STRA
Consumer DefensiveStrategic Education, Inc. · Education & Training Services · $2B
What is Strategic Education, Inc.?
Strategic Education, Inc. is a post-secondary education company serving working adults across the United States, Australia, and New Zealand. It combines traditional campus-based learning with a broad online delivery model spanning degree and non-degree programs.
Strategic Education generates revenue by enrolling students in accredited degree programs and vocational training courses. Its U.S. operations run through Strayer University and Capella University, targeting working adults seeking undergraduate, graduate, and doctoral credentials. Its Education Technology Services segment supports employer-sponsored education benefits. Internationally, Torrens University and Think Education serve students across Australia and New Zealand through campus and online formats.
Incorporated in 1996 and headquartered in Herndon, Virginia, Strategic Education has grown through acquisitions into a multi-brand education group.
- Strayer University undergraduate and graduate degree programs
- Capella University online bachelor's, master's, and doctoral degrees
- Jack Welch Management Institute executive MBA
- Hackbright Academy and Devmountain coding and development courses
- Torrens University and Think Education programs in Australia and New Zealand
Is STRA a Good Stock to Buy?
UQS Score rates STRA as Good overall, reflecting a balanced but nuanced profile across its five quality pillars.
STRA's most favorable pillar is Risk, suggesting the business carries a relatively measured risk profile compared to many peers in the for-profit education space. Valuation is rated Attractive, meaning the stock appears reasonably priced relative to its fundamentals — a meaningful consideration for value-oriented investors.
Growth is the weakest pillar, indicating that near-term expansion momentum is limited. Quality and Moat both sit at Neutral, pointing to a business without a pronounced competitive fortress or standout financial efficiency.
See the exact pillar breakdown and full financial metrics by signing up for a Pro membership at UQS Score. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does STRA pay dividends?
Yes — Strategic Education, Inc. pays a dividend.
Strategic Education pays a regular dividend, which is relatively uncommon among smaller education companies. This reflects a management team willing to return capital to shareholders rather than deploy it all toward aggressive expansion. Income-focused investors may find the dividend cadence appealing, though the Growth pillar's Weak rating is worth weighing alongside the payout.
When does STRA report earnings?
Strategic Education reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's recent results reflect the pressures visible in its Growth pillar rating — enrollment trends in for-profit higher education remain a key variable. Risk management appears measured, which has helped stabilize the business through a challenging period for the sector.
For the most recent quarter's results and guidance, visit Strategic Education's investor relations page directly.
STRA Price History
+36.2% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Strategic Education, Inc.?
Based on Strategic Education, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
STRA Long-term Outlook
The fundamental outlook for STRA is shaped by its Weak Growth pillar and Attractive Valuation. The business is not positioned as a high-growth story, but the risk profile appears manageable and the valuation leaves room for patient investors. Execution on employer-partnership programs and international expansion could gradually improve the growth trajectory without requiring aggressive capital deployment.
Growth drivers
- Employer-sponsored education benefit programs expanding the addressable market
- Online delivery model reducing geographic constraints on enrollment
- International segment growth through Torrens University in Australia and New Zealand
Key risks
- Regulatory scrutiny on for-profit higher education institutions
- Enrollment sensitivity to macroeconomic conditions and student loan policy
- Limited pricing power in a competitive online education landscape
STRA vs Peers
STRA operates in a competitive for-profit and online education market alongside several publicly traded peers.
UTI focuses on vocational and technical training for skilled trades, targeting a narrower but high-demand workforce segment compared to STRA's broad degree portfolio.
Perdoceo operates Colorado Technical University and American InterContinental University, competing directly with STRA in online adult degree programs.
Afya is a Brazil-based medical education company, giving it a distinct geographic and specialty focus relative to STRA's North American and Australasian operations.
Frequently Asked Questions
What does Strategic Education do?
Strategic Education provides post-secondary education through campus and online formats. It operates Strayer University, Capella University, and the Jack Welch Management Institute in the U.S., along with Torrens University and Think Education in Australia and New Zealand. It also offers non-degree coding bootcamps and employer-sponsored education benefit services.
Does STRA pay dividends?
Yes, Strategic Education pays a regular dividend. This is relatively uncommon among small-cap education companies and signals a degree of financial stability. Investors seeking income alongside a defensive sector exposure may find this relevant, though the Weak Growth pillar is worth considering alongside the dividend.
When does STRA report earnings?
Strategic Education reports on a quarterly cadence, as is standard for US-listed companies. Specific upcoming earnings dates are not confirmed through our data source. Check the company's investor relations page or a financial calendar for the most current schedule.
Is STRA a good stock to buy?
UQS Score rates STRA as Good overall. Its Attractive Valuation and Good Risk profile are positives, while the Weak Growth pillar and Neutral Quality and Moat ratings temper enthusiasm. Whether it fits a portfolio depends on an investor's priorities — the complete pillar breakdown is available to Pro members.
Is STRA overvalued?
Based on the UQS Valuation pillar, STRA is rated Attractive, suggesting the stock is not trading at a stretched premium relative to its fundamentals. For investors focused on entry price, this is a constructive signal — though valuation alone does not determine overall stock quality.
How does STRA compare to its competitors?
STRA's diversified model — spanning multiple university brands, online delivery, and international operations — distinguishes it from more narrowly focused peers like UTI or Perdoceo. Its Good Risk rating and dividend suggest relative stability, though its Growth profile is weaker than some competitors in faster-growing niches.
What is STRA's market cap bracket?
STRA is classified as a small-cap company. This means it carries more liquidity and volatility risk than large-cap peers, but it may also be less efficiently priced — creating opportunities for investors who conduct thorough fundamental research.
Who founded Strategic Education?
Strategic Education was incorporated in 1996. The company has evolved significantly through acquisitions, most notably the merger with Capella Education Company in 2018, which created the current multi-brand structure. Founding details are widely available through public company filings and historical records.
Is STRA a long-term quality investment?
As a long-term quality indicator, STRA's Good UQS Score reflects a mixed picture. The Attractive Valuation and Good Risk pillar support a case for stability, but the Weak Growth and Neutral Moat ratings suggest the business lacks strong structural advantages to drive compounding returns. Long-term conviction would require improvement in those areas.
What is the main competitive advantage of Strategic Education?
STRA's primary advantage lies in its multi-brand portfolio targeting working adults — a demographic with persistent demand for flexible, career-focused credentials. Its employer-partnership programs through Education Technology Services add a B2B revenue channel that many pure-play online universities lack. However, the Moat pillar is rated Neutral, indicating this advantage is not yet deeply entrenched.
What sector does STRA belong to?
STRA is classified under the Consumer Defensive sector. Education services tend to hold up relatively well during economic downturns, as workers often pursue additional credentials during periods of job market uncertainty — a dynamic that supports the defensive classification.
Is STRA a growth stock or value stock?
Based on UQS pillar labels, STRA leans toward value rather than growth. The Valuation pillar is Attractive while the Growth pillar is Weak, suggesting the stock is priced modestly but is not expected to expand rapidly. It may appeal more to value-oriented or income-focused investors than to growth-oriented ones.
Unlock Full STRA Analysis
Sign in to unlock the detailed analysis behind the UQS Score.
- ✓View the complete five-pillar UQS Score breakdown
- ✓Access detailed financial metrics and trend data
- ✓Compare STRA against sector peers side by side
- ✓See Valuation and Risk scores with supporting context
- ✓Get the full analyst-grade quality view in one place
Pro Analysis
STRA — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 56.6 | 55.6 | 43.0 | 38.2 | 65.0 | 96.7 | +0.1 |
| May 3, 2026 | 56.5 | 54.9 | 43.0 | 38.2 | 66.1 | 96.7 | -0.1 |
| Apr 26, 2026 | 56.6 | 54.9 | 43.0 | 38.2 | 66.1 | 97.1 | +0.1 |
| Apr 25, 2026 | 56.5 | 54.9 | 43.0 | 38.9 | 66.1 | 95.5 | -0.2 |
| Apr 19, 2026 | 56.7 | 54.9 | 43.0 | 39.8 | 66.1 | 95.4 | -0.2 |
| Apr 18, 2026 | 56.9 | 54.9 | 43.0 | 39.8 | 66.1 | 96.7 | -0.3 |
| Apr 14, 2026 | 57.2 | 54.9 | 43.0 | 39.8 | 66.1 | 98.8 | +0.1 |
| Apr 12, 2026 | 57.1 | 54.9 | 43.0 | 39.8 | 66.1 | 98.2 | +0.2 |
| Apr 5, 2026 | 56.9 | 54.9 | 43.0 | 39.8 | 66.1 | 96.9 | 0.0 |
| Apr 2, 2026 | 56.9 | 54.9 | 43.0 | 39.8 | 66.1 | 97.2 | — |
STRA — Pillar Breakdown
Quality
— 55.6/100 (25%)Strategic Education, Inc. shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 38.2/100 (20%)Strategic Education, Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 65.0/100 (15%)Strategic Education, Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 96.7/100 (15%)Strategic Education, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 43/100 (25%)Strategic Education, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for STRA.
Score Composition
Financial Data
More Stock Analysis
How is the STRA UQS Score Calculated?
The UQS (Unified Quality Score) for Strategic Education, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Strategic Education, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Strategic Education, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.