LAUREATE EDUCATION INC (LAUR)
US5186132032 - Common Stock
Taking everything into account, LAUR scores 7 out of 10 in our fundamental rating. LAUR was compared to 65 industry peers in the Diversified Consumer Services industry. LAUR scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: LAUR is growing strongly while it also seems undervalued. This makes LAUR very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year LAUR was profitable.
In the past year LAUR had a positive cash flow from operations.
LAUR had positive earnings in 4 of the past 5 years.
LAUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LAUR's Return On Assets of 5.06% is amongst the best of the industry. LAUR outperforms 82.81% of its industry peers.
LAUR has a better Return On Equity (11.33%) than 82.81% of its industry peers.
With an excellent Return On Invested Capital value of 16.15%, LAUR belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LAUR is below the industry average of 14.87%.
The last Return On Invested Capital (16.15%) for LAUR is above the 3 year average (10.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 11.33% | ||
| ROIC | 16.15% |
ROA(3y)5.77%
ROA(5y)3.88%
ROE(3y)12.4%
ROE(5y)8.72%
ROIC(3y)10.83%
ROIC(5y)6.69%
1.3 Margins
Looking at the Profit Margin, with a value of 7.25%, LAUR is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of LAUR has declined.
Looking at the Operating Margin, with a value of 23.03%, LAUR belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
LAUR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.58%, LAUR is not doing good in the industry: 79.69% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LAUR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.03% | ||
| PM (TTM) | 7.25% | ||
| GM | 26.58% |
OM growth 3Y118.28%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-26.29%
GM growth 3Y9.14%
GM growth 5Y11.91%
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.
The number of shares outstanding for LAUR has been increased compared to 1 year ago.
LAUR has less shares outstanding than it did 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 2.30. This is not the best score and indicates that LAUR is in the grey zone with still only limited risk for bankruptcy at the moment.
LAUR has a Altman-Z score of 2.30. This is in the better half of the industry: LAUR outperforms 68.75% of its industry peers.
The Debt to FCF ratio of LAUR is 0.85, which is an excellent value as it means it would take LAUR, only 0.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.85, LAUR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that LAUR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.12, LAUR perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.85 | ||
| Altman-Z | 2.3 |
ROIC/WACC1.76
WACC9.17%
2.3 Liquidity
A Current Ratio of 0.50 indicates that LAUR may have some problems paying its short term obligations.
LAUR has a worse Current ratio (0.50) than 87.50% of its industry peers.
A Quick Ratio of 0.50 indicates that LAUR may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, LAUR is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
LAUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.27%, which is quite impressive.
LAUR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.06% yearly.
The Revenue has grown by 19.48% in the past year. This is quite good.
LAUR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.34% yearly.
EPS 1Y (TTM)52.27%
EPS 3YN/A
EPS 5Y24.06%
EPS growth Q2Q4%
Revenue 1Y (TTM)19.48%
Revenue growth 3Y13.14%
Revenue growth 5Y5.34%
Revenue growth Q2Q18.23%
3.2 Future
The Earnings Per Share is expected to grow by 55.09% on average over the next years. This is a very strong growth
Based on estimates for the next years, LAUR will show a quite strong growth in Revenue. The Revenue will grow by 9.38% on average per year.
EPS Next Y111.61%
EPS Next 2Y55.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y7.21%
Revenue Next 3Y9.59%
Revenue Next 5Y9.38%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.33, which indicates a rather expensive current valuation of LAUR.
Based on the Price/Earnings ratio, LAUR is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.55. LAUR is around the same levels.
LAUR is valuated reasonably with a Price/Forward Earnings ratio of 10.08.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LAUR indicates a rather cheap valuation: LAUR is cheaper than 87.50% of the companies listed in the same industry.
LAUR is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAUR is valued cheaper than 84.38% of the companies in the same industry.
LAUR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. LAUR is cheaper than 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.62 | ||
| EV/EBITDA | 5.77 |
4.3 Compensation for Growth
LAUR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LAUR may justify a higher PE ratio.
LAUR's earnings are expected to grow with 55.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)0.89
EPS Next 2Y55.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.73%, LAUR is a good candidate for dividend investing.
LAUR's Dividend Yield is rather good when compared to the industry average which is at 29.10. LAUR pays more dividend than 98.44% of the companies in the same industry.
LAUR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
5.2 History
The dividend of LAUR is nicely growing with an annual growth rate of 67.71%!
LAUR has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)67.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
104.47% of the earnings are spent on dividend by LAUR. This is not a sustainable payout ratio.
The dividend of LAUR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP104.47%
EPS Next 2Y55.09%
EPS Next 3YN/A
LAUREATE EDUCATION INC
NASDAQ:LAUR (5/2/2024, 12:20:26 PM)
14.29
-0.3 (-2.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.73% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.33 | ||
| Fwd PE | 10.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.19
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 11.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.03% | ||
| PM (TTM) | 7.25% | ||
| GM | 26.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)52.27%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y111.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)19.48%
Revenue growth 3Y13.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y