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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1496
Positioning
Market Dominance
Services
Personal Services
$2.8B
James J. Rhyu
Stride, Inc. provides proprietary and third-party online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade (K-12) in the United States and internationally. The company also provides career learning products and services that are focused on developing skills to enter in industries, including information technology, health care, and business.
Headcount
7.5K
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = LRN ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$LRN Stride, Inc. | 53 | 63 | 73 | 33 | 10.5x | 8.7x | 21.7% | 14.6% | 40.4% | 18.6% | 14.0% | 21.2% | 0.0% | 27.0x | $2.8B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Stride, Inc. (LRN) receives a "Hold" rating with a composite score of 53.3/100. It ranks #1496 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
HERNDON, Virginia
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for LRN.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 63 | 78 | -15DRAG |
| MOMENTUM | 33 | 28 | +5NEUTRAL |
| VALUATION | 73 | 83 | -10DRAG |
| INVESTMENT | 29 | 29 | 0NEUTRAL |
| STABILITY | 49 | 50 | -1NEUTRAL |
| SHORT INT | 49 | 49 | 0NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 21.7% (sector 5.7%)
GM 40% vs sector 65%, OM 19% vs sector 5%
Capital turnover N/A
Rev growth 21%, 11yr history
Interest coverage N/A, Net debt/EBITDA -0.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Stride, Inc. (LRN) as a Hold with a composite score of 53.3/100 at a current price of $82.90. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Stride, Inc. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 53.3/100 places it at rank #1496 in our full universe.
Narrow
Low
Exemplary
Undervalued
Gross margins of 40% signal strong pricing power.
Returns on equity of 21.7% exceed cost of capital.
Value factor score of 73 suggests attractive pricing.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Stride, Inc. represents a hold based on multi-factor quantitative performance.
Our model assigns Stride, Inc. a Hold rating, with a composite score of 53.3/100 and 3 out of 5 stars. Ranked #1496 of 7,333 stocks, LRN presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 63/100, LRN shows adequate but unremarkable business quality. The company reports a return on equity of 21.7% (sector avg: 5.7%), gross margins of 40.4% (sector avg: 64.6%), net margins of 14.0% (sector avg: 2.8%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
LRN carries a solid value score of 73/100, pointing to an attractively priced stock relative to peers. Key valuation metrics include a P/E ratio of 10.46x, an EV/EBITDA of 8.74x, a P/B ratio of 2.27x. This score suggests reasonable compensation for the risks involved, with potential upside if the market recognizes the stock's underlying worth.
Stride, Inc.'s investment score of 29/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 21.2% vs. a sector average of 8.6% and a return on assets of 14.6% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
LRN is currently showing below-average momentum at 33/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 21.2% year-over-year, while a beta of 0.51 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 49/100, LRN exhibits average financial resilience. Key stability metrics include a beta of 0.51 and a debt-to-equity ratio of 27.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 49/100 for LRN suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 27.00x). With a $2.8B market cap (mid-cap), Stride, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Stride, Inc. is a mid-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #1496 of 7,333 overall (80th percentile). Key comparisons include ROE of 21.7% exceeding the 5.7% sector median and operating margins of 18.6% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While LRN currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Key factor gap
Value (73) vs Investment (29) — closing this gap could shift the rating.
EV/EBITDA 25% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 278% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 37% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Stride (LRN) stock surged 14.25% after reporting fiscal Q2 2026 earnings that exceeded Wall Street expectations. Revenue grew 7.5% to $631.3 million with total enrollments up 7.8% to 248,500, driven by a 17.6% surge in career learning. Adjusted EPS increased 5.5% to $2.50, beating consensus estimates of $2.01. The company projects full-year revenue growth of ~5% and operating income growth of ~6%.
Trump officials are turning up the pressure on colleges to ensure their students repay their federal student loans or risk losing their financial aid.
Can LRN sustain enrollment stability as it caps growth despite near-record applications and normalized withdrawals in second quarter of fiscal 2026?
Stride (LRN) shares have rebounded over the past month after the company reported better-than-expected second quarter fiscal 2026 results, addressed earlier platform issues, and highlighted record Career Learning enrollments. See our latest analysis for Stride. At a share price of $84.89, Stride has seen strong recent momentum, with a 30 day share price return of 21.78% and a 90 day share price return of 31.47%, even though the 1 year total shareholder return is a 39.45% decline and the 5...