Stride, Inc. (LRN) stock analysis

P/E below its 5-year median

Stride's P/E of 10.6 is below its own 5-year median of 16.7.

P/E below the industry

Stride's P/E of 10.6 is below the Services-educational services median of 13.0.

EV/EBITDA below its 5-year median

Stride's EV/EBITDA of 4.8 is below its 5-year median of 7.9.

P/B below the industry

Stride's price-to-book of 1.94 is below the Services-educational services median of 2.30.

Trading below fair value

The share price of $77.12 is below our fair value estimate of $117.66.

Margin of safety over 20%

The price is 34.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 11.1% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 34.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 5.8% over the last twelve months, against a 5-year average of 36.5% a year.

Growing slower than the industry

Revenue grew 2.5% over the last twelve months; the Services-educational services median is 2.7%.

Guidance raised

Stride raised its full fiscal year 2026 Capital expenditures outlook on Apr 28, 2026.

Gross margin slipping

Gross margin was 37.4% over the last twelve months, against 39.2% a year earlier.

Return on equity over 15%

Return on equity was 20.9% over the last twelve months and averaged 18.1% over five years.

Return on capital over 10%

Return on invested capital was 28.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Stride's return on equity of 20.9% is above the Services-educational services median of 0.6%.

Earnings grew over 5 years

Net income grew 36.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.2% over the last twelve months, against a 5-year average of 9.7%.

Net margin above the industry

Stride's net margin of 13.2% is above the Services-educational services median of -3.7%.

Low debt

Debt is 25.0% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 37.2% five years ago to 25.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 121% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.56 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.07; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Stride has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.