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Stride Inc (LRN)



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Upturn Advisory Summary
03/27/2025: LRN (2-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -23.3% | Avg. Invested days 42 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.62B USD | Price to earnings Ratio 21.66 | 1Y Target Price 135.25 |
Price to earnings Ratio 21.66 | 1Y Target Price 135.25 | ||
Volume (30-day avg) 729337 | Beta 0.46 | 52 Weeks Range 56.17 - 145.00 | Updated Date 04/1/2025 |
52 Weeks Range 56.17 - 145.00 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 5.96 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 12.3% | Operating Margin (TTM) 5.38% |
Management Effectiveness
Return on Assets (TTM) 10.85% | Return on Equity (TTM) 22.95% |
Valuation
Trailing PE 21.66 | Forward PE 17.57 | Enterprise Value 5466496285 | Price to Sales(TTM) 2.56 |
Enterprise Value 5466496285 | Price to Sales(TTM) 2.56 | ||
Enterprise Value to Revenue 2.49 | Enterprise Value to EBITDA 11.47 | Shares Outstanding 43546600 | Shares Floating 41489480 |
Shares Outstanding 43546600 | Shares Floating 41489480 | ||
Percent Insiders 2.98 | Percent Institutions 114.66 |
Analyst Ratings
Rating 4 | Target Price 105 | Buy 2 | Strong Buy 2 |
Buy 2 | Strong Buy 2 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Stride Inc
Company Overview
History and Background
Stride, Inc., formerly K12 Inc., was founded in 2000. It has grown to become a leading provider of online and blended learning solutions, catering to students from kindergarten through 12th grade. It has expanded through acquisitions and organic growth, adapting to the changing landscape of education technology.
Core Business Areas
- General Education: Offers online curriculum and learning solutions for K-12 students in public and private schools. Includes virtual schools, blended learning programs, and curriculum products. Caters to diverse learning needs, including advanced placement and credit recovery.
- Career Learning: Provides career readiness education, including courses and programs in high-demand fields like IT, healthcare, and business. Programs are designed to prepare students for certifications and entry-level positions.
Leadership and Structure
The leadership team consists of experienced executives in education and technology. The organizational structure includes divisions for curriculum development, technology, school operations, and sales/marketing. CEO is James Rhyu.
Top Products and Market Share
Key Offerings
- Stride K12-powered Schools: Online public and private schools that use Stride's curriculum and technology platform. Estimated users are hundreds of thousands of students enrolled. Market share is substantial, but not dominant, in the K-12 online education market. Competitors include Connections Academy (Pearson), Primavera Online High School and other smaller virtual school providers.
- FuelEd: A curriculum provider serving individual students and schools. Market share is estimated based on revenue contribution, which is significant to Stride. Competitors include Pearson Education, Houghton Mifflin Harcourt, and McGraw-Hill Education.
- Career Prep Programs: Career-focused online courses and programs. Difficult to estimate precise market share due to the fragmented nature of the career education market, but growing rapidly. Competitors include Coursera, Udemy, and edX, and specific career prep providers.
Market Dynamics
Industry Overview
The online education industry is experiencing significant growth, driven by increasing demand for flexible learning options, technological advancements, and the need for personalized education. Growth has slowed since the pandemic, but continues at a more moderate pace.
Positioning
Stride Inc. is positioned as a leading provider of comprehensive online learning solutions for K-12 students and career readiness. Competitive advantages include its experience in online education, its comprehensive curriculum library, and its technology platform.
Total Addressable Market (TAM)
The total addressable market (TAM) for online education is estimated to be in the hundreds of billions of dollars globally. Stride Inc. is well-positioned to capture a significant share of this market, focusing on specific segments such as K-12 online schools and career readiness programs.
Upturn SWOT Analysis
Strengths
- Strong brand recognition in the online education market
- Comprehensive curriculum library
- Experienced management team
- Established technology platform
- Partnerships with school districts
Weaknesses
- Dependence on enrollment rates
- Competition from other online education providers
- Regulatory scrutiny
- Marketing and student acquisition costs
Opportunities
- Expanding into new geographic markets
- Developing new curriculum offerings
- Acquiring complementary businesses
- Increasing partnerships with school districts
- Growth in demand for online education
Threats
- Increased competition
- Changes in government regulations
- Economic downturn
- Technological disruptions
- Negative perceptions of online education
Competitors and Market Share
Key Competitors
- LRN
- APOG
- TAL
Competitive Landscape
Stride Inc. competes with other online education providers, traditional brick-and-mortar schools, and companies offering career readiness programs. Stride's advantages include its comprehensive curriculum, established technology platform, and experience in online education. Disadvantages include dependence on enrollment rates and competition from larger players.
Major Acquisitions
Techie Factory
- Year: 2022
- Acquisition Price (USD millions): 10
- Strategic Rationale: Increased STEM course options to provide students with hands-on skills.
Growth Trajectory and Initiatives
Historical Growth: Stride Inc. has experienced strong historical growth, driven by increasing demand for online education and strategic acquisitions.
Future Projections: Analysts project continued growth for Stride Inc., driven by its focus on K-12 online education and career readiness programs. Future growth is expected in the 5-10% range.
Recent Initiatives: Recent strategic initiatives include expanding career prep offerings, partnering with more school districts, and investing in technology infrastructure.
Summary
Stride Inc. is a well-positioned player in the online education market with a comprehensive product suite and experience. It demonstrates moderate growth and strong financial stability. Competition and regulatory challenges, including enrollment rates and marketing expenses need to be watched. Strong initiatives in Career learning will help it meet future challenges.
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Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Industry Reports
- Analyst Estimates
- Company Website
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Stride Inc
Exchange NYSE | Headquaters Reston, VA, United States | ||
IPO Launch date 2007-12-13 | Chair of the Board & CEO Mr. James J. Rhyu | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 7800 | Website https://www.stridelearning.com |
Full time employees 7800 | Website https://www.stridelearning.com |
Stride, Inc., a technology-based education service company, engages in the provision of proprietary and third-party online curriculum, software systems, and educational services in the United States and internationally. Its technology-based products and services enable clients to attract, enroll, educate, track progress, support, and facilitate individualized learning for students. The company offers integrated package of systems, services, products, and professional expertise to support a virtual or blended public school; software and services to schools and school districts; individual online courses and supplemental educational products; and products and services for the general education market focused on subjects, including math, English, science, and history for kindergarten through twelfth grade students. It also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business; and operates tuition-based private schools. In addition, the company offers focused post-secondary career learning programs, which include skills training for software engineering, healthcare, and medical fields to adult learners under Galvanize, Tech Elevator, and MedCerts brand names, as well as provides staffing and talent development services to employers. It serves public and private schools, school districts, charter boards, consumers, employers, and government agencies. The company was formerly known as K12 Inc. and changed its name to Stride, Inc. in December 2020. Stride, Inc. was incorporated in 1999 and is headquartered in Reston, Virginia.
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