Strategic Education Delivers Higher-Than-Expected EPS in Q3

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Strategic Education Stock Intrinsic Value – Strategic Education ($NASDAQ:STRA) is a provider of educational services. The company operates through three segments: Strayer University, Capella University, and Non-Degree Programs. Strategic Education’s Q3 EPS of $0.35 was $0.09 higher than the analyst estimate of $0.26.

The company attributed the higher-than-expected EPS to strong enrollment growth and favorable student mix at its universities. The company’s student mix also improved, with a higher percentage of students enrolled in higher-priced degree programs.

Earnings

STRATEGIC EDUCATION‘s total revenue reached from 1027.7M USD to 1074.6M USD in the last 3 years. In its earning report of FY2022 Q2 ending June 30, STRATEGIC EDUCATION earned 1074.6M USD in total revenue, earned 47.8M USD in net income. Compared to previous year, 5.0% decrease in total revenue, 13.2% decrease in net income.

Despite a decrease in total revenue and net income year-over-year, STRATEGIC EDUCATION’s total revenue has seen an overall increase in the last three years. This is likely due to the company’s strategic focus on education and its commitment to delivering high-quality educational experiences to its students.

Stock Price

The company’s strong results were driven by growth across all of its businesses. Strategic Education‘s stock opened at $73.70 on Friday and closed at $75.30, up 2.8% from its previous close of $73.30. The stock has been on a tear in recent months, and is up more than 30% since the beginning of the year.

VI Analysis – Strategic Education Stock Intrinsic Value

Strategic Education, Inc. is an education management company. It operates through the following segments: Strayer University and Capella University. The Strayer University segment offers undergraduate and graduate degree programs in business, technology, public administration, and education. The Capella University segment provides online post-secondary education services. The intrinsic value of Strategic Education, Inc. stock is around $63.2, calculated by VI Line. The company’s fundamentals reflect its long term potential.

However, the stock is currently overvalued by 19%, trading at $75.3 per share.

VI Peers

The company operates a network of schools, colleges and universities across the two countries. Strategic Education Inc is a publicly listed company on the Australian Securities Exchange and is a member of the S&P/ASX 200 index. The company’s major competitors are Top Education Group Ltd, Academies Australasia Group Ltd and Dadi Education Holdings Ltd.

– Top Education Group Ltd ($SEHK:01752)

The company has a market capitalization of 150.85 million as of 2022 and a return on equity of -1.05%. The company is engaged in the provision of educational services. It offers a range of services, including online and offline education, tutoring, and test preparation. The company has a wide network of schools and colleges across the world. It has a strong presence in China, with over 60% of its students coming from the country. The company is listed on the New York Stock Exchange.

– Academies Australasia Group Ltd ($ASX:AKG)

Academies Australasia Group Ltd is a provider of vocational and higher education. The company has a market capitalization of 49.77 million as of 2022 and a return on equity of -3.54%. The company offers a range of programs in areas such as business, management, accounting, hospitality, and information technology.

– Dadi Education Holdings Ltd ($SEHK:08417)

Dadi Education Holdings Ltd is a publicly traded company with a market capitalization of $29.76 million as of March 2022. The company operates in the education industry and provides educational services and products in China. Dadi Education Holdings Ltd has a negative return on equity of 7.15%. This is due to the company’s high debt levels and operating losses.

Summary

If you’re looking for an education company that delivers strong results, then you should consider investing in Strategic Education . The company reported better-than-expected earnings for its third quarter, thanks to higher enrollment and improved margins. While the stock may not be cheap at first glance, its strong fundamentals and growth potential make it worth considering for long-term investors. While this may seem expensive, the company’s earnings are expected to grow at a double-digit rate over the next few years. One of the things that makes Strategic Education appealing is its diversified business model. The company operates across a number of different segments, including online and campus-based programs, which helps to insulate it from economic downturns.

Another thing to like about Strategic Education is its strong financial position. The company has no debt and generates significant free cash flow, which it uses to fund share repurchases and acquisitions. This has helped to drive earnings per share higher in recent years. Overall, Strategic Education is a well-run company with a diversified business model and strong financials. While it may not be cheap at current levels, its long-term growth potential makes it worth considering for investors with a time horizon of three to five years or more.