LAUREATE EDUCATION INC (LAUR) Stock Fundamental Analysis
NASDAQ:LAUR - Nasdaq - US5186132032 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to LAUR. LAUR was compared to 71 industry peers in the Diversified Consumer Services industry. LAUR gets an excellent profitability rating and is at the same time showing great financial health properties. LAUR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LAUR was profitable.
LAUR had a positive operating cash flow in the past year.
Of the past 5 years LAUR 4 years were profitable.
Each year in the past 5 years LAUR had a positive operating cash flow.
1.2 Ratios
LAUR has a better Return On Assets (12.51%) than 88.73% of its industry peers.
LAUR's Return On Equity of 24.22% is amongst the best of the industry. LAUR outperforms 91.55% of its industry peers.
LAUR has a Return On Invested Capital of 13.76%. This is amongst the best in the industry. LAUR outperforms 91.55% of its industry peers.
LAUR had an Average Return On Invested Capital over the past 3 years of 12.20%. This is above the industry average of 10.20%.
The 3 year average ROIC (12.20%) for LAUR is below the current ROIC(13.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | 24.22% | ||
| ROIC | 13.76% |
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
With an excellent Profit Margin value of 16.41%, LAUR belongs to the best of the industry, outperforming 90.14% 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 (24.25%) is better than 92.96% of its industry peers.
LAUR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 27.23%, LAUR is not doing good in the industry: 66.20% of the companies in the same industry are doing better.
LAUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.25% | ||
| PM (TTM) | 16.41% | ||
| GM | 27.23% |
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.
LAUR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LAUR has less shares outstanding
LAUR has a better debt/assets ratio than last year.
2.2 Solvency
LAUR has an Altman-Z score of 3.87. This indicates that LAUR is financially healthy and has little risk of bankruptcy at the moment.
LAUR has a better Altman-Z score (3.87) than 81.69% of its industry peers.
The Debt to FCF ratio of LAUR is 0.50, which is an excellent value as it means it would take LAUR, only 0.50 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.50, LAUR belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
LAUR 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, LAUR is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.56
WACC8.83%
2.3 Liquidity
LAUR has a Current Ratio of 0.75. This is a bad value and indicates that LAUR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of LAUR (0.75) is worse than 67.61% of its industry peers.
LAUR has a Quick Ratio of 0.75. This is a bad value and indicates that LAUR is not financially healthy enough and could expect problems in meeting its short term obligations.
LAUR's Quick ratio of 0.75 is on the low side compared to the rest of the industry. LAUR is outperformed by 67.61% of its industry peers.
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 | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
LAUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.00%, which is quite impressive.
LAUR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.27% yearly.
The Revenue has been growing slightly by 0.44% in the past year.
The Revenue has been growing slightly by 5.27% on average over the past years.
EPS 1Y (TTM)36%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-21.69%
Revenue 1Y (TTM)0.44%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%5%
3.2 Future
The Earnings Per Share is expected to grow by 2.70% on average over the next years.
The Revenue is expected to grow by 6.03% on average over the next years.
EPS Next Y-13.12%
EPS Next 2Y-2.18%
EPS Next 3Y2.7%
EPS Next 5YN/A
Revenue Next Year2.02%
Revenue Next 2Y4.92%
Revenue Next 3Y6.03%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
LAUR is valuated correctly with a Price/Earnings ratio of 15.18.
LAUR's Price/Earnings ratio is a bit cheaper when compared to the industry. LAUR is cheaper than 78.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.93, LAUR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.90, the valuation of LAUR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LAUR indicates a somewhat cheap valuation: LAUR is cheaper than 76.06% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LAUR to the average of the S&P500 Index (35.31), we can say LAUR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAUR is valued a bit cheaper than 74.65% 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 77.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 8 |
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-2.18%
EPS Next 3Y2.7%
5. Dividend
5.1 Amount
No dividends for LAUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.8
-0.15 (-0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners89.91%
Inst Owner Change1.06%
Ins Owners0.92%
Ins Owner Change-13.62%
Market Cap3.84B
Analysts82
Price Target28.56 (10.7%)
Short Float %2.21%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-11.49%
Max EPS beat(2)8.96%
EPS beat(4)3
Avg EPS beat(4)71.33%
Min EPS beat(4)-11.49%
Max EPS beat(4)243.14%
EPS beat(8)5
Avg EPS beat(8)22.16%
EPS beat(12)6
Avg EPS beat(12)-0.05%
EPS beat(16)7
Avg EPS beat(16)-26.54%
Revenue beat(2)2
Avg Revenue beat(2)2.64%
Min Revenue beat(2)2.37%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.92%
Revenue beat(8)6
Avg Revenue beat(8)1.19%
Revenue beat(12)10
Avg Revenue beat(12)1.8%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)16.06%
PT rev (3m)16.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.52%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 13.9 | ||
| P/S | 2.47 | ||
| P/FCF | 16.88 | ||
| P/OCF | 13.21 | ||
| P/B | 3.65 | ||
| P/tB | 13.14 | ||
| EV/EBITDA | 8 |
EPS(TTM)1.7
EY6.59%
EPS(NY)1.86
Fwd EY7.2%
FCF(TTM)1.53
FCFY5.92%
OCF(TTM)1.95
OCFY7.57%
SpS10.43
BVpS7.07
TBVpS1.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | 24.22% | ||
| ROCE | 23.48% | ||
| ROIC | 13.76% | ||
| ROICexc | 15.03% | ||
| ROICexgc | 31.15% | ||
| OM | 24.25% | ||
| PM (TTM) | 16.41% | ||
| GM | 27.23% | ||
| FCFM | 14.65% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 62.71% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.91% | ||
| Profit Quality | 89.31% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 3.87 |
F-Score8
WACC8.83%
ROIC/WACC1.56
Cap/Depr(3y)70.85%
Cap/Depr(5y)62.87%
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)36%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-21.69%
EPS Next Y-13.12%
EPS Next 2Y-2.18%
EPS Next 3Y2.7%
EPS Next 5YN/A
Revenue 1Y (TTM)0.44%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%5%
Revenue Next Year2.02%
Revenue Next 2Y4.92%
Revenue Next 3Y6.03%
Revenue Next 5YN/A
EBIT growth 1Y8.2%
EBIT growth 3Y76.69%
EBIT growth 5Y59.44%
EBIT Next Year31.35%
EBIT Next 3Y16.81%
EBIT Next 5YN/A
FCF growth 1Y50.44%
FCF growth 3Y25.45%
FCF growth 5Y-15.26%
OCF growth 1Y37.86%
OCF growth 3Y20.85%
OCF growth 5Y-14.97%