PERDOCEO EDUCATION CORP (NASDAQ:PRDO) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Uncover the hidden value in PERDOCEO EDUCATION CORP (NASDAQ:PRDO) as our stock screening tool recommends it as an undervalued choice. PRDO maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

A Closer Look at Valuation for PRDO

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. PRDO has received a 8 out of 10:

• A Price/Earnings ratio of 10.53 indicates a reasonable valuation of PRDO.
• 89.04% of the companies in the same industry are more expensive than PRDO, based on the Price/Earnings ratio.
• Compared to an average S&P500 Price/Earnings ratio of 27.85, PRDO is valued rather cheaply.
• The Price/Forward Earnings ratio is 9.49, which indicates a very decent valuation of PRDO.
• 94.52% of the companies in the same industry are more expensive than PRDO, based on the Price/Forward Earnings ratio.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, PRDO is valued rather cheaply.
• Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaper than 91.78% of the companies 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 91.78% of the companies listed in the same industry.
• The excellent profitability rating of PRDO may justify a higher PE ratio.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of PRDO, the assigned 8 is noteworthy for profitability:

• PRDO's Return On Assets of 11.93% is amongst the best of the industry. PRDO outperforms 89.04% of its industry peers.
• With an excellent Return On Equity value of 15.38%, PRDO belongs to the best of the industry, outperforming 80.82% of the companies in the same industry.
• PRDO's Return On Invested Capital of 12.14% is amongst the best of the industry. PRDO outperforms 87.67% of its industry peers.
• PRDO's Profit Margin of 21.66% is amongst the best of the industry. PRDO outperforms 95.89% of its industry peers.
• In the last couple of years the Profit Margin of PRDO has grown nicely.
• PRDO's Operating Margin of 26.23% is amongst the best of the industry. PRDO outperforms 95.89% of its industry peers.
• In the last couple of years the Operating Margin of PRDO has grown nicely.
• PRDO has a Gross Margin of 82.26%. This is amongst the best in the industry. PRDO outperforms 93.15% of its industry peers.

Assessing Health Metrics 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 5.76. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.76, PRDO belongs to the top of the industry, outperforming 87.67% of the companies in the same industry.
• 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.
• With an excellent Debt to FCF ratio value of 0.47, PRDO belongs to the best of the industry, outperforming 87.67% of the companies in the same industry.
• A Debt/Equity ratio of 0.07 indicates that PRDO is not too dependend on debt financing.
• The Debt to Equity ratio of PRDO (0.07) is better than 60.27% of its industry peers.
• A Current Ratio of 4.84 indicates that PRDO has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 4.84, PRDO belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
• PRDO has a Quick Ratio of 4.82. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
• PRDO has a better Quick ratio (4.82) than 90.41% of its industry peers.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. PRDO has earned a 5 for growth:

• The Earnings Per Share has grown by an nice 12.74% over the past year.
• The Earnings Per Share has been growing by 10.19% on average over the past years. This is quite good.
• The Revenue is expected to grow by 14.00% on average over the next years. This is quite good.
• 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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.