Strategic Education, Inc.

Strategic Education, Inc.

STRAยทNASDAQ

$79.16

-0.43%
Consumer DefensiveEducation & Training Services

Strategic 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.

At a Glance

Live Snapshot
Market Cap$1.80B
EPS5.5800
P/E Ratio14.05
Earnings Date07/29/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 14.1).

Valuation inputs: P/E 14.1, earnings yield +7.1%, momentum -0.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +7.7%, ROIC +7.6%).

Profitability stack: net margin +10.0%, ROE +7.7%, ROIC +7.6%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +19.2%, momentum -0.4%, net margin +10.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Strategic Education, Inc. Market vs Earnings Trajectory

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Loading price and EPS data...

Strategic Education, Inc.

Strategic Education, Inc. Fair Value Envelope

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Our analysis suggests that STRA has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $79.16, this represents a potential HIDDEN relative to our calculated worth for Strategic Education, Inc..

Intrinsic Value
Current Price: $79.16
3Y+183.0%
5Y+46.0%
10Y+70.0%
3Y+19.0%
5Y+23.0%
10Y+188.0%
3Y+171.0%
5Y+47.0%
10Y+264.0%
3Y+57.0%
5Y+39.0%
10Y+345.0%
3Y+86.0%
5Y+60.0%
10Y+391.0%
3Y-6.0%
5Y-11.0%
10Y+582.0%
Strategic Education, Inc.

Strategic Education, Inc. Profit Bridge

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Revenue1.27B
Cost of Goods Sold (647.11M)
Gross Profit621.11M
Operating Expenses (424.97M)
Operating Income196.14M
Interest Expense (0.00)
Other Income/Expense-18.75M
Pretax Income177.39M
Income Tax (50.78M)
Net Income126.61M
Net Income
126.61M

Profitability Analysis

Gross Margin

49.0%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

15.5%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

10.0%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

28.6%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

48.97%
Gross Profit Margin
5%
3Y+11.0%
5Y+2.0%
10Y+8.0%
15.47%
Operating Profit Margin
21%
3Y+133.0%
5Y+45.0%
10Y+19.0%
9.98%
Net Profit Margin
8%
3Y+128.0%
5Y+19.0%
10Y+27.0%
7.69%
Return on Equity
13%
3Y+170.0%
5Y+56.0%
10Y-58.0%
6.21%
Return on Assets
13%
3Y+188.0%
5Y+65.0%
10Y-47.0%
7.62%
Return on Invested Capital
30%
3Y+217.0%
5Y+96.0%
10Y-48.0%
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Strategic Education, Inc. Cash Conversion Engine

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Net Income126.61M
Depreciation & Amortization-7.00K
Stock-Based Compensation22.95M
Change in Working Capital-9.99M
Others50.90M
Capital Expenditures-44.25M
Free Cash Flow153.95M

Cash Flow Quality Analysis

FCF Conversion Rate

121.6%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

22.3%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+19.6%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$9.99M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Strategic Education, Inc. Funding & Solvency Profile

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Cash & Cash Equivalents150.35M
Net Receivables86.19M
Inventory0.00
Other Current Assets60.02M
Total Current Assets304 M
Property, Plant & Equipment196.64M
Goodwill & Intangible Assets1.51B
Long-Term Investments23.94M
Other Non-Current Assets47.98M
Total Non-Current Assets269 M
Total Assets
2.08B

Financial Health Analysis

Current Ratio

1.16x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.27x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

41 M

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

15% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Conservative with tight liquidity: Low debt is positive, but current ratio warrants attention. Consider whether the company is efficiently deploying its equity capital.

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Strategic Education, Inc. Street Expectations Map

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Wall Street analysts project that STRA stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 87.00, with estimates ranging from a low of 80.00 to a high of 95.00.

Lowest Target
80.00
1.06%
Consensus Target
87.00
9.90%
Highest Target
95.00
20.01%

The consensus 1-year price target stands at 87.00, with estimates ranging from a low of 80.00 to a high of 95.00.

Analyst Consensus Analysis

Upside Potential

+9.9%

Moderate upside. Analysts expect positive returns but with limited margin of safety. Consider entry timing.

Analyst Agreement

17.2% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

High

Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Strategic Education, Inc. Insider Positioning

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During the last 12 months, insiders have purchased $261K and sold $2.49M worth of STRA shares, resulting in $2.23M of net selling activity.

3 Months

Bought

1.4K

106.38K

Sold

6.3K

503.58K

Net Activity

-397K

-$397K

3-6 Months

Bought

0

0.00

Sold

25.1K

1.93M

Net Activity

-1.9M

-$1.93M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

1.9K

154.85K

Sold

700

57.18K

Net Activity

+98K

+$98K

Top Buyers

1
JDW

Jackson Daniel Wayne

Officer: Chief Financial Officer

1.9K sharesโ€ข1 transactions

$155K

2
SRS

Silberman Robert S

Director, Officer: Chairman

718 sharesโ€ข1 transactions

$58K

3
TM

Thawley Michael

Director

665 sharesโ€ข1 transactions

$48K

Top Sellers

1
MRK

Mcdonnell Raymond Karl

Director, Officer: Chief Executive Officer

18.1K sharesโ€ข1 transactions

$1.36M

2
JDW

Jackson Daniel Wayne

Officer: Chief Financial Officer

5.7K sharesโ€ข1 transactions

$464K

3
HLB

Herraiz Lizette Benedi

Officer: General Counsel

5.7K sharesโ€ข2 transactions

$452K

4
GRR

Grusky Robert R

Director

1.4K sharesโ€ข1 transactions

$112K

5
WGTI

Waite G Thomas Iii

Director

1.4K sharesโ€ข2 transactions

$109K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.23M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.10:1

Weak buy/sell ratio. Selling significantly exceeds buyingโ€”monitor for potential fundamental concerns.

Recent Trend (3 Months)

$397K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

Moderate Selling

5 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

0.76%
Dividend Yield
-5%
3Y+8.0%
5Y+13.0%
10Y-
ย 

stra Dividend History

STRA
10Y CAGR 5%
Latest $0.6
Annual $3
Stable dividend payments
Last Period: +0%