Stock fact sheet · data as of
Strategic Education, Inc. (STRA): fair value, margin of safety and Wheel Score
Consumer Defensive · Education & Training Services · United States · Defensive
Is STRA undervalued?
STRA has a margin of safety of 55%: the stock closed at 80.97 on 16 Oct 2026 against a GLS average fair value of 180.97. 7 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 35.31 while GLS Growth gives 314.08. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files STRA under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for STRA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 185.78 | +129% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 103.99 | +28% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 266.71 | +229% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 109.65 | +35% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 314.08 | +288% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 229.33 | +183% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 313.93 | +288% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 35.31 | -56% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 69.90 | -14% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.15 | -106% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 93.33 | +15% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - STRA passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 7.2 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 7.2%, ROE 7.7%, ROA 6.2% - with debt at 0.07 times equity and a free-cash-flow yield of 10.1%.
The dividend yield is 2.96% at a payout ratio of 41%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from U.S. Higher Education 65%, Australia/New Zealand 22%, Education Technology Services 13% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 7.2% |
|---|---|---|---|
| GLS Moat | 7.2 / 10 | ROE | 7.7% |
| Debt / equity | 0.07 | ROA | 6.2% |
| Free-cash-flow yield | 10.1% | Payout ratio | 41% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 83: Prime
STRA scores 83 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (11/15), the option premium on offer (20/20) and how easily the stock trades (14/20).
Implied volatility is 43% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,530 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 607k shares a day on a market cap of $1.8B, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 55% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 11 / 15 | moat 7.2/10 | |
| Premium | 20 / 20 | implied volatility 43% | |
| Stability | 14 / 20 | 607k shares/day, $1.8B cap, beta 0.47 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Education & Training Services
The 12 companies below are the closest to Strategic Education, Inc. by market cap within the Education & Training Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PRDO Perdoceo Education Corporation | 33.55 | 48.56 | +31% | 87Prime | $2.1B |
| DAO Youdao, Inc. | 18.51 | 12.84 | -44% | 39Weak | $2.2B |
| COUR Coursera, Inc. | 5.09 | 9.88 | +48% | 45Weak | $1.3B |
| AFYA Afya Limited | 14.52 | 85.46 | +83% | 66Good | $1.3B |
| MH McGraw Hill, Inc. | 14.20 | 26.91 | +47% | 76Good | $2.7B |
| UTI Universal Technical Institute, Inc. | 20.31 | 18.31 | -11% | 66Good | $1.1B |
| GOTU Gaotu Techedu Inc. | 2.67 | 16.70 | +84% | 45Weak | $962M |
| LRN Stride, Inc. | 83.18 | 245.69 | +66% | 85Prime | $3.5B |
| APEI American Public Education, Inc. | 49.13 | 74.71 | +34% | 78Good | $899M |
| PXED Phoenix Education Partners, Inc | 23.79 | 56.60 | +58% | 39No options | $858M |
| LOPE Grand Canyon Education, Inc. | 161.43 | 166.55 | +3% | 72Good | $4.2B |
| CVSA Covista Inc. | 127.24 | 235.79 | +46% | 89Prime | $4.3B |
⚖ Compare STRA with 7 of them All Consumer Defensive stocks →
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about STRA
Is STRA undervalued right now?
By the GLS models, yes: at 80.97 the stock is 55% below the average fair value of 180.97 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of STRA and what does it mean?
STRA scores 83 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for STRA?
180.97 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Strategic Education, Inc. report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STRA have listed options, and how liquid are they?
Yes. The nightly snapshot found 192 listed contracts with 1,530 open interest across all expiries and implied volatility of 43% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.