Strategic Education

STRA

Education & Training Services · Consumer Defensive

Price

$83.42

+1.04 (+1.26%)

Market Cap

$1.90B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Good

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

Dividends

Mixed

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Share count falling — buybacks

−5.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 24.1M (2021) → 22.8M (2025)

Winston Score History

The full picture

Strategic Education, Inc. runs for-profit colleges and online education programs in the United States and Australia. Its main brands include Strayer University and Capella University, which offer bachelor's, master's, and doctoral degrees mostly to working adults looking to advance their careers. The company focuses heavily on business, technology, and healthcare-related fields.

Strategic Education earns money primarily through tuition paid by students, often funded through federal financial aid programs like Pell Grants and student loans. It operates mainly in the U.S., with a smaller presence in Australia through its Torrens University brand, and generates roughly $1 billion in annual revenue. Its competitive position relies on flexible online scheduling that appeals to adult learners balancing jobs and family, but the company faces ongoing risk from regulatory scrutiny of for-profit colleges and potential changes to federal student aid rules, which could significantly affect enrollment and revenue.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+23.4% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

6.0%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$129M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Strategic Education is growing revenue at 5% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

47.3%

Healthy — 47.3% gross margin

Profit after running costs

Operating Margin

15.0%

Healthy — 15.0% operating margin

Return on the money invested

ROCE

10.6%

Below par — 10.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.5%

Slow sales growth (+3.5% YoY)

Profit growth

EPS YoY

+24.2%

Earnings growing fast (+24.2% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

170%

Turns 170% of profit into real cash

Spare cash per sale

FCF Margin

14.1%

Converts sales into free cash efficiently (14.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.07

Conservative — low debt load (0.07)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

13.6x

Attractive valuation — P/E 13.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+1.9

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

2.87%

Moderate income — 2.87% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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