Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Strategic Education's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was -16.75%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Strategic Education's 5-Year ROIIC % or its related term are showing as below:
STRA's 5-Year ROIIC % is ranked worse than 78.87% of 213
companies
in the Education industry
Industry Median: 5.06
vs STRA: -16.75
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Strategic Education 5-Year ROIIC % Related Terms
Strategic Education 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Strategic Education's 5-Year ROIIC % 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.
For the Education & Training Services subindustry, Strategic Education's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Education Industry
For the Education industry and Consumer Defensive sector, Strategic Education's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Strategic Education's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Strategic Education (STRA) has a 5-Year ROIIC % of -16.75 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Strategic Education and its competitors. According to the industry distribution chart, Strategic Education ranks #168 out of 213 companies in the Education industry, placing it in the top 78.9%.
Is Strategic Education's 5-Year ROIIC % too high?
Strategic Education's current 5-Year ROIIC % is -16.75. Based on the distribution chart, Strategic Education ranks #168 out of 213 companies in the Education industry, which is in the bottom quartile 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 5-Year ROIIC % compare to MH and COUR?
According to the Education industry distribution chart, Strategic Education ranks #168 out of 213 companies for 5-Year ROIIC %. This places Strategic Education in the lower half of its industry. The industry median 5-Year ROIIC % is 5.06. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Education company?
The median 5-Year ROIIC % among Education companies is 5.06, based on 213 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Strategic Education and its competitors. For the Education industry, the median 5-Year ROIIC % is 5.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strategic Education's current 5-Year ROIIC % is -16.75. 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 5-Year ROIIC % is -16.75. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Strategic Education (STRA), the current 5-Year ROIIC % is -16.75 as of Dec. 2025. 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:
5-Year ROIIC %: -16.75
GF Value™: $98.62 vs. price of $75.64 (23.3% 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
Get the complete analysis for STRA
5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STRA has been successfully added to your 
