Is Strategic Education, Inc. (STRA) Halal?

NASDAQ Consumer Defensive United States $1.9B
✓ HALAL
Confidence: 95/100
Strategic Education, Inc. (STRA) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.6% against the AAOIFI threshold of 30%, Strategic Education, Inc. comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Education & Training Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.6%
/ 30%
7.6%
/ 30%
4.2%
/ 30%
1.48%
/ 5%
✓ HALAL
DJIM 5.6%
/ 33%
7.6%
/ 33%
4.2%
/ 33%
1.48%
/ 5%
✓ HALAL
MSCI 5.4%
/ 33%
7.3%
/ 33%
4.0%
/ 33%
1.48%
/ 5%
✓ HALAL
S&P 5.6%
/ 33%
7.6%
/ 33%
4.2%
/ 33%
1.48%
/ 5%
✓ HALAL
FTSE 5.4%
/ 33%
7.3%
/ 33%
4.0%
/ 50%
1.48%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
15.1
Forward: 10.1
EPS
$5.41
Dividend Yield
295.0%
Payout: 44.4%
P/B Ratio
1.1
EV/EBITDA
7.4
EV: $1.8B
Revenue
$1.3B
Growth: 3.8%
Beta
0.6
Low volatility
Current Ratio
1.3

Profitability

Gross Margin 49.0%
Operating Margin 16.9%
Net Margin 10.0%
Return on Equity (ROE) 7.7%
Return on Assets (ROA) 6.0%

Cash Flow & Balance Sheet

Operating Cash Flow$198M
Free Cash Flow$154M
Total Debt$109M
Debt-to-Equity6.6
Current Ratio1.3
Total Assets$2.0B

Price & Trading

Last Close$83.45
50-Day MA$81.10
200-Day MA$80.86
Avg Volume260K
Beta0.6
52-Week Range
$72.17
$93.45

About Strategic Education, Inc. (STRA)

CEO
Mr. Karl McDonnell
Employees
3,683
Sector
Consumer Defensive
Industry
Education & Training Services
Country
United States
Exchange
NASDAQ
Market Cap
$1.9B
Currency
USD

Strategic Education, Inc. provides education services through campus-based and online post-secondary education, and programs to develop job-ready skills. The company operates through three segments: U.S. Higher Education, Australia/New Zealand, and Education Technology Services. It operates Strayer University that offers undergraduate and graduate degree programs in business, criminal justice, education, health services, information technology, and public administration at physical campuses located in the eastern United States, as well as through online; non-degree web and mobile application development courses through Hackbright Academy and Devmountain; and MBA online through its Jack Welch Management Institute. In addition, the company operates Capella University, an online accredited institution of higher education; Torrens University, which offers undergraduate, graduate, higher degree by research, and specialized degree courses in business, design and creative technology, health, hospitality, and education fields through online and on physical campuses located in Australia; Think Education, a vocational training organization and higher education provider; and Media Design School, which provides industry-endorsed courses in 3D animation and visual effects, game art and programming, graphic and motion design, digital media, artificial intelligence, and creative advertising. It offers Workforce Edge, an administration platform that enables employers to manage and streamline their education benefits programs; and Sophia Learning, which offers low-cost online general education-level courses. Strategic Education, Inc. was founded in 1892 and is headquartered in Herndon, Virginia.

Purification Calculator

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Frequently Asked Questions

Is Strategic Education, Inc. (STRA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Strategic Education, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Strategic Education, Inc.'s debt ratio?

Strategic Education, Inc.'s debt ratio is 5.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 5.4%.

Does Strategic Education, Inc. require dividend purification?

Yes, Strategic Education, Inc. has an impermissible income ratio of 1.48%, which means 1.48% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Strategic Education, Inc.'s key financial metrics?

Strategic Education, Inc. has a market capitalization of $1.9B, trailing P/E ratio of 15.1, and revenue of $1.3B. The company maintains a gross margin of 49.0% and a net margin of 10.0%. Return on equity stands at 7.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.