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Strategic Education (STRA)
NASDAQ:STRA
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Strategic Education (STRA) Price & Analysis

338 Followers

STRA Stock Chart & Stats

$83.21
$1.08(1.18%)
At close: 4:00 PM EST
$83.21
$1.08(1.18%)

Bulls Say, Bears Say

Bulls Say
Balance Sheet HealthStrategic Education's very low leverage and conservative balance sheet (debt-to-equity ~0.07, total debt ~$109M vs equity ~$1.63B) provide structural financial resilience. This supports predictable capital allocation, enables buybacks/dividends, and reduces refinancing risk across economic cycles.
High‑margin ETS GrowthThe Education Technology Services segment is scaling quickly and profitably, with double‑digit revenue growth and far higher margins (47% operating margin). As ETS represents an increasing share of operating income, the company benefits from durable, higher‑margin, employer‑affiliated revenue that diversifies tuition dependence.
Improving Free Cash FlowFree cash flow has roughly doubled, providing durable internal funding for investments, product development and capital returns. Stronger FCF enhances strategic optionality to fund Workforce Edge expansion and Tech Skills initiatives without material new leverage, supporting medium‑term growth execution.
Bears Say
Revenue Sensitivity To EnrollmentA sizable portion of revenue is tied to student enrollment, mix and pricing. Recent declines and pressure on revenue per student from higher scholarships and fewer classes per student show that revenue is sensitive to enrollment trends and pricing mix, creating structural revenue volatility if enrollment weakens.
Sub‑1x Cash Conversion ConsistencyOperating cash flow trailing net income indicates timing or working‑capital dynamics that compress cash conversion. Consistent sub‑1x coverage (~0.91 TTM) can limit rapid reinvestment, raise sensitivity to quarter‑to‑quarter volatility, and constrain flexibility during slower growth periods.
ANZ Regulatory & Visa HeadwindsRegulatory caps and slower visa approvals in Australia/New Zealand have produced enrollment declines and an operating loss, indicating structural constraints on international growth. Persistent regulatory friction could limit a key growth avenue and increase execution risk in that region over the medium term.

Strategic Education News

STRA FAQ

What was Strategic Education’s price range in the past 12 months?
Strategic Education lowest stock price was $69.70 and its highest was $88.50 in the past 12 months.
    What is Strategic Education’s market cap?
    Strategic Education’s market cap is $1.78B.
      When is Strategic Education’s upcoming earnings report date?
      Strategic Education’s upcoming earnings report date is Jul 29, 2026 which is in 29 days.
        How were Strategic Education’s earnings last quarter?
        Strategic Education released its earnings results on Apr 23, 2026. The company reported $1.42 earnings per share for the quarter, missing the consensus estimate of $1.493 by -$0.073.
          Is Strategic Education overvalued?
          According to Wall Street analysts Strategic Education’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Strategic Education pay dividends?
            Strategic Education pays a Quarterly dividend of $0.6 which represents an annual dividend yield of 2.99%. See more information on Strategic Education dividends here
              What is Strategic Education’s EPS estimate?
              Strategic Education’s EPS estimate is 1.8.
                How many shares outstanding does Strategic Education have?
                Strategic Education has 22,612,910 shares outstanding.
                  What happened to Strategic Education’s price movement after its last earnings report?
                  Strategic Education reported an EPS of $1.42 in its last earnings report, missing expectations of $1.493. Following the earnings report the stock price went down -13.669%.
                    Which hedge fund is a major shareholder of Strategic Education?
                    Currently, no hedge funds are holding shares in STRA
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Strategic Education

                      Strategic Education, Inc. (SEI) delivers a broad spectrum of educational services, encompassing both traditional campus-based and online post-secondary learning, alongside programs designed to cultivate career-ready competencies. The company operates through three principal divisions: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. Within its U.S. Higher Education portfolio, SEI manages Strayer University, which provides undergraduate and graduate degrees in disciplines such as business administration, accounting, information technology, education, healthcare administration, public administration, and criminal justice, available at physical locations across the eastern United States and through distance learning. It also offers certificate-level web and mobile application development courses via Hackbright Academy and Devmountain, as well as an executive MBA entirely online from the Jack Welch Management Institute. Another key institution is Capella University, an online-only post-secondary provider catering to working adults with bachelor's, master's, and doctoral programs spanning arts and sciences, business and technology, counseling and human services, education, nursing and health sciences, psychology, and public service leadership. Internationally, the Australia/New Zealand segment features Torrens University, which delivers undergraduate, graduate, research-focused, and specialized degrees, primarily in business, design and creative technology, health, hospitality, and education, accessible both online and at its Australian campuses. This division also includes Think Education, a vocational training organization, and New Zealand's Media Design School, renowned for its industry-aligned courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising. Furthermore, SEI's Education Technology Services offers Workforce Edge, a platform that aids employers in managing education benefits, and Sophia Learning, which facilitates more cost-effective education benefit initiatives. Founded in 1892, Strategic Education, Inc. maintains its corporate headquarters in Herndon, Virginia.

                      Strategic Education (STRA) Earnings & Revenues

                      STRA Company Deck

                      STRA Earnings Call

                      Q1 2026
                      0:00 / 0:00
                      Earnings Call Sentiment|Positive
                      The call highlighted strong performance and momentum in the Education Technology Services businesses (Sophia Learning and Workforce Edge), meaningful employer-affiliated and healthcare enrollment gains, record retention, cost reductions from productivity initiatives, and active share repurchases — all supporting management's confidence in achieving EBIT and EPS targets. Offsetting this were modest consolidated revenue declines (-1%), U.S. Higher Education revenue pressure (-4%) and lower revenue per student in Q1, continued weakness in unaffiliated Strayer enrollment, and regulatory/visa headwinds in ANZ that produced a $2.4M operating loss. On balance the positive operational shifts, margin improvement, and ETS growth materially outweigh the near-term enrollment and regional headwinds.View all STRA earnings summaries

                      STRA Stock 12 Month Forecast

                      Average Price Target

                      $87.00
                      ▲(4.55% Upside)
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