Strategic Education Inc logo

Strategic Education Inc(STRA)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$82.39
10/09/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for STRA

10/09/2026: STRA (1-star) is currently NOT-A-BUY. Pass it for now.

Strategic Education Inc is a provider of post-secondary education through its brands, Strayer and Capella, while expanding into corporate-aligned workforce development. The company benefits from established university brands, a commitment to consistent dividends, and a transition toward a more diversified B2B model through its Workforce Edge platform. However, the business faces significant challenges, including enrollment headwinds, high competition from low-cost institutions, and regulatory risks associated with Title IV funding. For investors, the stock offers a stable, value-oriented profile with potential upside tied to corporate training growth. Monitoring enrollment trends and federal policy updates is essential for evaluating long-term performance.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitGrowth is moderate and tied to the mature adult education market.
Momentum investorWeak fitThe stock lacks sustained high-growth momentum relative to broader market indices.
Value investorStrong fitThe company often trades at valuations that may appeal to value-oriented investors seeking stable cash flows.
Dividend investorStrong fitConsistent dividend payments make this an attractive option for income-focused portfolios.
Low-risk investorMixed fitRegulatory risks inherent in for-profit education introduce volatility that may concern low-risk investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock is subject to industry-specific regulatory sentiment shifts.
Valuation riskLowValuations are generally tethered to stable earnings rather than speculative growth.
Competition risk (Educational institutions)HighIntense competition from low-cost public entities pressures pricing and enrollment.
Business qualityMediumThe business has established, long-running university brands.
Dividend incomeMedium / highThe dividend is reliable but tied to industry profitability.
Execution riskMediumSuccessfully transitioning to a B2B-led growth model requires consistent execution.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -48.2%
Avg. Invested days 32
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/09/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
STRA receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
STRA has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+12.4%) and solid cash generation (FCF margin 12.1%) are partially offset by moderate revenue growth (+4.0%), soft profitability (net margin 10.0%), modest insider ownership of 3.76%.

Financial Health Rating

★★★★★
STRA's financial health is supported by solid cash strength, including free-cash-flow generation (12.1% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is STRA's strongest growth driver at +19.6% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+4.0%, moderate) and earnings growth (+12.4%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 109.7% and approximately 95.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 3.76% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 17.11%
Vanguard Portfolio Management, LLC 6.58%
Dimensional Fund Advisors, Inc. 6.56%
Bank of Montreal 5.66%
BMO Capital Markets Corp. 5.66%

Unit Economics (Per $1K Revenue)

★★★★★
STRA generates approximately $490 of gross profit, $155 of operating income, and $121 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins and solid cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 28.63%

Quantitative Style Profile

★★★★★
STRA has a liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.83B USD
Price to earnings Ratio 13.75
1Y Target Price 96.67
Price to earnings Ratio 13.75
1Y Target Price 96.67
Volume (30-day avg) 303.1K shares
Beta 0.47
52 Weeks Range 68.66 - 89.07
Updated Date 10/10/2026
52 Weeks Range 68.66 - 89.07
Updated Date 10/10/2026
Dividends yield (FY) 2.91%
Basic EPS (TTM) 5.99

How Company Makes Money

Business areaWhat it includesRetail investor read
Academic ServicesTuition and fees from degree-granting programs at Strayer and Capella universities.Most revenue comes from recurring tuition payments from adult students pursuing degrees.
Workforce SolutionsCorporate partnerships and technology bootcamp fees.This is the company's growth-oriented business segment focusing on B2B corporate training contracts.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 13.75
Forward PE 9.31
Enterprise Value 1.68B
Price to Sales(TTM) 1.42
Enterprise Value 1.68B
Price to Sales(TTM) 1.42
Enterprise Value to Revenue 1.3
Enterprise Value to EBITDA 6.71
Shares Outstanding 22.21M
Shares Floating 21.10M
Shares Outstanding 22.21M
Shares Floating 21.10M
Percent Insiders 3.76
Percent Institutions 109.71

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.