Strategic Education, Inc. (STRA) AI Stock Analysis

Strategic Education, Inc. provides comprehensive education services through campus-based and online post-secondary education programs across three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. In the U.S., it operates Strayer University, offering undergraduate and graduate degrees via physical campuses in the eastern United States and online, as well as an online executive MBA through the Jack Welch Management Institute. It also delivers non-degree web and mobile application development courses through Hackbright Academy and Devmountain. Additionally, the company runs Capella University, an online institution serving working adults, and Torrens University in Australia.

Between FY2021 and FY2025, Strategic Education increased annual revenue from $1.13B to $1.27B, reflecting a 5-year revenue CAGR of 4.3%. Operating margin expanded from 6.5% in FY2021 to 15.5% in FY2025, while net income grew from $55.1M to $126.6M. Diluted earnings per share rose from $4.82 to $6.19 over the same period. For the latest quarter ended June 30, 2026, quarterly revenue increased 4.9% year-over-year, while quarterly earnings grew 24.8%. Trailing twelve month revenue reached $1.29B with a profit margin of 10.5% and an operating margin of 15.7%.

As of June 30, 2026, Strategic Education held $128.8M in cash and short-term investments against total debt of $106.7M, resulting in net cash of $22.0M. Total assets stood at $2.07B and shareholders' equity was $1.63B, supporting a current ratio of 1.10 and a debt-to-equity ratio of 0.07. In FY2025, operating cash flow was $198.2M and free cash flow reached $153.9M. Cash use in FY2025 included $44.3M in capital expenditures, $138.9M in share buybacks, and $57.5M in dividends paid.

With a market capitalization of $1.81B and enterprise value of $1.68B, Strategic Education trades at a trailing P/E of 13.6x and a forward P/E of 9.3x, both below the medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its EV to EBITDA ratio of 6.7x is lower than the peer median of 11.7x, while its price-to-sales ratio of 1.4x sits above the peer median of 0.7x. Over the past year, the stock returned 5.8%, trailing the 16.8% return of the S&P 500 (SPY). Over five years, the stock returned 32.6% compared to 83.0% for the S&P 500.

Strategic Education pays a quarterly dividend with a forward annualized payout of $2.40 per share, translating to a dividend yield of 2.95% at its last close of $81.33. The payout ratio stands at 36.7%. The company has paid dividends for 10 consecutive years, while its 5-year annualized dividend growth is 0.0%. Its last ex-dividend date was September 4, 2026.

Wall Street analysts hold 1 Strong Buy, 1 Buy, and 1 Hold rating on Strategic Education, with no Sell or Strong Sell ratings. The mean price target is $96.67, which is 18.9% above the last closing price of $81.33. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.30B and EPS of $7.21, representing estimated EPS growth of 16.6%. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Strategic Education, Inc. (STRA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STRA income statement, STRA balance sheet, STRA key metrics, STRA analyst forecast, STRA chart. See the STRA stock overview for the latest quote and news.