Strategic Education Return On Equity vs. Profit Margin
| STRA Stock | USD 99.52 0.12 0.12% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.04223313 | Current Value 0.0401 | Quarterly Volatility 0.70716114 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.62 | 0.4392 |
|
|
For Strategic Education profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Strategic Education to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Strategic Education utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Strategic Education's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Strategic Education over time as well as its relative position and ranking within its peers.
Strategic |
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Strategic Education. If investors know Strategic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Strategic Education listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.494 | Dividend Share 2.4 | Earnings Share 5.25 | Revenue Per Share 51.748 | Quarterly Revenue Growth 0.07 |
The market value of Strategic Education is measured differently than its book value, which is the value of Strategic that is recorded on the company's balance sheet. Investors also form their own opinion of Strategic Education's value that differs from its market value or its book value, called intrinsic value, which is Strategic Education's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Strategic Education's market value can be influenced by many factors that don't directly affect Strategic Education's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Strategic Education's value and its price as these two are different measures arrived at by different means. Investors typically determine if Strategic Education is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Strategic Education's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Strategic Education Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Strategic Education's current stock value. Our valuation model uses many indicators to compare Strategic Education value to that of its competitors to determine the firm's financial worth. Strategic Education is rated second in return on equity category among its peers. It also is rated second in profit margin category among its peers fabricating about 1.37 of Profit Margin per Return On Equity. At present, Strategic Education's Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Strategic Education's earnings, one of the primary drivers of an investment's value.Strategic Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Strategic Education |
| = | 0.0764 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Strategic Education |
| = | 0.10 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Strategic Profit Margin Comparison
Strategic Education is currently under evaluation in profit margin category among its peers.
Strategic Education Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Strategic Education, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Strategic Education will eventually generate negative long term returns. The profitability progress is the general direction of Strategic Education's change in net profit over the period of time. It can combine multiple indicators of Strategic Education, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -34.2 M | -32.5 M | |
| Operating Income | 95.3 M | 88.7 M | |
| Income Before Tax | 100.7 M | 84.8 M | |
| Total Other Income Expense Net | 5.4 M | 5.7 M | |
| Net Income | 69.8 M | 52.9 M | |
| Income Tax Expense | 30.9 M | 31.8 M | |
| Net Income Applicable To Common Shares | 53.7 M | 57 M | |
| Net Income From Continuing Ops | 49 M | 43.7 M | |
| Non Operating Income Net Other | 3.1 M | 2.5 M | |
| Interest Income | 130.5 K | 124 K | |
| Net Interest Income | -577.8 K | -606.7 K | |
| Change To Netincome | 13.2 M | 7.7 M | |
| Net Income Per Share | 2.98 | 2.71 | |
| Income Quality | 1.68 | 1.20 | |
| Net Income Per E B T | 0.69 | 0.50 |
Strategic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Strategic Education. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Strategic Education position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Strategic Education's important profitability drivers and their relationship over time.
Use Strategic Education in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Strategic Education position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Strategic Education will appreciate offsetting losses from the drop in the long position's value.Strategic Education Pair Trading
Strategic Education Pair Trading Analysis
The ability to find closely correlated positions to Strategic Education could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Strategic Education when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Strategic Education - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Strategic Education to buy it.
The correlation of Strategic Education is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Strategic Education moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Strategic Education moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Strategic Education can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Strategic Education position
In addition to having Strategic Education in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Hotels Thematic Idea Now
Hotels
Hotels, inns, motels, and other companies providing lodging and hospitality services. The Hotels theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Hotels Theme or any other thematic opportunities.
| View All Next | Launch |
Check out World Market Map. For information on how to trade Strategic Stock refer to our How to Trade Strategic Stock guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
To fully project Strategic Education's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Strategic Education at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Strategic Education's income statement, its balance sheet, and the statement of cash flows.