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Strategic EducationSTRA +0.80%76 ROC (Joel Greenblatt) % is 87.43% as of Mar. 2026, which is 39% above its 10-year median of 62.91. 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 263 Education companies, Strategic Education ranks better than 83.65% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Strategic Education's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 87.43%.
The historical rank and industry rank for Strategic Education's ROC (Joel Greenblatt) % or its related term are showing as below:
STRA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 26.51 Med: 62.91 Max: 96.88
Current: 96.88
During the past 13 years, Strategic Education's highest ROC (Joel Greenblatt) % was 96.88%. The lowest was 26.51%. And the median was 62.91%.
STRA's ROC (Joel Greenblatt) % is ranked better than 83.65% of 263
companies
in the Education industry
Industry Median: 18.42
vs STRA: 96.88
Strategic Education's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 15.20% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Strategic Education ROC (Joel Greenblatt) % Related Terms
Strategic Education ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Strategic Education's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Education & Training Services subindustry, Strategic Education's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Education Industry
For the Education industry and Consumer Defensive sector, Strategic Education's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Strategic Education's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 87.43% mean?
Strategic Education (STRA) has a ROC (Joel Greenblatt) % of 87.43% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Strategic Education and its competitors. This is 39% above median its historical median of 62.91. Over the past decade, Strategic Education's ROC (Joel Greenblatt) % has ranged from 26.51 to 96.88. According to the industry distribution chart, Strategic Education ranks #43 out of 263 companies in the Education industry, placing it in the top 16.3%.
Is Strategic Education's ROC (Joel Greenblatt) % too high?
Strategic Education's current ROC (Joel Greenblatt) % of 87.43% is 39% above median its 10-year median of 62.91. Over the past 10 years, this metric has ranged from a low of 26.51 to a high of 96.88. The Education industry median ROC (Joel Greenblatt) % is 18.42. Strategic Education's value of 87.43% is 374.6% above this industry median. Based on the distribution chart, Strategic Education ranks #43 out of 263 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 ROC (Joel Greenblatt) % compare to MH and COUR?
According to the Education industry distribution chart, Strategic Education ranks #43 out of 263 companies for ROC (Joel Greenblatt) %. This places Strategic Education in the top 16% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 18.42. Strategic Education's value of 87.43% is 374.6% above this benchmark. Historically, Strategic Education's own ROC (Joel Greenblatt) % has ranged from 26.51 to 96.88 over the past decade. While the company's 10-year median is 62.91 vs. the industry median of 18.42, 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 ROC (Joel Greenblatt) % for an Education company?
The median ROC (Joel Greenblatt) % among Education companies is 18.42, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Strategic Education's current ROC (Joel Greenblatt) % of 87.43% is 374.6% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Strategic Education and its competitors. For the Education industry, the median ROC (Joel Greenblatt) % is 18.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strategic Education's current ROC (Joel Greenblatt) % is 87.43%, which is 39% above median its own 10-year median of 62.91. 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 ROC (Joel Greenblatt) % is 87.43%, which is 39% above median its 10-year median of 62.91 and 374.6% above the Education industry median of 18.42. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Strategic Education (STRA), the current ROC (Joel Greenblatt) % is 87.43% 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:
ROC (Joel Greenblatt) %: 87.43% (39% above median its 10-year median of 62.91)
GF Value™: $98.62 vs. price of $75.64 (23.3% below fair value)
Industry Position: 374.6% above the Education median (#43 of 263)
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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