Don't overlook PERDOCEO EDUCATION CORP (NASDAQ:PRDO)—it's a hidden gem with strong fundamentals and an attractive price tag.

PERDOCEO EDUCATION CORP (NASDAQ:PRDO) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. PRDO showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Understanding PRDO's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. PRDO has earned a 8 for valuation:

• Based on the Price/Earnings ratio of 11.10, the valuation of PRDO can be described as reasonable.
• Compared to the rest of the industry, the Price/Earnings ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 85.92% of the companies listed in the same industry.
• When comparing the Price/Earnings ratio of PRDO to the average of the S&P500 Index (28.37), we can say PRDO is valued rather cheaply.
• Based on the Price/Forward Earnings ratio of 10.56, the valuation of PRDO can be described as reasonable.
• PRDO's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRDO is cheaper than 91.55% of the companies in the same industry.
• PRDO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.59.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 94.37% of the companies listed in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 88.73% of the companies listed in the same industry.
• PRDO has an outstanding profitability rating, which may justify a higher PE ratio.

Profitability Assessment of PRDO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. PRDO scores a 8 out of 10:

• PRDO's Return On Assets of 11.93% is amongst the best of the industry. PRDO outperforms 90.14% of its industry peers.
• With a decent Return On Equity value of 15.38%, PRDO is doing good in the industry, outperforming 78.87% of the companies in the same industry.
• The Return On Invested Capital of PRDO (12.14%) is better than 87.32% of its industry peers.
• PRDO has a Profit Margin of 21.66%. This is amongst the best in the industry. PRDO outperforms 94.37% of its industry peers.
• In the last couple of years the Profit Margin of PRDO has grown nicely.
• PRDO has a Operating Margin of 26.23%. This is amongst the best in the industry. PRDO outperforms 95.77% of its industry peers.
• PRDO's Operating Margin has improved in the last couple of years.
• PRDO has a better Gross Margin (82.26%) than 92.96% of its industry peers.

How do we evaluate the Health for PRDO?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. PRDO has earned a 8 out of 10:

• PRDO has an Altman-Z score of 5.86. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of PRDO (5.86) is better than 90.14% of its industry peers.
• The Debt to FCF ratio of PRDO is 0.47, which is an excellent value as it means it would take PRDO, only 0.47 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.47, PRDO belongs to the top of the industry, outperforming 85.92% of the companies in the same industry.
• PRDO has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.07, PRDO is in the better half of the industry, outperforming 60.56% of the companies in the same industry.
• PRDO has a Current Ratio of 4.84. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
• PRDO's Current ratio of 4.84 is amongst the best of the industry. PRDO outperforms 90.14% of its industry peers.
• A Quick Ratio of 4.82 indicates that PRDO has no problem at all paying its short term obligations.
• The Quick ratio of PRDO (4.82) is better than 90.14% of its industry peers.

Growth Examination for PRDO

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of PRDO, the assigned 5 reflects its growth potential:

• The Earnings Per Share has grown by an nice 9.05% over the past year.
• Measured over the past years, PRDO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.19% on average per year.
• Based on estimates for the next years, PRDO will show a quite strong growth in Revenue. The Revenue will grow by 14.00% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of PRDO contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.