LAUREATE EDUCATION INC (LAUR) Stock Fundamental Analysis
NASDAQ:LAUR - Nasdaq - US5186132032 - Common Stock - Currency: USD
Overall LAUR gets a fundamental rating of 6 out of 10. We evaluated LAUR against 72 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on LAUR. This makes LAUR very considerable for value investing!
1. Profitability
1.1 Basic Checks
LAUR had positive earnings in the past year.
LAUR had a positive operating cash flow in the past year.
Of the past 5 years LAUR 4 years were profitable.
LAUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LAUR's Return On Assets of 15.48% is amongst the best of the industry. LAUR outperforms 94.44% of its industry peers.
The Return On Equity of LAUR (31.67%) is better than 91.67% of its industry peers.
With an excellent Return On Invested Capital value of 14.01%, LAUR belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LAUR is in line with the industry average of 10.94%.
The last Return On Invested Capital (14.01%) for LAUR is above the 3 year average (12.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.48% | ||
| ROE | 31.67% | ||
| ROIC | 14.01% |
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
The Profit Margin of LAUR (18.84%) is better than 91.67% of its industry peers.
LAUR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.89%, LAUR belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of LAUR has grown nicely.
LAUR has a Gross Margin of 25.94%. This is in the lower half of the industry: LAUR underperforms 69.44% of its industry peers.
LAUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.89% | ||
| PM (TTM) | 18.84% | ||
| GM | 25.94% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LAUR is destroying value.
The number of shares outstanding for LAUR has been reduced compared to 1 year ago.
LAUR has less shares outstanding than it did 5 years ago.
LAUR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.59 indicates that LAUR is not in any danger for bankruptcy at the moment.
LAUR has a Altman-Z score of 3.59. This is in the better half of the industry: LAUR outperforms 75.00% of its industry peers.
The Debt to FCF ratio of LAUR is 0.58, which is an excellent value as it means it would take LAUR, only 0.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.58, LAUR belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Debt/Equity ratio of 0.10 indicates that LAUR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.10, LAUR is in line with its industry, outperforming 59.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.89
WACC15.67%
2.3 Liquidity
A Current Ratio of 0.58 indicates that LAUR may have some problems paying its short term obligations.
LAUR's Current ratio of 0.58 is on the low side compared to the rest of the industry. LAUR is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.58 indicates that LAUR may have some problems paying its short term obligations.
LAUR's Quick ratio of 0.58 is on the low side compared to the rest of the industry. LAUR is outperformed by 75.00% 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 | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.16% 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.
Looking at the last year, LAUR shows a small growth in Revenue. The Revenue has grown by 1.26% in the last year.
The Revenue has been growing slightly by 5.27% on average over the past years.
EPS 1Y (TTM)144.16%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%-14.23%
3.2 Future
The Earnings Per Share is expected to grow by 1.52% on average over the next years.
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-14.04%
EPS Next 2Y-1.24%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y4.44%
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
The Price/Earnings ratio is 11.77, which indicates a very decent valuation of LAUR.
Based on the Price/Earnings ratio, LAUR is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
LAUR is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.69, which indicates a very decent valuation of LAUR.
LAUR's Price/Forward Earnings ratio is rather cheap when compared to the industry. LAUR is cheaper than 90.28% of the companies in the same industry.
LAUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 11.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAUR is valued cheaper than 83.33% 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 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 7.12 |
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-1.24%
EPS Next 3Y1.52%
5. Dividend
5.1 Amount
No dividends for LAUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.12
+0.07 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners89.8%
Inst Owner Change2.59%
Ins Owners0.92%
Ins Owner Change-12.61%
Market Cap3.29B
Analysts82
Price Target24.61 (11.26%)
Short Float %2.3%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.17%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.84%
Min EPS beat(2)8.96%
Max EPS beat(2)44.72%
EPS beat(4)4
Avg EPS beat(4)81.5%
Min EPS beat(4)8.96%
Max EPS beat(4)243.14%
EPS beat(8)5
Avg EPS beat(8)19.34%
EPS beat(12)6
Avg EPS beat(12)-2.56%
EPS beat(16)8
Avg EPS beat(16)-20.29%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)0.87%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.92%
Revenue beat(8)6
Avg Revenue beat(8)1.35%
Revenue beat(12)10
Avg Revenue beat(12)1.76%
Revenue beat(16)13
Avg Revenue beat(16)1.99%
PT rev (1m)0%
PT rev (3m)5.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)2.19%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 11.69 | ||
| P/S | 2.16 | ||
| P/FCF | 16.77 | ||
| P/OCF | 12.81 | ||
| P/B | 3.62 | ||
| P/tB | 16.98 | ||
| EV/EBITDA | 7.12 |
EPS(TTM)1.88
EY8.5%
EPS(NY)1.89
Fwd EY8.55%
FCF(TTM)1.32
FCFY5.96%
OCF(TTM)1.73
OCFY7.81%
SpS10.26
BVpS6.11
TBVpS1.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.48% | ||
| ROE | 31.67% | ||
| ROCE | 23.91% | ||
| ROIC | 14.01% | ||
| ROICexc | 15.15% | ||
| ROICexgc | 32.12% | ||
| OM | 22.89% | ||
| PM (TTM) | 18.84% | ||
| GM | 25.94% | ||
| FCFM | 12.85% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.2 | ||
| Cap/Depr | 54.43% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.73% | ||
| Profit Quality | 68.23% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.59 |
F-Score8
WACC15.67%
ROIC/WACC0.89
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)144.16%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-85.71%
EPS Next Y-14.04%
EPS Next 2Y-1.24%
EPS Next 3Y1.52%
EPS Next 5YN/A
Revenue 1Y (TTM)1.26%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%-14.23%
Revenue Next Year1.2%
Revenue Next 2Y4.44%
Revenue Next 3Y5.22%
Revenue Next 5YN/A
EBIT growth 1Y3.64%
EBIT growth 3Y76.69%
EBIT growth 5Y59.44%
EBIT Next Year29.55%
EBIT Next 3Y15.49%
EBIT Next 5YN/A
FCF growth 1Y110.2%
FCF growth 3Y25.45%
FCF growth 5Y-15.26%
OCF growth 1Y70.39%
OCF growth 3Y20.85%
OCF growth 5Y-14.97%