📊 STRA Key Takeaways
Is Strategic Education, Inc. (STRA) a Good Investment?
Strategic Education demonstrates fortress balance sheet fundamentals with zero debt, strong free cash flow generation (25.3% FCF margin), and accelerating net income growth (12.4% YoY) outpacing revenue growth (4.0%), indicating operational leverage. However, critically weak returns on equity (2.0%) and assets (1.6%) suggest significant underutilization of the substantial asset base, warranting close monitoring of capital efficiency improvements.
Strategic Education, Inc. Key Strengths (STRA)
- Zero long-term debt with 1.6B stockholders equity provides exceptional financial flexibility and downside protection
- Free cash flow of 77.3M (25.3% FCF margin) demonstrates strong cash generation relative to income
- Net income and EPS growth (12.4% and 15.8% respectively) accelerating beyond revenue growth (4.0%) shows operational leverage and improving unit economics
STRA Stock Risks: Strategic Education, Inc. Investment Risks
- Return on Equity of 2.0% and ROA of 1.6% are critically low, indicating poor capital efficiency and potential asset underutilization despite profitability
- Modest revenue growth of 4.0% YoY suggests limited organic expansion and competitive pressures in educational services sector
- Educational services sector exposure to regulatory changes, demographic shifts, and online learning competition may pressure future growth
Key Metrics to Watch
- Return on Equity trend - critical to demonstrate capital deployment efficiency improvement
- Revenue growth acceleration - essential to validate whether 4.0% is cyclical or structural headwind
- Free cash flow sustainability and capital allocation decisions - monitor how excess cash is deployed
Strategic Education, Inc. (STRA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 25.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
STRA Profit Margin, ROE & Profitability Analysis
STRA vs Services Sector: How Strategic Education, Inc. Compares
How Strategic Education, Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Strategic Education, Inc. Stock Overvalued? STRA Valuation Analysis 2026
Based on fundamental analysis, Strategic Education, Inc. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Strategic Education, Inc. Balance Sheet: STRA Debt, Cash & Liquidity
STRA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Strategic Education, Inc.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.91 reflects profitable operations.
STRA Revenue Growth, EPS Growth & YoY Performance
STRA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $303.6M | $29.7M | $1.24 |
| Q3 2025 | $306.0M | $26.6M | $1.15 |
| Q2 2025 | $312.3M | $29.9M | $1.24 |
| Q1 2025 | $290.3M | $29.7M | $1.23 |
| Q3 2024 | $285.9M | $18.5M | $0.77 |
| Q2 2024 | $287.7M | $12.2M | $0.51 |
| Q1 2024 | $256.6M | -$2.0M | $-0.09 |
| Q3 2023 | $263.1M | $6.1M | $0.25 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Strategic Education, Inc. Dividends, Buybacks & Capital Allocation
STRA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Strategic Education, Inc. (CIK: 0001013934)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 5, 2026 | 4 | xslF345X06/form4-05052026_040503.xml | View → |
| Apr 24, 2026 | 4 | xslF345X06/form4-04252026_120414.xml | View → |
| Apr 24, 2026 | 4 | xslF345X06/form4-04242026_080415.xml | View → |
| Apr 24, 2026 | 4 | xslF345X06/form4-04252026_120413.xml | View → |
| Apr 24, 2026 | 4 | xslF345X06/form4-04242026_080413.xml | View → |
❓ Frequently Asked Questions about STRA
What is the AI rating for STRA?
Strategic Education, Inc. (STRA) has an AI grade of A with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STRA's key strengths?
Claude: Zero long-term debt with 1.6B stockholders equity provides exceptional financial flexibility and downside protection. Free cash flow of 77.3M (25.3% FCF margin) demonstrates strong cash generation relative to income.
What are the risks of investing in STRA?
Claude: Return on Equity of 2.0% and ROA of 1.6% are critically low, indicating poor capital efficiency and potential asset underutilization despite profitability. Modest revenue growth of 4.0% YoY suggests limited organic expansion and competitive pressures in educational services sector.
What is STRA's revenue and growth?
Strategic Education, Inc. reported revenue of $305.9M.
Does STRA pay dividends?
Strategic Education, Inc. pays dividends, with $13.6M distributed to shareholders in the trailing twelve months.
Where can I find STRA SEC filings?
Official SEC filings for Strategic Education, Inc. (CIK: 0001013934) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STRA's EPS?
Strategic Education, Inc. has a diluted EPS of $1.48.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STRA's fundamental grade?
Based on our AI fundamental analysis in May 2026, Strategic Education, Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is STRA stock overvalued or undervalued?
Valuation metrics for STRA: ROE of 2.0% (sector avg: 16%), net margin of 10.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is STRA's AI grade for 2026?
Our dual AI analysis gives Strategic Education, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STRA's free cash flow?
Strategic Education, Inc.'s operating cash flow is $87.4M, with capital expenditures of $10.1M. FCF margin is 25.3%.
How does STRA compare to other Services stocks?
Vs Services sector averages: Net margin 10.7% (avg: 10%), ROE 2.0% (avg: 16%), current ratio 1.16 (avg: 1.5).