Latest Ratios: P/E Ratio 14.4x · EV/EBITDA 7.1x · ROE 7.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.8B | $1.8B | $2.3B | $2.2B | $1.9B | $1.4B | $2.2B | $3.5B | $1.7B | $1.0B | $874M |
| Enterprise Value | $1.7B | $1.8B | $2.2B | $2.3B | $1.9B | $1.5B | $2.3B | $3.2B | $1.4B | $850M | $748M |
| P/E Ratio → | 14.44 | 14.80 | 20.00 | 31.74 | 40.37 | 25.37 | 25.29 | 43.30 | — | 48.68 | 25.12 |
| P/S Ratio | 1.40 | 1.44 | 1.85 | 1.95 | 1.76 | 1.23 | 2.12 | 3.52 | 2.72 | 2.21 | 1.98 |
| P/B Ratio | 1.08 | 1.11 | 1.36 | 1.34 | 1.15 | 0.81 | 1.25 | 2.40 | 1.21 | 4.80 | 4.64 |
| P/FCF | 11.55 | 11.89 | 17.52 | 27.60 | 22.68 | 10.64 | 22.68 | 21.48 | 89.17 | 26.33 | 27.89 |
| P/OCF | 8.97 | 9.23 | 13.32 | 18.89 | 14.91 | 7.73 | 15.25 | 17.37 | 36.76 | 17.86 | 19.65 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.42 | 1.84 | 1.99 | 1.81 | 1.29 | 2.21 | 3.21 | 2.23 | 1.87 | 1.70 |
| EV / EBITDA | 7.14 | 7.35 | 11.22 | 14.79 | 14.38 | 8.22 | 10.41 | 14.84 | 44.44 | 11.98 | 9.93 |
| EV / EBIT | 8.91 | 10.14 | 14.26 | 19.96 | 26.02 | 13.18 | 16.78 | 24.14 | — | 15.03 | 13.78 |
| EV / FCF | — | 11.68 | 17.42 | 28.16 | 23.23 | 11.12 | 23.67 | 19.56 | 73.16 | 22.31 | 23.86 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.0% | 49.0% | 46.7% | 44.9% | 43.9% | 46.3% | 48.2% | 46.8% | 46.4% | 46.1% | 45.4% |
| Operating Margin | 15.5% | 15.5% | 12.8% | 8.4% | 6.6% | 6.5% | 10.6% | 11.1% | -3.6% | 11.5% | 13.0% |
| Net Profit Margin | 10.0% | 10.0% | 9.2% | 6.2% | 4.4% | 4.9% | 8.4% | 8.1% | -2.5% | 4.5% | 7.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.7% | 7.7% | 6.8% | 4.2% | 2.8% | 3.2% | 5.4% | 5.6% | -1.9% | 10.4% | 21.0% |
| ROA | 6.2% | 6.2% | 5.4% | 3.3% | 2.1% | 2.4% | 4.2% | 4.7% | -1.6% | 6.6% | 12.7% |
| ROIC | 9.0% | 9.0% | 7.0% | 4.2% | 3.1% | 3.1% | 5.5% | 7.3% | -2.9% | 66.4% | 85.4% |
| ROCE | 10.7% | 10.7% | 8.3% | 4.9% | 3.5% | 3.5% | 5.9% | 7.0% | -2.5% | 21.3% | 26.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.07 | 0.07 | 0.08 | 0.13 | 0.16 | 0.19 | 0.16 | 0.07 | 0.00 | 0.01 | 0.01 |
| Debt / EBITDA | 0.45 | 0.45 | 0.63 | 1.40 | 1.94 | 1.87 | 1.29 | 0.49 | 0.07 | 0.04 | 0.04 |
| Net Debt / Equity | — | -0.02 | -0.01 | 0.03 | 0.03 | 0.04 | 0.05 | -0.21 | -0.22 | -0.73 | -0.67 |
| Net Debt / EBITDA | -0.13 | -0.13 | -0.06 | 0.29 | 0.34 | 0.35 | 0.44 | -1.46 | -9.73 | -2.16 | -1.68 |
| Debt / FCF | — | -0.21 | -0.09 | 0.56 | 0.55 | 0.48 | 0.99 | -1.92 | -16.02 | -4.02 | -4.04 |
| Interest Coverage | — | — | — | — | — | — | 96.81 | — | — | 88.12 | 84.52 |
Net cash position: cash ($141M) exceeds total debt ($109M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.27 | 1.27 | 1.41 | 1.57 | 1.57 | 1.88 | 1.43 | 3.34 | 3.36 | 2.76 | 2.68 |
| Quick Ratio | 1.27 | 1.27 | 1.41 | 1.57 | 1.57 | 1.88 | 1.43 | 3.34 | 3.36 | 2.76 | 2.68 |
| Cash Ratio | 0.68 | 0.68 | 0.85 | 0.99 | 1.06 | 1.41 | 0.98 | 2.90 | 2.79 | 2.26 | 2.16 |
| Asset Turnover | — | 0.62 | 0.60 | 0.53 | 0.49 | 0.49 | 0.45 | 0.56 | 0.38 | 1.42 | 1.48 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 22.51 | 22.78 | 24.52 | 21.57 | 16.64 | 18.33 | 18.86 | 32.05 | 18.55 | 16.99 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 3.1% | 2.6% | 2.7% | 3.2% | 4.2% | 2.6% | 1.3% | 1.6% | 1.1% | — |
| Payout Ratio | 45.4% | 45.4% | 52.3% | 84.2% | 126.9% | 107.2% | 64.9% | 57.5% | — | 55.4% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.9% | 6.8% | 5.0% | 3.2% | 2.5% | 3.9% | 4.0% | 2.3% | — | 2.1% | 4.0% |
| FCF Yield | 8.7% | 8.4% | 5.7% | 3.6% | 4.4% | 9.4% | 4.4% | 4.7% | 1.1% | 3.8% | 3.6% |
| Buyback Yield | 7.8% | 7.6% | 0.5% | 0.5% | 2.1% | 0.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 11.0% | 10.7% | 3.1% | 3.1% | 5.3% | 4.7% | 2.6% | 1.3% | 1.6% | 1.1% | 0.0% |
| Shares Outstanding | — | $23M | $24M | $24M | $24M | $24M | $23M | $22M | $15M | $11M | $11M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying STRA stock.
Strategic Education, Inc.'s current P/E ratio is 14.4x. The historical average is 27.9x. This places it at the 7th percentile of its historical range.
Strategic Education, Inc.'s current EV/EBITDA is 7.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.7x.
Strategic Education, Inc.'s return on equity (ROE) is 7.7%. The historical average is 55.1%.
Based on historical data, Strategic Education, Inc. is trading at a P/E of 14.4x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Strategic Education, Inc.'s current dividend yield is 3.22% with a payout ratio of 45.4%.
Strategic Education, Inc. has 49.0% gross margin and 15.5% operating margin. Operating margin between 10-20% is typical for established companies.
Strategic Education, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Goodwill impairment risk
Metrics are mathematically derived from official filings.
Margin Expansion Offsets Revenue Plateau
STRA's operating margin expanded from 11.6% in 2024Q4 to 15.0% in 2026Q2, as per quarterly filings, while revenue growth slowed to 4.9% year-over-year, indicating cost discipline is driving profitability.
The gross margin improved from 45.7% to 47.3% over the same period, suggesting modest pricing power or cost efficiencies. Net margin also rose from 8.1% to 11.0%, reflecting operating leverage despite stagnant top-line growth. However, the sustainability of these margin gains is uncertain if revenue growth continues to decelerate, as further cost cuts may be limited.
Return on Capital Remains Modest
ROIC has hovered between 1.6% and 2.5% over the past ten quarters, as reported in financial statements, well below the cost of capital, indicating limited value creation from the asset base.
Despite improving margins, ROIC remains low because the asset base is dominated by goodwill ($1.3B, ~62% of total assets) from acquisitions, which does not generate incremental returns. ROE similarly trails peers, at 2.3% in 2026Q2 versus Perdoceo's 17.2%, reflecting the heavy intangible load. Investors should monitor whether management can deploy capital into higher-returning initiatives or if the goodwill will eventually impair.
Working Capital Efficiency Stable but Seasonal
STRA's cash conversion cycle is not calculable due to unavailable inventory data, but DSO has remained stable around 25-31 days, as per quarterly filings, indicating consistent receivables management.
The absence of inventory data suggests a service-oriented model with minimal inventory dependence. DPO has increased from 31 to 47 days over the period, indicating improved supplier payment terms or timing. The seasonal swings in FCF margin (1.5% to 25.3%) highlight the importance of working capital timing, which investors should factor into quarterly comparisons.
Minimal Leverage Provides Flexibility
STRA's debt-to-equity ratio improved from 0.12 in 2024Q1 to 0.07 in 2026Q2, with D/EBITDA at 2.06, as per SEC filings, indicating a conservative capital structure with ample headroom.
Total debt declined to $106.7M, and interest coverage is not reported, but the low leverage suggests debt service is comfortable. The balance sheet strengthening, with total liabilities down to $435.3M, provides strategic flexibility for dividends, buybacks, or potential acquisitions. However, the large goodwill balance remains a risk if impairment were to occur, potentially impacting equity.
Liquidity Cushion Tightens
STRA's current ratio declined from 1.49 in 2024Q1 to 1.10 in 2026Q2, as per quarterly data, with cash at $123.8M, indicating a shrinking but still adequate liquidity position.
The quick ratio equals the current ratio, confirming no inventory dependence. While the current ratio remains above 1.0, the trend is concerning, especially given that shareholder returns exceeded FCF in 2026Q2 ($46.1M returned vs $27.9M FCF). This suggests reliance on cash reserves, which could strain liquidity if cash flows weaken further.
Misapplied ROE in Asset-Heavy Context
ROE is often used to gauge STRA's profitability, but with goodwill at 62% of assets, ROE understates true operating performance, as per balance sheet data, making ROIC or cash-based metrics more relevant.
STRA's ROE of 2.3% in 2026Q2 appears weak versus peers like Grand Canyon Education (31.2%), but this is distorted by the large equity base from acquisitions. The low ROE does not reflect the underlying cash generation, as cumulative operating cash flow of $496.9M exceeded net income of $306.4M over ten quarters. Investors should focus on ROIC excluding goodwill or FCF yield to better assess value creation.