03%	0.03%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	0	-1.24M	623K	0	0	6.53M	5.58M	0
Cash from Financing+	-119.6M	-1.36M	-11.42M	-21.21M	-55.82M	279.19M	-67.89M	-142.36M	-113.61M	-136.77M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	-11.42M	-27.84M	-46.63M	-55.96M	-59.05M	-59.24M	-58.78M	-58.97M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-850K	-1.36M	0	6.63M	-9.2M	-26.68M	-2.94M	-3M	-4.83M	-5.02M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	64.21M	31.35M	38.1M	19.32M	163.46M	96.09M	131.09M	82.88M	80.18M	128.75M
FCF Margin %	0.15%	0.07%	0.08%	0.03%	0.16%	0.09%	0.12%	0.08%	0.07%	0.11%
FCF Growth %	-0.09%	-0.51%	0.22%	-0.49%	7.46%	-0.41%	0.36%	-0.37%	-0.03%	0.61%
FCF per Share	5.98	2.89	3.40	1.27	7.40	4.20	5.43	3.45	3.35	5.33
FCF Conversion (FCF/Net Income)	1.92x	1.28x	2.72x	-2.99x	2.49x	1.66x	3.28x	2.70x	1.68x	1.50x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	33.98%	21.01%	10.37%	-1.92%	5.62%	5.37%	3.18%	2.79%	4.24%	6.8%
Return on Invested Capital (ROIC)	118.41%	85.43%	66.42%	-2.91%	7.32%	5.48%	3.06%	3.07%	4.23%	6.97%
Gross Margin	46.11%	45.36%	46.1%	46.38%	46.79%	48.17%	46.25%	43.94%	44.93%	46.68%
Net Margin	9.21%	7.89%	4.53%	-2.47%	8.14%	8.39%	4.87%	4.38%	6.16%	9.24%
Debt / Equity	0.02x	0.01x	0.01x	0.00x	0.07x	0.16x	0.19x	0.16x	0.13x	0.08x
Interest Coverage	18.10x	89.52x	81.32x	-	-	78.13x	-	-	-	-
FCF Conversion	1.92x	1.28x	2.72x	-2.99x	2.49x	1.66x	3.28x	2.70x	1.68x	1.50x
Revenue Growth	-2.6%	1.53%	3.12%	39.43%	57.23%	3.06%	10.12%	-5.85%	6.33%	7.68%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
U.S. Higher Education	-	-	-	829.27M	770.98M	818.95M	857.89M
U.S. Higher Education Growth	-	-	-	-	-7.03%	6.22%	4.75%
Australia/New Zealand	-	-	23.38M	250.12M	230.75M	233.52M	257.12M
Australia/New Zealand Growth	-	-	-	969.77%	-7.75%	1.20%	10.11%
Education Technology Services	-	-	-	52.29M	63.75M	80.45M	104.92M
Education Technology Services Growth	-	-	-	-	21.92%	26.19%	30.41%
Strayer	471.1M	527.03M	-	-	-	-	-
Strayer Growth	-	11.87%	-	-	-	-	-
Capella	154.92M	455.32M	-	-	-	-	-
Capella Growth	-	193.91%	-	-	-	-	-
Others	-	14.79M	-	-	-	-	-
Others Growth	-	-	-	-	-	-	-
All Others	8.16M	-	-	-	-	-	-
All Others Growth	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Strategic Education, Inc. (STRA) has a price-to-earnings (P/E) ratio of 18.1x. This is roughly in line with market averages.

Growth & Financials

Strategic Education, Inc. (STRA) reported $1.26B in revenue for fiscal year 2024. This represents a 100% increase from $627.4M in 2011.

Strategic Education, Inc. (STRA) grew revenue by 7.7% over the past year. This is steady growth.

Yes, Strategic Education, Inc. (STRA) is profitable, generating $114.0M in net income for fiscal year 2024 (9.2% net margin).

Dividend & Returns

Yes, Strategic Education, Inc. (STRA) pays a dividend with a yield of 2.89%. This makes it attractive for income-focused investors.

Strategic Education, Inc. (STRA) has a return on equity (ROE) of 6.8%. This is below average, suggesting room for improvement.

Strategic Education, Inc. (STRA) generated $131.7M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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