PERDOCEO EDUCATION CORP (NASDAQ:PRDO) – An Undervalued Stock With Strong Fundamentals
By Mill Chart
Last update: Jul 14, 2025
PERDOCEO EDUCATION CORP (NASDAQ:PRDO) was identified by our Decent Value stock screener as a potentially undervalued opportunity. The company operates in the education sector, offering career-focused programs through institutions like Colorado Technical University and American InterContinental University. PRDO stands out with solid profitability, financial health, and reasonable growth—all while trading at an attractive valuation.
Valuation Highlights
PRDO appears undervalued compared to both its industry and the broader market:
- P/E Ratio of 12.26 – Below the industry average of 28.25 and the S&P 500’s 27.41.
- Forward P/E of 10.80 – Suggests earnings growth is not fully priced in.
- Enterprise Value/EBITDA – Ranks better than 93% of peers, indicating a discount.
- Price/Free Cash Flow – More favorable than 89% of competitors.
Strong Profitability
The company excels in profitability metrics:
- 20.91% Profit Margin – Outperforms 93% of industry peers.
- 25.14% Operating Margin – Among the best in its sector.
- ROIC of 12.29% – Above the industry average, indicating efficient capital use.
Financial Health
PRDO maintains a robust balance sheet:
- Debt/Equity Ratio of 0.01 – Minimal leverage compared to peers.
- Current Ratio of 4.46 – Strong liquidity, well above industry standards.
- Altman-Z Score of 6.11 – Low bankruptcy risk.
Growth Prospects
While not explosive, growth remains steady:
- EPS Growth (Past Year): 12.74% – Healthy earnings expansion.
- Expected Revenue Growth: 14% Annually – Indicates improving demand.
- Stable Dividend – A 1.76% yield with a sustainable payout ratio.
For a deeper look, review the full fundamental analysis of PRDO.
Our Decent Value screener lists more stocks with similar characteristics and is updated daily.
Disclaimer
This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.
