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Strategic EducationSTRA +0.80%76 Return-on-Tangible-Equity is 92.67% as of Mar. 2026, which is 187% above its 10-year median of 32.31. GuruFocus rates STRA with a GF Score™ of 76/100 and a GF Value™ of $98.62 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 246 Education companies, Strategic Education ranks better than 85.77% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Strategic Education's annualized net income for the quarter that ended in Mar. 2026 was $131 Mil. Strategic Education's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $142 Mil. Therefore, Strategic Education's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 92.67%.
The historical rank and industry rank for Strategic Education's Return-on-Tangible-Equity or its related term are showing as below:
STRA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -5.75 Med: 32.31 Max: 78.22
Current: 78.22
During the past 13 years, Strategic Education's highest Return-on-Tangible-Equity was 78.22%. The lowest was -5.75%. And the median was 32.31%.
STRA's Return-on-Tangible-Equity is ranked better than 85.77% of 246
companies
in the Education industry
Industry Median: 11.685
vs STRA: 78.22
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Strategic Education Return-on-Tangible-Equity Related Terms
Strategic Education Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Strategic Education's Return-on-Tangible-Equity can be seen below:
* 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.
STRA vs MH, COUR, LINC: Return-on-Tangible-Equity Comparison
For the Education & Training Services subindustry, Strategic Education's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Education Industry
For the Education industry and Consumer Defensive sector, Strategic Education's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Strategic Education's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 92.67% mean?
Strategic Education (STRA) has a Return-on-Tangible-Equity of 92.67% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Strategic Education and its competitors. This is 187% above median its historical median of 32.31. According to the industry distribution chart, Strategic Education ranks #35 out of 246 companies in the Education industry, placing it in the top 14.2%.
Is Strategic Education's Return-on-Tangible-Equity too high?
Strategic Education's current Return-on-Tangible-Equity of 92.67% is 187% above median its 10-year median of 32.31. The Education industry median Return-on-Tangible-Equity is 11.69. Strategic Education's value of 92.67% is 693.1% above this industry median. Based on the distribution chart, Strategic Education ranks #35 out of 246 companies in the Education industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to MH and COUR?
According to the Education industry distribution chart, Strategic Education ranks #35 out of 246 companies for Return-on-Tangible-Equity. This places Strategic Education in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.69. Strategic Education's value of 92.67% is 693.1% above this benchmark. While the company's 10-year median is 32.31 vs. the industry median of 11.69, Strategic Education has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Education company?
The median Return-on-Tangible-Equity among Education companies is 11.69, based on 246 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Strategic Education's current Return-on-Tangible-Equity of 92.67% is 693.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Strategic Education and its competitors. For the Education industry, the median Return-on-Tangible-Equity is 11.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strategic Education's current Return-on-Tangible-Equity is 92.67%, which is 187% above median its own 10-year median of 32.31. 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 $98.62, compared to a current price of $75.64 — trading 23.3% below its estimated fair value. The current Return-on-Tangible-Equity is 92.67%, which is 187% above median its 10-year median of 32.31 and 693.1% above the Education industry median of 11.69. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Strategic Education (STRA), the current Return-on-Tangible-Equity is 92.67% as of Mar. 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 $75.64 is trading 23.3% below its estimated GF Value™ of $98.62.
GuruFocus considers Strategic Education to be Modestly Undervalued.
Key valuation signals for STRA:
Return-on-Tangible-Equity: 92.67% (187% above median its 10-year median of 32.31)
GF Value™: $98.62 vs. price of $75.64 (23.3% below fair value)
Industry Position: 693.1% above the Education median (#35 of 246)
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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