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Upturn AI SWOT - About
STRA 
Strategic Education Inc (STRA)
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Upturn Advisory Summary
04/01/2025: STRA (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -11.56% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.09B USD | Price to earnings Ratio 18.16 | 1Y Target Price 112.33 |
Price to earnings Ratio 18.16 | 1Y Target Price 112.33 | ||
Volume (30-day avg) 184059 | Beta 0.6 | 52 Weeks Range 77.87 - 120.58 | Updated Date 04/1/2025 |
52 Weeks Range 77.87 - 120.58 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.86% | Basic EPS (TTM) 4.67 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 9.24% | Operating Margin (TTM) 12.98% |
Management Effectiveness
Return on Assets (TTM) 4.71% | Return on Equity (TTM) 6.8% |
Valuation
Trailing PE 18.16 | Forward PE 14.68 | Enterprise Value 2011168372 | Price to Sales(TTM) 1.71 |
Enterprise Value 2011168372 | Price to Sales(TTM) 1.71 | ||
Enterprise Value to Revenue 1.65 | Enterprise Value to EBITDA 9.97 | Shares Outstanding 24654200 | Shares Floating 23411317 |
Shares Outstanding 24654200 | Shares Floating 23411317 | ||
Percent Insiders 3.28 | Percent Institutions 92.23 |
Analyst Ratings
Rating 4.33 | Target Price 123 | Buy 2 | Strong Buy 1 |
Buy 2 | Strong Buy 1 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Strategic Education Inc
Company Overview
History and Background
Strategic Education, Inc. (STRA) was formed in 2010 through the merger of Strayer Education, Inc. (founded in 1892) and Capella Education Company (founded in 1993). It has grown through acquisitions and organic expansion, focusing on career-oriented education.
Core Business Areas
- U.S. Higher Education: Includes Strayer University and Capella University, offering degree programs at the undergraduate and graduate levels, primarily online.
- Education Technology & Services: Providing educational technology and services to other institutions and employers.
- Australia/New Zealand (ANZ): Operates Torrens University Australia and Think Education Group offering higher education programs.
Leadership and Structure
Robert Silberman is the Executive Chairman. Karl McDonnell is the President and CEO. The company has a typical corporate structure with a board of directors and various executive leadership positions overseeing different business units.
Top Products and Market Share
Key Offerings
- Strayer University: Offers career-focused degree programs online and on-ground. Market share is difficult to pinpoint exactly for a single institution, but it is a significant player in the for-profit education sector. Competitors include University of Phoenix (Apollo Education Group), Grand Canyon Education, and other online universities.
- Capella University: Focuses on online graduate and doctoral degrees. Market share data is not readily available, but Capella is a recognized brand in online graduate education. Competitors include Walden University, Western Governors University, and other online universities offering graduate programs.
- Torrens University Australia: Offers a wide range of undergraduate and postgraduate courses across various disciplines. Revenue is derived from student fees and government funding.
Market Dynamics
Industry Overview
The higher education industry is evolving with increasing demand for online learning, driven by flexibility and accessibility. The industry faces challenges related to regulation, accreditation, and competition from traditional universities expanding online offerings.
Positioning
Strategic Education Inc. is positioned as a leading provider of career-oriented online education. Its competitive advantage lies in its established brands, online learning platform, and focus on programs with strong employment outcomes.
Total Addressable Market (TAM)
The global online education market is expected to reach hundreds of billions of dollars. Strategic Education Inc. is well-positioned to capture a portion of this market through its diverse offerings and established online presence.
Upturn SWOT Analysis
Strengths
- Recognized brands (Strayer and Capella)
- Established online learning platform
- Career-focused programs
- Strong financial position
- Experienced leadership team
Weaknesses
- Dependence on regulatory environment
- Reputational risk associated with for-profit education sector
- High marketing costs
- Student loan default rates
Opportunities
- Expansion into new geographic markets
- Development of new programs aligned with industry needs
- Partnerships with employers to provide training and education
- Acquisitions of complementary businesses
- Increased demand for online learning
Threats
- Increased competition from traditional universities and other online providers
- Changes in government regulations and funding
- Economic downturn affecting student enrollment
- Negative publicity regarding student loan debt and employment outcomes
- Technological disruptions
Competitors and Market Share
Key Competitors
- GHC (Grand Canyon Education)
- LRN (Stride Inc.)
- CECO (Career Education Corporation)
Competitive Landscape
Strategic Education competes with a wide range of institutions, including traditional universities offering online programs, other for-profit education companies, and specialized training providers. Its advantages include its established brands, online learning platform, and career-focused programs. Disadvantages include reputational risk and regulatory scrutiny.
Major Acquisitions
Australia and New Zealand University operations
- Year: 2018
- Acquisition Price (USD millions): 635
- Strategic Rationale: Expanded Strategic Education's international presence and diversified its revenue streams. Provided access to the Australian and New Zealand higher education markets.
Growth Trajectory and Initiatives
Historical Growth: Growth has been achieved through acquisitions and organic expansion of online programs.
Future Projections: Analyst estimates vary, but generally project continued growth in revenue and earnings, driven by demand for online education.
Recent Initiatives: Focus on developing new programs aligned with industry needs, expanding partnerships with employers, and investing in technology.
Summary
Strategic Education (STRA) operates in the evolving online education market, leveraging recognized brands like Strayer and Capella. While its strong online platform and career-focused programs are strengths, dependence on the regulatory environment and reputational risks persist. Growth opportunities exist through market expansion and partnerships, but increased competition and potential economic downturns pose threats. STRA's future performance hinges on its ability to navigate these challenges and capitalize on the growing demand for flexible, career-oriented education.
Similar Companies
- GHC
- LRN
- CECO
Sources and Disclaimers
Data Sources:
- Company website
- SEC filings (10-K, 10-Q)
- Industry reports
- Analyst reports
- Various Market Data sites
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary depending on the source. Financial data is based on publicly available information and may be subject to change.
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 Strategic Education Inc
Exchange NASDAQ | Headquaters Herndon, VA, United States | ||
IPO Launch date 1996-07-25 | President, CEO & Director Mr. Karl McDonnell | ||
Sector Consumer Defensive | Industry Education & Training Services | Full time employees 3801 | |
Full time employees 3801 | |||
Strategic Education, Inc. provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute. In addition, the company operates Capella University that provides post-secondary education; Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses primarily in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media artificial intelligence, and creative advertising in New Zealand. It offers Workforce Edge, a platform which provides employers a full-service education benefits administration solution; and Sophia Learning, which offers low-cost online general education-level courses. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.
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