Strayer Story

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STRA -- USA Stock  

USD 85.89  0.03  0.0349%

Strayer Education Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 28,897.2. The current year Earnings before Tax is expected to grow to about 66.7 M, whereas Revenue Per Employee is forecasted to decline to about 346.4 K. Despite somewhat strong basic indicators, Strayer Education is not utilizing all of its potentials. The latest stock price disturbance, may contribute to a short-term swings for the investors. The entity current probability of distress is under 1 percent. Will investors continue to be optimistic, or should we expect a sell-off?
Published over a month ago
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When the last time you checked Strayer Education (NASDAQ:STRA) fundamentals?
The entity has a beta of 0.4116, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Strayer's beta means in this case. As returns on the market increase, Strayer Education returns are expected to increase less than the market. However, during the bear market, the loss on holding Strayer Education will be expected to be smaller as well. Even though it is essential to pay attention to Strayer Education current price movements, it is always good to be careful when utilizing equity historical returns. Our philosophy towards measuring any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Strayer Education exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Strayer Education has an expected return of -0.0206%. Please be advised to validate Strayer Education expected short fall, and the relationship between the value at risk and daily balance of power to decide if Strayer Education stock performance from the past will be repeated at some point in the near future.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Strayer Education income statement, its balance sheet, and the statement of cash flows. Potential Strayer Education investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Strayer Education investors may use each financial statement separately, they are all related. The changes in Strayer Education's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Strayer Education's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Strayer Education fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Strayer Education performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Strayer Education shares is the value that is considered the true value of the share. If the intrinsic value of Strayer is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Strayer Education.
Please read more on our fundamental analysis page.

Are Strayer Education Earnings Expected to grow?

The future earnings power of Strayer Education involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Strayer Education factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Strayer Education stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Strayer expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Strayer Education earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Strayer Education dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Strayer one year expected dividend income is about $1.13 per share.
Strayer Education Preferred Dividends Income Statement Impact is projected to decrease significantly based on the last few years of reporting. The past year's Preferred Dividends Income Statement Impact was at 1.6 Million. The current year Dividend Yield is expected to grow to 0.07, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (55.9 M).
Last ReportedProjected for 2021
Preferred Dividends Income Statement Impact1.6 M1.6 M
Payment of Dividends and Other Cash Distributions-54.4 M-55.9 M
Dividend Yield 0.06  0.07 
Dividends per Basic Common Share 3.60  3.88 
Investing in dividend-paying stocks, such as Strayer Education is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Strayer Education must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Strayer Education. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How Strayer utilizes its cash?

To perform a cash flow analysis of Strayer Education, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Strayer Education is receiving and how much cash it distributes out in a given period. The Strayer Education cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Strayer Education Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 142.91 Million

Strayer Education Gross Profit

Strayer Education Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Strayer Education previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Strayer Education Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Acquisition by Darmon Tal of 3505 shares of Strayer Education subject to Rule 16b-3

Legal trades by Strayer Education insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Strayer insider trading alert for grant of common stock by Darmon Tal, Chief Accounting Officer, on 23rd of March 2021. This event was filed by Strategic Education Inc with SEC on 2021-03-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

Many companies such as Strayer Education have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Strayer is distributed among investors.

Ownership Allocation

Strayer Education maintains a total of 24.4 Million outstanding shares. The majority of Strayer Education outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Strayer Education to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Strayer Education. Please pay attention to any change in the institutional holdings of Strayer Education as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors1.62
 2020 2021 (projected)
Long Term Debt to Equity0.06330.065
Interest Coverage13.013.34

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Strayer Education has an asset utilization ratio of 410.57 percent. This suggests that the company is making $4.11 for each dollar of assets. An increasing asset utilization means that Strayer Education is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
508.9 M
Current Assets508.92 Million76.95
Assets Non Current102.11 Million15.44
Goodwill20.14 Million3.05
Tax Assets30.2 Million4.57

Strayer technical analysis suggests possible throwback

The downside deviation is down to 2.36 as of today. Strayer Education currently demonstrates below-average downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.02. However, we advise investors to further question Strayer Education expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Strayer Education's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Strayer Education's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Strayer Education

Whereas some firms under the education & training services industry are still a bit expensive, Strayer Education may offer a potential longer-term growth to investors. To summarize, as of the 26th of February 2021, our analysis shows that Strayer Education slowly supersedes the market. The company is undervalued and projects very low odds of financial distress for the next 2 years. Our actual 30 days buy-or-sell advice on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Strayer Education. Please refer to our Terms of Use for any information regarding our disclosure principles.

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