Strategy Inc (STRK)
Valuation Overview•Is Strategy Inc Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Fragile underlying quality score of 40/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
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Verdict: Average quality business weighed down by significant growth concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
STRK demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-1.5% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-2715.4%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $124.3M | +3.0% | -1.5% | -0.1% | -1.0% | |
| EBITDA | -$14.9M | — | -62.4% | — | — | |
| Net Income | -$12.5B | -245.6% | -40.0% | — | — | |
| EPS (Diluted) | $-38.25 | -151.3% | — | — | — | |
| Free Cash Flow | $13.0M | -2.0% | -328.4% | -83.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 67.7% | 72.9% | 76.0% | 78.3% |
| Operating Margin | -2715.4% | -521.3% | -394.6% | -193.9% |
| Net Margin | -6980.2% | -336.7% | -281.9% | -137.8% |
| FCF Margin | 2270.6% | -3296.6% | -2088.7% | -1062.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'26Latest | $20.19 | $44.75 | +121.6% | ||
| Q3'26 | $-2.19 | $-24.45 | -1017.0% | ||
| Q2'26 | $-0.86 | $-38.25 | -4337.4% | ||
| Q1'26 | $-0.08 | $-42.93 | -53562.5% | ||
| Q4'25 | $-0.10 | $9.16 | +9080.4% | ||
| Q3'25 | $-0.10 | $32.67 | +33324.9% | ||
| Q2'25 | $-2.44 | $-16.44 | -573.5% | ||
| Q1'25 | $-0.09 | $-3.03 | -3210.7% |
Total return is -13.1% (1Y), lagging the benchmark by -22.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -11.5% | -19.1% | — |
| 1Y | -13.1% | -22.8% | +9.2% |
| 3YCAGR | +0.0% | -18.8% | +16.4% |
| 5YCAGR | +0.0% | -9.2% | +16.4% |
| 10YCAGR | +0.0% | -13.1% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Strategy Inc (STRK) valuation, health, and returns.
Strategy Inc is estimated to be fairly valued under our discounted cash flow framework. trading near fair value (DCF: $0.00)
Strategy Inc has multiple valuation anchors: DCF Intrinsic Value: $0.00. A convergence of these signals offers higher conviction.
Strategy Inc displays fair financial health with a composite quality score of 40/100, supported by a Altman Z-Score of 1.0 (distress zone), Piotroski F-Score of 3/9, Return on Invested Capital (ROIC) of -9.9%.
Strategy Inc pays a 1.9% dividend yield, covered by a 0% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Strategy Inc's current growth trajectory is Accelerating. The company achieved +3.0% 1Y revenue growth and -151.3% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.5%.
Wall Street consensus is Hold based on 0 analysts, beating EPS expectations in 33% of recent quarters with a 1-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for Strategy Inc include: -41.4% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 1.08x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.