Stride Inc. Common Stock (LRN)
StalwartFairStock Score: 67/100 — STEADY
Key Financials
| Current Price | $88.29 |
| Market Cap | $4.2B |
| P/E Ratio | 13.82 |
| ROE | 20.14% |
| Dividend Yield | —% |
| Sector | Consumer Defensive |
Strengths
- Generates $52 million in annual free cash flow (1.2% yield on market cap)
- Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
- High return on equity of 22.3% demonstrating efficient capital deployment
- Conservative balance sheet with debt-to-equity of just 0.36, providing financial flexibility
- Altman Z-Score of 5.1 confirms minimal bankruptcy risk and strong solvency
AI Analysis
Stride Inc. Common Stock is a small-cap consumer defensive company valued at $4.2 billion. The business generates $2.5 billion in annual revenue with a 3.9% net margin and $52 million in free cash flow. From a quality standpoint, Stride shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 5.1 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 15.1x earnings, with trades above its Graham Number with a negative 34% margin. Growth dynamics show revenue growing at 7.5% and profit growth of 3.2%. Our composite FairStock Score of 67/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $52 million in annual free cash flow (1.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer