Strategic Education Stock Intrinsic Value – Thrivent Financial boosts investment in Strategic Education by nearly 100% in 2nd quarter

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Strategic Education ($NASDAQ:STRA), Inc. (SEI) is a leading provider of post-secondary education services, offering a wide range of programs through its subsidiaries, Strayer University and Capella University. With a focus on career-relevant education, SEI has established itself as a pioneer in the online learning industry, providing flexible and accessible education options to students across the United States. As a company, Strategic Education is committed to creating a strategic approach to education, constantly adapting and evolving to meet the changing needs of the workforce. This approach has not only proven successful for the company, but has also garnered attention from investors such as Thrivent Financial for Lutherans. This significant investment highlights Thrivent Financial’s confidence in SEI’s strategic direction and potential for growth in the education industry. Strategic Education’s strong financial performance and innovative approach have made it an attractive investment for companies and individuals alike.

With a focus on quality education that prepares students for success in their chosen career paths, SEI has consistently delivered strong results and maintained a solid financial position. This has not only allowed the company to expand its offerings and reach more students, but has also attracted attention from investors looking for a promising and forward-thinking company to invest in. With a strategic focus on providing relevant and accessible education options, SEI is well-positioned to continue its upward trajectory and make a positive impact in the world of education. As the demand for flexible and career-focused education options continues to grow, Strategic Education is poised to remain a leading player in the industry and deliver value to both students and investors alike.

Analysis – Strategic Education Stock Intrinsic Value

After conducting a thorough analysis of STRATEGIC EDUCATION‘s financials, I have determined that the company’s fair value is approximately $78.9 per share. This valuation has been calculated using our proprietary Valuation Line method. Currently, STRATEGIC EDUCATION’s stock is trading at $92.72, which indicates that the market has overvalued the company by about 17.5%. This suggests that the stock may be overpriced and investors should proceed with caution before making any investment decisions. One of the key factors contributing to this overvaluation is the strong financial performance of STRATEGIC EDUCATION. The company has shown consistent growth in revenue and profits over the past few years, making it an attractive option for investors. However, it is important to consider the sustainability of this growth and whether it can be maintained in the long term. Additionally, there may be other factors at play that are driving up the stock price, such as market speculation or hype surrounding the company. As a responsible financial analyst, it is important for me to not only look at the numbers but also consider external factors that may impact the stock’s valuation. In conclusion, while STRATEGIC EDUCATION may be a strong company with promising financials, it is currently trading at a higher price than its fair value. Investors should carefully assess the company’s performance and market conditions before making any investment decisions. As always, it is important to conduct thorough research and consult with a financial advisor before making any investment decisions. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Strategic Education. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Strategic Education. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Strategic Education. More…

Key Ratios Snapshot

Some of the financial key ratios for Strategic Education are shown below. More…

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

Thrivent Financial for Lutherans significantly increased its ownership in Strategic Education, Inc. during the second quarter, showcasing confidence in the company’s potential for growth. This move suggests that Thrivent Financial believes Strategic Education, Inc. is a promising investment opportunity. It will be interesting to see how this increased stake will impact the company’s stock performance in the future.

This move also highlights the importance of conducting thorough investment analysis on companies, as it allows investors to make informed decisions and potentially capitalize on opportunities for growth. Overall, this news reflects positively on Strategic Education, Inc. and may attract the attention of other investors.