📊 STRA Key Takeaways
Is Strategic Education, Inc. (STRA) a Good Investment?
Strategic Education demonstrates strong financial fundamentals with zero long-term debt, robust free cash flow generation ($153.9M, 12.1% FCF margin), and profit growth (12.4% NI growth) accelerating faster than revenue growth (4%), indicating operational leverage. However, modest revenue growth and below-average returns on capital (ROE 7.7%, ROA 6.2%) suggest a mature business with limited expansion tailwinds rather than a growth story.
Why Buy Strategic Education, Inc. Stock? STRA Key Strengths
- Zero long-term debt provides exceptional financial flexibility and eliminates refinancing risk
- Strong free cash flow generation ($153.9M) with healthy 12.1% FCF margin demonstrates business quality
- Net income growth of 12.4% outpacing revenue growth of 4% indicates margin expansion and operating leverage
- Solid balance sheet with $140.8M cash, 1.27x current ratio, and liabilities only 19.6% of assets
STRA Stock Risks: Strategic Education, Inc. Investment Risks
- Modest 4% revenue growth suggests market saturation or limited organic expansion in educational services sector
- Low returns on capital (ROE 7.7%, ROA 6.2%) indicate suboptimal capital deployment efficiency
- Educational services sector sensitivity to economic cycles, regulatory changes, and enrollment fluctuations
- Relatively tight current ratio of 1.27x provides limited liquidity cushion despite strong cash generation
Key Metrics to Watch
- Revenue growth trajectory and organic vs. inorganic drivers
- Operating margin and net margin sustainability through economic cycles
- Free cash flow conversion rate relative to net income
- Return on equity trends and capital deployment efficiency
Strategic Education, Inc. (STRA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strategic Education, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $273.6M | $12.2M | $0.51 |
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 |
|---|---|---|---|
| Mar 20, 2026 | 4 | xslF345X06/form4-03202026_080336.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/form4-03162026_090304.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/form4-03162026_090348.xml | View → |
| Mar 11, 2026 | DEF 14A | tm261402-1_def14a.htm | View → |
| Mar 3, 2026 | 4 | xslF345X05/form4-03042026_120321.xml | View → |
❓ Frequently Asked Questions about STRA
What is the AI rating for STRA?
Strategic Education, Inc. (STRA) has an AI rating of BUY with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STRA's key strengths?
Claude: Zero long-term debt provides exceptional financial flexibility and eliminates refinancing risk. Strong free cash flow generation ($153.9M) with healthy 12.1% FCF margin demonstrates business quality.
What are the risks of investing in STRA?
Claude: Modest 4% revenue growth suggests market saturation or limited organic expansion in educational services sector. Low returns on capital (ROE 7.7%, ROA 6.2%) indicate suboptimal capital deployment efficiency.
What is STRA's revenue and growth?
Strategic Education, Inc. reported revenue of $1.3B.
Does STRA pay dividends?
Strategic Education, Inc. pays dividends, with $57.5M 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 $5.41.
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 rating reflects both perspectives for balanced insights.
Is STRA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Strategic Education, Inc. has a BUY rating with 75% 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 7.7% (sector avg: 16%), net margin of 10.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy STRA stock in 2026?
Our dual AI analysis gives Strategic Education, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STRA's free cash flow?
Strategic Education, Inc.'s operating cash flow is $198.2M, with capital expenditures of $44.3M. FCF margin is 12.1%.
How does STRA compare to other Services stocks?
Vs Services sector averages: Net margin 10.0% (avg: 10%), ROE 7.7% (avg: 16%), current ratio 1.27 (avg: 1.5).