LAUREATE EDUCATION INC (LAUR) Stock Fundamental Analysis
NASDAQ:LAUR - Nasdaq - US5186132032 - Common Stock - Currency: USD
Taking everything into account, LAUR scores 6 out of 10 in our fundamental rating. LAUR was compared to 73 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making LAUR a very profitable company, without any liquidiy or solvency issues. LAUR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
LAUR had positive earnings in the past year.
In the past year LAUR had a positive cash flow from operations.
LAUR had positive earnings in 4 of the past 5 years.
In the past 5 years LAUR always reported a positive cash flow from operatings.
1.2 Ratios
LAUR's Return On Assets of 15.92% is amongst the best of the industry. LAUR outperforms 93.15% of its industry peers.
With an excellent Return On Equity value of 30.90%, LAUR belongs to the best of the industry, outperforming 91.78% of the companies in the same industry.
The Return On Invested Capital of LAUR (14.67%) is better than 91.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LAUR is in line with the industry average of 11.99%.
The 3 year average ROIC (12.20%) for LAUR is below the current ROIC(14.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 30.9% | ||
| ROIC | 14.67% |
ROA(3y)8.17%
ROA(5y)4.18%
ROE(3y)17.06%
ROE(5y)8.23%
ROIC(3y)12.2%
ROIC(5y)7.82%
1.3 Margins
Looking at the Profit Margin, with a value of 18.92%, LAUR belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
In the last couple of years the Profit Margin of LAUR has declined.
The Operating Margin of LAUR (23.87%) is better than 93.15% of its industry peers.
LAUR's Operating Margin has improved in the last couple of years.
LAUR has a Gross Margin of 26.79%. This is in the lower half of the industry: LAUR underperforms 68.49% of its industry peers.
In the last couple of years the Gross Margin of LAUR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.87% | ||
| PM (TTM) | 18.92% | ||
| GM | 26.79% |
OM growth 3Y56.41%
OM growth 5Y51.46%
PM growth 3Y2.16%
PM growth 5Y-24.55%
GM growth 3Y0.61%
GM growth 5Y6.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LAUR is creating some value.
Compared to 1 year ago, LAUR has less shares outstanding
The number of shares outstanding for LAUR has been reduced compared to 5 years ago.
Compared to 1 year ago, LAUR has an improved debt to assets ratio.
2.2 Solvency
LAUR has an Altman-Z score of 3.68. This indicates that LAUR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.68, LAUR belongs to the top of the industry, outperforming 80.82% of the companies in the same industry.
The Debt to FCF ratio of LAUR is 0.62, which is an excellent value as it means it would take LAUR, only 0.62 years of fcf income to pay off all of its debts.
LAUR has a Debt to FCF ratio of 0.62. This is amongst the best in the industry. LAUR outperforms 86.30% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that LAUR is not too dependend on debt financing.
LAUR's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. LAUR outperforms 61.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.62
WACC9.08%
2.3 Liquidity
A Current Ratio of 0.62 indicates that LAUR may have some problems paying its short term obligations.
LAUR has a Current ratio of 0.62. This is in the lower half of the industry: LAUR underperforms 71.23% of its industry peers.
A Quick Ratio of 0.62 indicates that LAUR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, LAUR is doing worse than 69.86% of the companies in the same industry.
The current and quick ratio evaluation for LAUR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 146.75% over the past year.
Measured over the past years, LAUR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.27% on average per year.
The Revenue has been growing slightly by 5.55% in the past year.
LAUR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.27% yearly.
EPS 1Y (TTM)146.75%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)5.55%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%-14.23%
3.2 Future
Based on estimates for the next years, LAUR will show a small growth in Earnings Per Share. The EPS will grow by 1.52% on average per year.
LAUR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.22% yearly.
EPS Next Y-15.88%
EPS Next 2Y-3.62%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year0.69%
Revenue Next 2Y3.71%
Revenue Next 3Y5.22%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.73, the valuation of LAUR can be described as very reasonable.
Based on the Price/Earnings ratio, LAUR is valued cheaply inside the industry as 87.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.22. LAUR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.37, LAUR is valued correctly.
Based on the Price/Forward Earnings ratio, LAUR is valued cheaply inside the industry as 86.30% of the companies are valued more expensively.
LAUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAUR is valued cheaper than 80.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LAUR is valued a bit cheaper than the industry average as 76.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.64 | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
The excellent profitability rating of LAUR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.62%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
LAUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.29
+1.65 (+7.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners88.01%
Inst Owner Change-0.12%
Ins Owners1.34%
Ins Owner Change-13.13%
Market Cap3.32B
Analysts82
Price Target24.1 (8.12%)
Short Float %2.25%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)143.93%
Min EPS beat(2)44.72%
Max EPS beat(2)243.14%
EPS beat(4)3
Avg EPS beat(4)47.07%
Min EPS beat(4)-128.76%
Max EPS beat(4)243.14%
EPS beat(8)4
Avg EPS beat(8)0.96%
EPS beat(12)5
Avg EPS beat(12)-14.43%
EPS beat(16)7
Avg EPS beat(16)-26.02%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.87%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)1.18%
Revenue beat(8)6
Avg Revenue beat(8)1.7%
Revenue beat(12)10
Avg Revenue beat(12)1.77%
Revenue beat(16)13
Avg Revenue beat(16)1.81%
PT rev (1m)3.47%
PT rev (3m)18.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-366.67%
EPS NY rev (1m)2.24%
EPS NY rev (3m)13.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.76%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 12.37 | ||
| P/S | 2.12 | ||
| P/FCF | 20.64 | ||
| P/OCF | 14.27 | ||
| P/B | 3.46 | ||
| P/tB | 13.39 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)1.9
EY8.52%
EPS(NY)1.8
Fwd EY8.08%
FCF(TTM)1.08
FCFY4.85%
OCF(TTM)1.56
OCFY7.01%
SpS10.5
BVpS6.43
TBVpS1.66
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 30.9% | ||
| ROCE | 25.03% | ||
| ROIC | 14.67% | ||
| ROICexc | 15.62% | ||
| ROICexgc | 31.7% | ||
| OM | 23.87% | ||
| PM (TTM) | 18.92% | ||
| GM | 26.79% | ||
| FCFM | 10.28% |
ROA(3y)8.17%
ROA(5y)4.18%
ROE(3y)17.06%
ROE(5y)8.23%
ROIC(3y)12.2%
ROIC(5y)7.82%
ROICexc(3y)12.93%
ROICexc(5y)8.36%
ROICexgc(3y)26.3%
ROICexgc(5y)16.84%
ROCE(3y)20.82%
ROCE(5y)13.34%
ROICexcg growth 3Y87.4%
ROICexcg growth 5Y128.92%
ROICexc growth 3Y81.26%
ROICexc growth 5Y108.69%
OM growth 3Y56.41%
OM growth 5Y51.46%
PM growth 3Y2.16%
PM growth 5Y-24.55%
GM growth 3Y0.61%
GM growth 5Y6.18%
F-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.62 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 105.34% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 22.54 | ||
| Cash Conversion | 52.69% | ||
| Profit Quality | 54.34% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.68 |
F-Score8
WACC9.08%
ROIC/WACC1.62
Cap/Depr(3y)91.92%
Cap/Depr(5y)75.51%
Cap/Sales(3y)4.21%
Cap/Sales(5y)4.91%
Profit Quality(3y)138.23%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)146.75%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-57.14%
EPS Next Y-15.88%
EPS Next 2Y-3.62%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue 1Y (TTM)5.55%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%-14.23%
Revenue Next Year0.69%
Revenue Next 2Y3.71%
Revenue Next 3Y5.22%
Revenue Next 5YN/A
EBIT growth 1Y9.4%
EBIT growth 3Y76.69%
EBIT growth 5Y59.44%
EBIT Next Year28.26%
EBIT Next 3Y15.49%
EBIT Next 5YN/A
FCF growth 1Y-16.89%
FCF growth 3Y25.45%
FCF growth 5Y-15.26%
OCF growth 1Y-6.91%
OCF growth 3Y20.85%
OCF growth 5Y-14.97%