Strategic Education, Inc.

Valuation Analysis

About the Company

Strategic Education, Inc. provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration 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 MBA online through its Jack Welch Management Institute. In addition, the company operates Capella University, an online accredited in

Strategic Education, Inc. Stock at a Glance

Strategic Education, Inc. (STRA) is currently trading at $77.41 with a market capitalization of $1.8B. The trailing P/E ratio stands at 13.7x, with a forward P/E of 9.56x. The 52-week range spans from $69.70 to $88.50; the current price is 12.5% below the yearly high. Year-over-year revenue growth stands at +0.8%. The net profit margin stands at 10.21%.

💰 Dividend

Strategic Education, Inc. pays an annual dividend of $2.40 per share, representing a yield of 3.1%. The payout ratio stands at 42.48%.

📊 Analyst Rating

3 analysts rate Strategic Education, Inc. (STRA) on consensus: Buy. The average price target is $87.00, implying +12.39% from the current price. Analyst price targets range from $80.00 to $95.00.

Strategic Education, Inc.: The Investment Case in Detail

Strategic Education, Inc. (STRA) operates in the Consumer Defensive — specifically Education & Training Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 0.8%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

With a PEG ratio of 0.69, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 6.93x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 9.56x is meaningfully below the trailing 13.7x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.1% combined with a payout ratio of 42.48% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.81%).

Trading Data

💵 Dividend Info

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