Stride Intrinsic Value – Montanaro Asset Management Increases Stake in STRIDE by 20.2% in Q3

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STRIDE ($NYSE:LRN), also known as Stride, Inc., is a leading provider of online and blended learning solutions for students of all ages. The company offers a comprehensive portfolio of customized education programs to meet the needs of individual learners, schools, and districts. With its innovative approach and dedication to student success, STRIDE has become a trusted name in the education industry. In recent news, STRIDE has caught the attention of investors with its latest stake increase by Montanaro Asset Management Ltd. This significant increase in ownership highlights the growing confidence of investors in STRIDE’s prospects and potential for growth. Montanaro Asset Management Ltd is a London-based investment management firm that specializes in global equities.

The shift towards online learning has created opportunities for companies like STRIDE, with its established online learning platform and flexible programs. As more schools and students turn to online learning, STRIDE is well-positioned to capitalize on this trend and continue its growth trajectory. Moreover, STRIDE’s financial performance has been consistently strong, with a steady increase in revenue and enrollment over the past few years. With the increased stake by Montanaro Asset Management Ltd, STRIDE is likely to see a boost in its stock performance and overall market confidence. As the company continues to adapt to the changing landscape of education and focus on providing quality learning experiences for students, it is well-positioned for further growth and success in the future.

Analysis – Stride Intrinsic Value

After examining STRIDE‘s state of well-being, I have found that the company is currently in a strong financial position. Their revenue and profits have been steadily increasing over the past few years, indicating a healthy and growing business. Using our proprietary Valuation Line, I have calculated the intrinsic value of STRIDE’s share to be around $43.3. This takes into account various factors such as the company’s financial performance, market trends, and industry comparisons. However, it is important to note that STRIDE’s stock is currently trading at $102.89, which is significantly higher than its intrinsic value. In fact, our analysis shows that the stock is overvalued by 137.8% at its current price. This suggests that investors may be paying more for STRIDE’s stock than it is actually worth. While the company’s strong financial performance may justify a premium, such a large difference between the intrinsic value and market price could be cause for caution. It is important for investors to carefully consider the fundamentals of a company before making any investment decisions. While STRIDE may be a strong company with promising growth prospects, the current overvaluation of its stock should be taken into consideration when evaluating its potential as an investment opportunity. More…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

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

Peers

The company operates online and offline universities and colleges. As of March 31, 2019, the company operated 85 campuses in 29 states of the United States and Puerto Rico and enrolled approximately 75,200 students. The company’s primary competitors are Cogna Educacao SA, Perdoceo Education Corp, and Grand Canyon Education Inc.

– CognaEducacao SA ($OTCPK:COGNY)

Cogna Educacao SA is a leading provider of educational services in Brazil. The company offers a wide range of educational services, including primary and secondary education, higher education, and vocational training. Cogna Educacao SA has a market cap of 1.05B as of 2022 and a return on equity of 2.54%. The company’s primary and secondary education segment provides educational services to students aged 3 to 17 years. The higher education segment offers educational services to students aged 18 years and above. The vocational training segment provides vocational training to students aged 18 years and above.

– Perdoceo Education Corp ($NASDAQ:PRDO)

Perdoceo Education Corp has a market cap of 771.07M as of 2022, a Return on Equity of 16.14%. The company provides higher education services and products to colleges and universities. It offers online and on-campus undergraduate and graduate programs, as well as professional development courses. The company was founded in 1892 and is headquartered in Boston, Massachusetts.

– Grand Canyon Education Inc ($NASDAQ:LOPE)

As of 2022, Canyon Education Inc has a market cap of 2.8B and a ROE of 33.2%. The company provides educational services to students through its online platform. Canyon Education Inc has a strong market position and is well-positioned to continue its growth in the online education space.

Summary

Montanaro Asset Management Ltd increased their stake in Stride, Inc. by 20.2% during the third quarter. This move suggests that the company has shown potential for growth and profitability, making it an attractive investment opportunity. Investing in Stride, Inc. may be a wise decision as it is backed by a reputable asset management company and has shown promising performance in the past.

With the increase in stake, it is likely that Montanaro Asset Management Ltd sees potential for even further growth in the future. This analysis indicates that Stride, Inc. may be a favorable investment option for investors looking for long-term gains.