Strategic Education Inc. Common Stock (STRA)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look first for a durable business at a sensible price. Strategic Education is a slow grower, as FairStock's Lynch category says: profit grew about 8.0% a year over five years and revenue 4.3%. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $337.3M versus $321.5M in fiscal Q2 2025, net income was $37.2M versus $32.3M, and diluted EPS was $1.71 versus $1.37. That is respectable profit progress on modest revenue growth. For FY2025, revenue was $1.3B, net income $126.6M, diluted EPS $5.41; FY2024 was $1.2B, $112.7M, $4.67; FY2023 was $1.1B, $69.8M, $2.91. The trend is up. The balance sheet is conservative: D/E 0.07. Free cash flow is $168.6M, a 9.3% FCF yield, and the dividend yield is 3.01%. But returns are only moderate—ROE 8.15%, ROCE 6.07%—suggesting a limited moat. Valuation at the 2026-10-13 close of $81.89 is reasonable: P/E 13.67, P/B 1.10, EV/EBITDA 7.22, PEG 0.92. The Graham Number is $99.57, giving a 17.76% margin of safety, and Piotroski is 6/9, Altman Z 2.96. This is not a wonderful business, but it may be a fair business at a modest price if slow growth and cash generation persist.

In plain English: Strategic Education runs Strayer University and other post-secondary and job-skills programs, mostly online and on campus. The business looks financially solid with little debt and steady profits, but it grows slowly and does not earn high profits on each dollar invested. At the 2026-10-13 close of $81.89, the price looks somewhat below what its earnings, book value, and cash flow suggest, though not a screaming bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer