Workforce Edge partnership puts employer-focused education in the spotlight
Strategic Education (STRA) drew fresh attention after its Workforce Edge platform announced a collaboration with Southern New Hampshire University, giving employer partners access to more than 200 online degree and certificate programs.
See our latest analysis for Strategic Education.
The Workforce Edge and SNHU announcement comes after a period where the share price has been relatively steady, with a 1-day share price return of 1.19% and a 90-day share price return of 1.63%. However, the 1-year total shareholder return declined 9.42%, suggesting recent news is arriving against a backdrop of softer long term sentiment.
If this employer-education partnership has you thinking about longer term themes in your portfolio, it could be worth broadening your search and checking out 20 top founder-led companies
With the stock roughly flat year to date, a 1 year total return that has declined 9.42% and an intrinsic value estimate sitting at a sizeable discount to the current US$78.53 price, is there a genuine opportunity here, or is the market already pricing in future growth?
Most Popular Narrative: 9.7% Undervalued
With a fair value estimate of $87 against a last close of $78.53, the most followed narrative frames Strategic Education as undervalued and anchored in steady, cash flow focused assumptions.
The analysts have a consensus price target of $95.0 for Strategic Education based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $105.0, and the most bearish reporting a price target of just $85.0.
Want to see what sits behind that valuation gap? The narrative leans on measured revenue growth, wider margins and a lower future earnings multiple than many peers. The mix may surprise you.
Result: Fair Value of $87 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to weigh risks, including potential pressure on U.S. enrollment and regulatory changes in Australia and New Zealand that could cap international student numbers.
Find out about the key risks to this Strategic Education narrative.
Next Steps
Given the mixed tone so far, it makes sense to move quickly, review the key drivers yourself, and see why some investors are focused on 4 key rewards.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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