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K12

DB:3KA
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3KA
DB
$855M
Market Cap
  1. Home
  2. DE
  3. Consumer Services
Company description

K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally. The last earnings update was 71 days ago. More info.


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  • K12 has significant price volatility in the past 3 months.
3KA Share Price and Events
7 Day Returns
24.4%
DB:3KA
2.6%
Europe Consumer Services
4.3%
DE Market
1 Year Returns
-38.2%
DB:3KA
2.7%
Europe Consumer Services
-14.2%
DE Market
3KA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
K12 (3KA) 24.4% 22.1% 9.3% -38.2% 12.8% 33.1%
Europe Consumer Services 2.6% -4.1% -5.1% 2.7% -14.2% -55.7%
DE Market 4.3% -9% -21.6% -14.2% -19.6% -25.6%
1 Year Return vs Industry and Market
  • 3KA underperformed the Consumer Services industry which returned 2.7% over the past year.
  • 3KA underperformed the Market in Germany which returned -14.2% over the past year.
Price Volatility
3KA
Industry
5yr Volatility vs Market

Value

 Is K12 undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of K12 to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for K12.

DB:3KA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:3KA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.644 (1 + (1- 21%) (5.72%))
0.781
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 5.44%)
3.96%

Discounted Cash Flow Calculation for DB:3KA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for K12 is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:3KA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 3.96%)
2020 74.17 Analyst x2 71.34
2021 89.14 Analyst x2 82.48
2022 94.30 Est @ 5.79% 83.93
2023 98.02 Est @ 3.94% 83.91
2024 100.61 Est @ 2.64% 82.84
2025 102.35 Est @ 1.73% 81.06
2026 103.47 Est @ 1.09% 78.83
2027 104.14 Est @ 0.65% 76.32
2028 104.49 Est @ 0.34% 73.65
2029 104.61 Est @ 0.12% 70.93
Present value of next 10 years cash flows $785.00
DB:3KA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $104.61 × (1 + -0.39%) ÷ (3.96% – -0.39%)
$2,394.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,394.43 ÷ (1 + 3.96%)10
$1,623.52
DB:3KA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $785.00 + $1,623.52
$2,408.52
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,408.52 / 39.22
$61.41
DB:3KA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:3KA represents 0.91327x of NYSE:LRN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.91327x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 61.41 x 0.91327
€56.08
Value per share (EUR) From above. €56.08
Current discount Discount to share price of €19.90
= -1 x (€19.90 - €56.08) / €56.08
64.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price K12 is available for.
Intrinsic value
>50%
Share price is €19.9 vs Future cash flow value of €56.08
Current Discount Checks
For K12 to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • K12's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • K12's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for K12's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are K12's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:3KA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.83
NYSE:LRN Share Price ** NYSE (2020-04-07) in USD $21.79
Europe Consumer Services Industry PE Ratio Median Figure of 12 Publicly-Listed Consumer Services Companies 15.7x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 17.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of K12.

DB:3KA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:LRN Share Price ÷ EPS (both in USD)

= 21.79 ÷ 0.83

26.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K12 is overvalued based on earnings compared to the Europe Consumer Services industry average.
  • K12 is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does K12's expected growth come at a high price?
Raw Data
DB:3KA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
21%per year
Europe Consumer Services Industry PEG Ratio Median Figure of 5 Publicly-Listed Consumer Services Companies 0.34x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:3KA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.18x ÷ 21%

1.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K12 is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on K12's assets?
Raw Data
DB:3KA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $16.61
NYSE:LRN Share Price * NYSE (2020-04-07) in USD $21.79
Europe Consumer Services Industry PB Ratio Median Figure of 22 Publicly-Listed Consumer Services Companies 2.22x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.47x
DB:3KA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:LRN Share Price ÷ Book Value per Share (both in USD)

= 21.79 ÷ 16.61

1.31x

* Primary Listing of K12.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K12 is good value based on assets compared to the Europe Consumer Services industry average.
X
Value checks
We assess K12's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. K12 has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is K12 expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is K12 expected to grow at an attractive rate?
  • K12's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • K12's earnings growth is expected to exceed the Germany market average.
  • K12's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:3KA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:3KA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 21%
DB:3KA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 7.4%
Europe Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 17.4%
Europe Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 7.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:3KA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:3KA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30
2021-06-30 1,122 142 31 5
2020-06-30 1,034 121 20 5
2020-04-08
DB:3KA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,024 95 33
2019-09-30 1,022 104 36
2019-06-30 1,016 142 37
2019-03-31 998 122 43
2018-12-31 978 131 38
2018-09-30 940 115 27
2018-06-30 918 105 28
2018-03-31 895 107 12
2017-12-31 884 78 8
2017-09-30 888 90 6
2017-06-30 889 89 0
2017-03-31 894 98 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • K12's earnings are expected to grow significantly at over 20% yearly.
  • K12's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:3KA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from K12 Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3KA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 1.15 1.15 1.15 1.00
2021-06-30 0.76 0.86 0.61 5.00
2020-06-30 0.50 0.56 0.46 5.00
2020-04-08
DB:3KA Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.83
2019-09-30 0.92
2019-06-30 0.96
2019-03-31 1.11
2018-12-31 0.97
2018-09-30 0.70
2018-06-30 0.70
2018-03-31 0.30
2017-12-31 0.20
2017-09-30 0.16
2017-06-30 0.01
2017-03-31 0.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • K12 is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess K12's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
K12 has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has K12 performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare K12's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • K12 has delivered over 20% year on year earnings growth in the past 5 years.
  • K12's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • K12's 1-year earnings growth is negative, it can't be compared to the Europe Consumer Services industry average.
Earnings and Revenue History
K12's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from K12 Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3KA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,024.25 32.64 296.95 9.48
2019-09-30 1,021.56 35.76 298.42 9.48
2019-06-30 1,015.75 37.21 297.35 9.48
2019-03-31 998.31 43.24 292.08 8.89
2018-12-31 977.92 37.85 299.54 3.97
2018-09-30 940.26 27.39 300.25 6.35
2018-06-30 917.73 27.62 290.45 9.25
2018-03-31 894.62 11.79 292.59 10.29
2017-12-31 884.29 7.84 291.95 11.80
2017-09-30 888.17 6.23 292.35 12.29
2017-06-30 888.52 0.45 300.72 12.46
2017-03-31 894.08 5.95 298.23 10.51
2016-12-31 892.89 11.11 300.49 9.57
2016-09-30 880.61 8.00 299.58 9.72
2016-06-30 872.70 9.04 294.20 10.07
2016-03-31 887.04 -1.56 297.16 13.32
2015-12-31 910.32 1.18 298.04 14.10
2015-09-30 932.81 4.97 299.15 14.31
2015-06-30 948.29 10.99 302.83 14.38
2015-03-31 944.69 34.92 301.72 12.37
2014-12-31 935.29 33.86 301.36 11.86
2014-09-30 927.90 17.86 301.96 12.02
2014-06-30 919.55 19.60 296.86 14.22
2014-03-31 890.59 9.36 292.02 18.18
2013-12-31 873.38 4.54 293.43 20.42
2013-09-30 855.49 17.04 291.66 22.60
2013-06-30 848.22 26.13 283.03 21.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • K12 has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • K12 used its assets less efficiently than the Europe Consumer Services industry average last year based on Return on Assets.
  • K12 has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess K12's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
K12 has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is K12's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up K12's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • K12 is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • K12's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of K12's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • K12 has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from K12 Company Filings, last reported 3 months ago.

DB:3KA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 651.10 0.00 211.64
2019-09-30 624.71 0.00 165.94
2019-06-30 633.37 0.00 283.12
2019-03-31 624.74 0.00 234.03
2018-12-31 603.96 0.00 203.28
2018-09-30 575.70 0.00 143.05
2018-06-30 587.19 0.00 231.11
2018-03-31 599.43 0.00 227.91
2017-12-31 586.34 0.00 189.50
2017-09-30 567.57 0.00 147.34
2017-06-30 575.05 0.00 230.86
2017-03-31 572.68 0.00 194.71
2016-12-31 560.35 0.00 182.15
2016-09-30 553.65 0.00 135.09
2016-06-30 566.22 0.00 213.99
2016-03-31 561.96 0.00 199.51
2015-12-31 545.10 0.00 171.28
2015-09-30 533.64 0.00 150.86
2015-06-30 546.54 0.00 195.85
2015-03-31 554.22 1.80 142.85
2014-12-31 533.59 0.00 124.23
2014-09-30 517.98 0.00 109.20
2014-06-30 545.73 0.00 196.11
2014-03-31 548.64 0.00 185.33
2013-12-31 549.31 0.00 162.89
2013-09-30 553.63 0.00 163.47
2013-06-30 548.96 0.39 181.48
  • K12 has no debt.
  • K12 had no debt 5 years ago.
  • K12 has no debt, it does not need to be covered by operating cash flow.
  • K12 has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess K12's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. K12 has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is K12's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from K12 dividends.
If you bought €2,000 of K12 shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate K12's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate K12's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:3KA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.6%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:3KA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30
2020-06-30
2020-04-08

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as K12 has not reported any payouts.
  • Unable to verify if K12's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of K12's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as K12 has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess K12's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can K12 afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. K12 has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of K12's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nate Davis
COMPENSATION $9,785,697
AGE 65
TENURE AS CEO 2.1 years
CEO Bio

Mr. Nathaniel Alonzo Davis, also known as Nate, is Executive Chairman at K12, Inc. since January 2013 and is its Chief Executive Officer since March 2018. Mr. Davis is Managing Director and Board Manager and Owner of RANND Advisory Group since June 2003. He is the Chief Executive Officer, President and Chief Operating Officer of XM Satellite Radio Holdings Inc from 2006 through 2008. He also serves as a Director and Board Manager at Mutual of America Capital Management LLC. He is the President of XM Satellite Radio Inc. since July 24, 2006 and is its Chief Executive Officer since August 2007. He is the Chief Operating Officer of XM Satellite Radio, Inc. from July 24, 2006 to August 2007. He is the Executive in Residence at Columbia Capital L.L.C. from 2003 to 2006. He is the President and Chief Operating Officer of XO Communications Inc. (now XO Holdings, Inc.) from January 2000 to May 2003. During Mr. Davis’s tenure, XO became a $1.38B integrated communications provider offering voice, data, internet access and web hosting services to all segments of the business market. He is an Executive Vice President of Technical Services of Nextel Communications, Inc. from October 1998 to December 1999, where he was responsible for the technical and engineering operations of Nextel's nationwide switching and wireless communications network, billing and information technology systems. From August 1986 to September 1998, he served in a variety of senior engineering and finance roles at MCI Communications Corporation, most recently as a Senior Vice President and Chief Financial Officer of MCI Telecommunications. From November 1996 to September 1998, he is the Chief Financial Officer of U.S. Operations at MCI Telecommunications and as president and Chief Operating Officer of MCI Metro. Mr. Davislso is managing director of RANDD Advisory Group, a business consulting group that advises venture capital, media, and technology firms and provides due diligence, business process improvement, sales process improvement, management development and business plan development services, since 2003.Mr. Davis has served in a variety of roles that includes Senior Vice President of Network Operations, Chief Operating Officer of MCImetro, Senior Vice President of Finance and Vice President of Systems Development. He has served At&T earlier in his career. He is the Chairman of the Board at K12, Inc. from June 28, 2012 to January 2013. He is Trustee at RLJ Lodging Trust since May 2011 and also is its Lead Independent Trustee since July 2016. He is Director of K12, Inc., since July 2009. He is Director and Lead Director of Unisys Corporation since December 2011 and April 26, 2018 respectively. He is Director of Company.com Corp., Vibrant Solutions, Telica Corporation. He is a Director of Charter Communications Inc. from August 23, 2005 to December 2008; EarthLink Holdings Corp. from February 22, 2011 to October 26, 2011; XO Communications Inc. since February 2000; XM Satellite Radio Holdings Inc. from October 1999 to July 28, 2008 and XM Satellite Radio, Inc. since October 1999. Mr. Davis holds a Bachelors of Engineering from Stevens Institute of Technology, a Masters in Engineering Computer Science from Moore School of Engineering at Penn and an M.B.A. degree from the Wharton School of Business at the University in Pennsylvania.

CEO Compensation
  • Nate's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Nate's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the K12 management team in years:

2.1
Average Tenure
55
Average Age
  • The tenure for the K12 management team is about average.
Management Team

Nate Davis

TITLE
CEO & Executive Chairman
COMPENSATION
$10M
AGE
65
TENURE
2.1 yrs

James Rhyu

TITLE
CFO and President of Product & Technology
COMPENSATION
$5M
AGE
49
TENURE
6.8 yrs

Vincent Mathis

TITLE
Executive VP
COMPENSATION
$4M
AGE
55
TENURE
1.6 yrs

Shaun McAlmont

TITLE
President of Career Readiness Education
COMPENSATION
$5M
AGE
53
TENURE
1.6 yrs

Kevin Chavous

TITLE
President of Academics
COMPENSATION
$4M
AGE
63
TENURE
2.4 yrs

Rob Banwarth

TITLE
Chief Information Officer & Senior VP
TENURE
5.1 yrs

Jeff Kwitowski

TITLE
Senior Vice President of Corporate Communications

Mike Kraft

TITLE
Senior Vice President of Corporate Communications
TENURE
1.3 yrs

Todd Goldthwaite

TITLE
Senior VP & Chief Marketing Officer
TENURE
1.3 yrs

Val Maddy

TITLE
Senior Vice President of Human Resources
TENURE
7.2 yrs
Board of Directors Tenure

Average tenure and age of the K12 board of directors in years:

5.1
Average Tenure
68
Average Age
  • The tenure for the K12 board of directors is about average.
Board of Directors

Nate Davis

TITLE
CEO & Executive Chairman
COMPENSATION
$10M
AGE
65
TENURE
7.8 yrs

Steve Fink

TITLE
Independent Director
COMPENSATION
$225K
AGE
68
TENURE
16.5 yrs

Liza McFadden

TITLE
Independent Director
COMPENSATION
$195K
AGE
56
TENURE
2.7 yrs

Bob Knowling

TITLE
Independent Director
COMPENSATION
$195K
AGE
64
TENURE
2.3 yrs

Craig Barrett

TITLE
Lead Independent Director
COMPENSATION
$190K
AGE
80
TENURE
2.6 yrs

Mary Futrell

TITLE
Member of Educational Advisory Committee
COMPENSATION
$30K
AGE
79

David Driscoll

TITLE
Member of Education Advisory Committee

Bill Bron

TITLE
Independent Director
COMPENSATION
$200K
AGE
67
TENURE
12.8 yrs

John Engler

TITLE
Independent Director
COMPENSATION
$205K
AGE
70
TENURE
7.5 yrs

Aida Alvarez

TITLE
Independent Director
COMPENSATION
$195K
AGE
69
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • K12 individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
11. Mar 20 Sell Kevin Chavous Individual 09. Mar 20 09. Mar 20 -9,000 €17.65 €-158,881
29. Oct 19 Sell Kevin Chavous Individual 25. Oct 19 25. Oct 19 -15,000 €18.52 €-277,845
X
Management checks
We assess K12's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. K12 has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

K12 Inc., a technology-based education company, together with its subsidiaries, provides online curriculum, software systems, and educational services to facilitate individualized learning for students primarily in kindergarten through 12th grade in the United States and internationally. It also offers full-time programs virtual and blended public schools; full-time virtual programs, semester courses, and supplemental educational products; and teacher training, teaching, and other academic and technology support services to public schools, school districts, private schools, charter schools, early childhood learning centers, and corporate partners. In addition, the company provides FuelEd suite of offerings, such as K12 curriculum, FuelEd online courses, and FuelEd anywhere learning systems; Middlebury Interactive Languages; Stride; and the Big Universe literacy solutions. Further, it operates online private schools, including K12 International Academy, The Keystone School, and the George Washington University Online High School. Additionally, the company offers access to the online lessons and curriculum through proprietary learning management system; learning kits and guides; student computers; and administrative, accreditation, compliance and tracking, financial management, and human resources support services, as well as facility, operations, and technology support services. It also provides academic support services comprising teachers and related, advanced and special education, and student support services, as well as supports academically at-risk learners. The company sells individual K-8 online courses and supplemental educational products directly to families. K12 Inc. was founded in 2000 and is headquartered in Herndon, Virginia.

Details
Name: K12 Inc.
3KA
Exchange: DB
Founded: 2000
$784,686,644
39,219,472
Website: http://www.k12.com
Address: K12 Inc.
2300 Corporate Park Drive,
Herndon,
Virginia, 20171,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE LRN Common Stock New York Stock Exchange US USD 13. Dec 2007
DB 3KA Common Stock Deutsche Boerse AG DE EUR 13. Dec 2007
Number of employees
Current staff
Staff numbers
4,550
K12 employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 03:39
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/06
Last earnings filing: 2020/01/28
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.