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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Strategic Education has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Strategic Education's interest coverage with the available data.
Strategic Education's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.08.
As of today, Strategic Education's Altman Z-Score is 3.68.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Strategic Education has the Financial Strength Rank of 7.
Strategic Education Financial Strength Related Terms
STRA vs DAO, COUR, MH: Financial Strength Comparison
For the Education & Training Services subindustry, Strategic Education's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Strategic Education Financial Strength vs Education Industry
For the Education industry and Consumer Defensive sector, Strategic Education's Financial Strength distribution charts can be found below:
* The bar in red indicates where Strategic Education's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Strategic Education has a Z-score of 3.68, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.68 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Strategic Education (STRA) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Strategic Education and its competitors. This is 13% below median its historical median of 8.00. Over the past decade, Strategic Education's Financial Strength has ranged from 6.00 to 10.00.
Is Strategic Education's Financial Strength too high?
Strategic Education's current Financial Strength of 7 is 13% below median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 10.00. Overall, Strategic Education has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Strategic Education's Financial Strength compare to DAO and COUR?
Strategic Education's Financial Strength of 7 can be compared against companies in the Education industry. Historically, Strategic Education's own Financial Strength has ranged from 6.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Education company?
A good Financial Strength depends on the Education industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Strategic Education and its competitors. Strategic Education's current Financial Strength is 7, which is 13% below median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Strategic Education stock overvalued right now?
Based on GuruFocus' analysis, Strategic Education (STRA) is currently considered Modestly Undervalued. The stock's GF Value™ is $100.30, compared to a current price of $83.42 — trading 16.8% below its estimated fair value. The current Financial Strength is 7, which is 13% below median its 10-year median of 8.00. Strategic Education's overall GF Score™ is 76/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Strategic Education (STRA), the current Financial Strength is 7 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Strategic Education (STRA) Overvalued in 2026?
Based on GuruFocus' analysis, Strategic Education stock appears to be undervalued.
The current stock price of $83.42 is trading 16.8% below its estimated GF Value™ of $100.30.
GuruFocus considers Strategic Education to be Modestly Undervalued.
Key valuation signals for STRA:
Financial Strength: 7 (13% below median its 10-year median of 8.00)
GF Value™: $100.30 vs. price of $83.42 (16.8% below fair value)
No single metric tells the full story. See the STRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Strategic Education Inc. is an education services company that provides access to high-quality education through campus-based and online post-secondary education offerings, as well as through programs to develop job-ready skills for high-demand markets. The company operates through wholly-owned subsidiaries Strayer University and Capella University, both accredited post-secondary institutions of higher education located in the United States, as well as Torrens University, an accredited post-secondary institution of higher education located in Australia. It provide employees with access to affordable and industry relevant training, certificate, and degree programs. The reportable segments of the company are U.S. Higher Education, Australia/New Zealand and Education Technology Services.
76GF Score
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