Strategic Education Inc (STRA)
NASDAQ:STRA
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Strategic Education
(NASDAQ:STRA)
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Rating:77Outperform
Price Target:
$82.00
▼(-1.45% Downside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by strong financial performance and low balance-sheet risk, reinforced by upbeat earnings-call guidance on margin expansion and continued ETS growth. Valuation is supportive with a moderate P/E and solid dividend yield. The main constraint is technical positioning, with the stock trading below key moving averages despite neutral momentum readings.
Positive Factors
Conservative balance sheet and low leverage
Very low leverage and a conservatively positioned balance sheet provide durable financial flexibility. Modest debt levels reduce refinancing and interest-rate risk, support continued dividends and buybacks, and give the company runway to invest in ETS and digital initiatives during revenue cycles.
Negative Factors
U.S. enrollment and revenue-per-student pressure
Declining revenue per student and lower U.S. Higher Education revenue reflect weaker pricing power and rising discounting. Persistently lower revenue per student can compress margins and limit sustainable earnings growth unless enrollment mix or pricing strategy improves, creating medium-term risk to profit expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and low leverage
Very low leverage and a conservatively positioned balance sheet provide durable financial flexibility. Modest debt levels reduce refinancing and interest-rate risk, support continued dividends and buybacks, and give the company runway to invest in ETS and digital initiatives during revenue cycles.
Read all positive factors
Strategic Education (STRA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend Yield2.99%
Average Volume (3M)285.57K
Price to Earnings (P/E)13.7
Beta (1Y)0.80
Revenue Growth3.02%
EPS Growth20.69%
CountryUS
Employees3,801
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.42
Shares Outstanding22,612,910
10 Day Avg. Volume247,132
30 Day Avg. Volume285,574
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)1.08
Price to Sales (P/S)1.40
P/FCF Ratio11.56
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit2.75
Enterprise Value/Ebitda7.51
Forecast
1Y Price Target
$87.00Price Target Upside4.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)7
Revenue Forecast (FY)$1.30B
Strategic Education Business Overview & Revenue Model
Company Description
Strategic Education, Inc., through its subsidiaries, provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. It operates through three segments: U.S. Higher Education, Austral...
How the Company Makes Money
Strategic Education primarily makes money by charging tuition and related academic fees for degree and non-degree programs delivered by its universities (notably Strayer University and Capella University). A substantial portion of revenue is gener...
Strategic Education Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
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.Positive Updates
Education Technology Services (ETS) Strong Growth and Profitability
ETS revenue grew 21% year-over-year to $42 million; ETS operating income rose 42% to $20 million with a 47% operating margin. ETS now represents 46% of consolidated operating income.
Negative Updates
Consolidated Revenue Decline
Total company revenue declined 1% year-over-year, driven by a slight decrease in consolidated enrollment.
Read all updates
Q1-2026 Updates
Positive
Negative
Education Technology Services (ETS) Strong Growth and Profitability
ETS revenue grew 21% year-over-year to $42 million; ETS operating income rose 42% to $20 million with a 47% operating margin. ETS now represents 46% of consolidated operating income.
Read all positive updates
Company Guidance
Management said Q1 is likely the low point for the year in both absolute revenue and revenue growth and that improving enrollment trends give them “high confidence” they will hit their notional plan for EBIT and EPS, which targets roughly 200 basis points of adjusted operating margin expansion (the notional plan also references a 46% revenue-growth target, though revenue remains uncertain). They expect full‑year revenue per student to be roughly flat (Q1 was pressured by higher scholarships/discounts and fewer classes per student), see a good chance U.S. Higher Education enrollment could reach year‑over‑year growth by year‑end, and expect ANZ to post full‑year new‑student growth (first post‑cap year) despite visa approval headwinds that may limit total ANZ enrollment. Management highlighted faster‑than‑expected AI/productivity gains (Q1 drove a 2% reduction in adjusted operating expenses, 3% operating income growth and margin expansion to 14.3%, with adjusted EPS of $1.41 reported), reiterated ETS growth expectations (Sophia 20%+ potential and Workforce Edge pipeline), and noted they repurchased ~493k shares for ~$40M in the quarter with about $200M of buyback capacity remaining through year‑end.Strategic Education Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.27B | 1.27B | 1.22B | 1.13B | 1.07B | 1.13B |
| Gross Profit | 626.96M | 621.11M | 569.43M | 509.02M | 468.16M | 523.42M |
| EBITDA | 229.81M | 225.80M | 201.65M | 170.43M | 137.12M | 214.00M |
| Net Income | 129.68M | 126.61M | 112.68M | 69.79M | 46.67M | 55.09M |
Balance Sheet | ||||||
| Total Assets | 2.08B | 2.04B | 2.05B | 2.13B | 2.16B | 2.31B |
| Cash, Cash Equivalents and Short-Term Investments | 157.63M | 148.05M | 184.02M | 208.21M | 222.82M | 275.42M |
| Total Debt | 109.20M | 109.12M | 125.23M | 213.32M | 259.28M | 331.46M |
| Total Liabilities | 443.92M | 392.13M | 387.24M | 472.69M | 525.96M | 591.89M |
| Stockholders Equity | 1.63B | 1.65B | 1.66B | 1.65B | 1.64B | 1.71B |
Cash Flow | ||||||
| Free Cash Flow | 173.92M | 153.95M | 128.75M | 80.18M | 82.88M | 131.09M |
| Operating Cash Flow | 217.92M | 198.20M | 169.33M | 117.12M | 126.05M | 180.53M |
| Investing Cash Flow | 32.00K | 8.51M | -64.36M | -48.55M | -31.36M | -33.09M |
| Financing Cash Flow | -216.14M | -206.16M | -136.77M | -113.61M | -142.36M | -67.89M |
Strategic Education Technical Analysis
Positive
83.21
Price Trends
80.27
Positive
80.61
Positive
79.70
Positive
Market Momentum
0.14
Positive
55.69
Neutral
46.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STRA, the sentiment is Positive. The current price of 83.21 is above the 20-day moving average (MA) of 82.28, above the 50-day MA of 80.27, and above the 200-day MA of 79.70, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 46.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STRA.
Strategic Education Risk Analysis
Strategic Education disclosed 39 risk factors in its most recent earnings report. Strategic Education reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Strategic Education Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $2.06B | 11.89 | 16.30% | 1.88% | 24.20% | 9.66% | |
77 Outperform | $1.72B | 13.67 | 7.85% | 2.99% | 3.02% | 20.69% | |
71 Outperform | $1.05B | 21.57 | 10.92% | ― | 3.89% | 147.39% | |
69 Neutral | $1.99B | 27.79 | 16.98% | ― | 12.59% | -1.19% | |
64 Neutral | $1.26B | 14.71 | 10.75% | ― | 17.76% | 100.25% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
50 Neutral | $428.45M | -4.36 | -12.92% | ― | 2.64% | -16.50% |
* Consumer Defensive Sector Average
STRA
Strategic Education
77.77
-2.06
-2.58%
APEI
American Public Education
57.36
33.51
140.50%
PRDO
Perdoceo Education
33.82
9.06
36.60%
LINC
Lincoln Edu
39.66
22.53
131.52%
UTI
Universal Technical Institute
35.54
7.32
25.94%
KLC
KinderCare Learning Companies Inc
3.86
-8.50
-68.77%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.