Of note is the ratio of K12 Inc's sales and general administrative expense to its total operating expenses; 87.9% of US stocks have a lower such ratio.
With a year-over-year growth in debt of 749.89%, K12 Inc's debt growth rate surpasses 97.36% of about US stocks.
K12 Inc's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is -28.03%, greater than the shareholder yield of merely 14.74% of stocks in our set.
Stocks that are quantitatively similar to LRN, based on their financial statements, market capitalization, and price volatility, are PIPR, ELF, LMNR, ELMD, and MHH.
K12 Inc. offers proprietary curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade. The company was founded in 2000 and is based in Herndon, Virginia.
LRN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for K12 Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that K12 Inc ranked in the 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for K12 Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.23% -- higher than only 6.66% of stocks in our DCF forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than only 18.82% stocks in the Consumer Defensive sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of K12 Inc? See FMX, LND, MGPI, ARCE, and ONE.
HERNDON, Va.--(BUSINESS WIRE)-- #education--Nate Davis, K12 Inc. (NYSE: LRN) CEO and Chairman of the Board of Directors, has been named a 2020 Innovator of Color by the ASU+GSV Summit. Each year, GSV Ventures accepts nominations for a leading global innovator of color who is making a true impact on education and workforce development. The honorees demonstrate a lifelong commitment to innovation and have contributed to the lives of thousands and even millions of people through their work. Davis joins an este
HERNDON, Va.--(BUSINESS WIRE)-- #diversity--As part of a company-wide commitment to launch a series of initiatives that support racial and socioeconomic equity and inclusion in and through education, K12 Inc. (NYSE: LRN)—the nation’s leading provider of online and blended education—today announced its inaugural We Stand Together Scholarship. Designed to increase the number of underserved students of color at K12 Private Academy, the scholarship will provide up to 60 students in kindergarten through 12th gra
Prior to COVID-19, K12 Inc. (LRN) was arguably a mediocre stock with limited growth and challenged profitability. COVID-19 changed that, offering substantial growth potential against a partially fixed cost base given the scalable nature of online learning. Indeed, we know enrollments are up 39%, but as we'll discuss, that's partial...
Rational Expectations on Seeking Alpha | September 20, 2020
K12 (LRN), down 9% but off its lows of the day after the Miami-Dade school district opted to cut ties with the remote learning platform, has another detractor -- short-only fund Safkhet Capital.The short only firm, run by Fahmi Quadir who is famously known for her short calls on Wirecard...
HERNDON, Va.--(BUSINESS WIRE)--K12 Inc. (NYSE: LRN), one of the nation’s leading tech-enabled education companies, today announced the pricing of its offering of $360,000,000 aggregate principal amount of 1.125% convertible senior notes due 2027 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering size was increased from the previously announced offering size of $300,000,000