GRAND CANYON EDUCATION INC (LOPE) Stock Fundamental Analysis
NASDAQ:LOPE - Nasdaq - US38526M1062 - Common Stock - Currency: USD
Taking everything into account, LOPE scores 7 out of 10 in our fundamental rating. LOPE was compared to 70 industry peers in the Diversified Consumer Services industry. LOPE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LOPE has a decent growth rate and is not valued too expensively. This makes LOPE very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year LOPE was profitable.
LOPE had a positive operating cash flow in the past year.
LOPE had positive earnings in each of the past 5 years.
Each year in the past 5 years LOPE had a positive operating cash flow.
1.2 Ratios
LOPE's Return On Assets of 22.28% is amongst the best of the industry. LOPE outperforms 98.57% of its industry peers.
Looking at the Return On Equity, with a value of 29.44%, LOPE belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Return On Invested Capital of LOPE (24.44%) is better than 97.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LOPE is significantly above the industry average of 10.94%.
The 3 year average ROIC (24.24%) for LOPE is below the current ROIC(24.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.28% | ||
| ROE | 29.44% | ||
| ROIC | 24.44% |
ROA(3y)22.14%
ROA(5y)20.33%
ROE(3y)28.79%
ROE(5y)25.52%
ROIC(3y)24.24%
ROIC(5y)20.99%
1.3 Margins
With an excellent Profit Margin value of 21.94%, LOPE belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
In the last couple of years the Profit Margin of LOPE has declined.
With an excellent Operating Margin value of 26.91%, LOPE belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
In the last couple of years the Operating Margin of LOPE has declined.
LOPE has a Gross Margin (52.75%) which is in line with its industry peers.
LOPE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.91% | ||
| PM (TTM) | 21.94% | ||
| GM | 52.75% |
OM growth 3Y-5.17%
OM growth 5Y-4.93%
PM growth 3Y-8.97%
PM growth 5Y-8.03%
GM growth 3Y-2.85%
GM growth 5YN/A
2. Health
2.1 Basic Checks
LOPE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
LOPE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for LOPE has been reduced compared to 5 years ago.
LOPE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
LOPE has an Altman-Z score of 18.40. This indicates that LOPE is financially healthy and has little risk of bankruptcy at the moment.
LOPE has a Altman-Z score of 18.40. This is amongst the best in the industry. LOPE outperforms 95.71% of its industry peers.
LOPE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.4 |
ROIC/WACC2.69
WACC9.1%
2.3 Liquidity
LOPE has a Current Ratio of 3.40. This indicates that LOPE is financially healthy and has no problem in meeting its short term obligations.
LOPE has a Current ratio of 3.40. This is amongst the best in the industry. LOPE outperforms 90.00% of its industry peers.
A Quick Ratio of 3.40 indicates that LOPE has no problem at all paying its short term obligations.
LOPE has a better Quick ratio (3.40) than 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 3.4 |
3. Growth
3.1 Past
LOPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.91%, which is quite good.
Measured over the past 5 years, LOPE shows a small growth in Earnings Per Share. The EPS has been growing by 7.60% on average per year.
The Revenue has been growing slightly by 6.31% in the past year.
LOPE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.82% yearly.
EPS 1Y (TTM)11.91%
EPS 3Y9.93%
EPS 5Y7.6%
EPS Q2Q%9.36%
Revenue 1Y (TTM)6.31%
Revenue growth 3Y4.84%
Revenue growth 5Y5.82%
Sales Q2Q%5.33%
3.2 Future
LOPE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.67% yearly.
The Revenue is expected to grow by 6.36% on average over the next years.
EPS Next Y10.87%
EPS Next 2Y10.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.99%
Revenue Next 2Y6.36%
Revenue Next 3YN/A
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 22.45, which indicates a rather expensive current valuation of LOPE.
Based on the Price/Earnings ratio, LOPE is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
LOPE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.57.
With a Price/Forward Earnings ratio of 18.83, LOPE is valued on the expensive side.
LOPE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LOPE is cheaper than 67.14% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, LOPE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
LOPE's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LOPE indicates a somewhat cheap valuation: LOPE is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | 15.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LOPE does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of LOPE may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.95
EPS Next 2Y10.67%
EPS Next 3YN/A
5. Dividend
5.1 Amount
LOPE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
185.66
-1.03 (-0.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners101.27%
Inst Owner Change3.05%
Ins Owners2.08%
Ins Owner Change-1.96%
Market Cap5.27B
Analysts86.67
Price Target221.68 (19.4%)
Short Float %1.18%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.63%
Min EPS beat(2)-1.52%
Max EPS beat(2)0.25%
EPS beat(4)2
Avg EPS beat(4)2.66%
Min EPS beat(4)-1.52%
Max EPS beat(4)13.19%
EPS beat(8)5
Avg EPS beat(8)4.81%
EPS beat(12)7
Avg EPS beat(12)4.61%
EPS beat(16)8
Avg EPS beat(16)3.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-2.54%
Max Revenue beat(4)-0.17%
Revenue beat(8)0
Avg Revenue beat(8)-1.07%
Revenue beat(12)0
Avg Revenue beat(12)-1.29%
Revenue beat(16)0
Avg Revenue beat(16)-1.6%
PT rev (1m)9.03%
PT rev (3m)7.06%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)4.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 18.83 | ||
| P/S | 5.03 | ||
| P/FCF | 22.41 | ||
| P/OCF | 19.32 | ||
| P/B | 6.75 | ||
| P/tB | 11.4 | ||
| EV/EBITDA | 15.13 |
EPS(TTM)8.27
EY4.45%
EPS(NY)9.86
Fwd EY5.31%
FCF(TTM)8.29
FCFY4.46%
OCF(TTM)9.61
OCFY5.18%
SpS36.93
BVpS27.52
TBVpS16.29
PEG (NY)2.07
PEG (5Y)2.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.28% | ||
| ROE | 29.44% | ||
| ROCE | 31.21% | ||
| ROIC | 24.44% | ||
| ROICexc | 36.88% | ||
| ROICexgc | 78.85% | ||
| OM | 26.91% | ||
| PM (TTM) | 21.94% | ||
| GM | 52.75% | ||
| FCFM | 22.44% |
ROA(3y)22.14%
ROA(5y)20.33%
ROE(3y)28.79%
ROE(5y)25.52%
ROIC(3y)24.24%
ROIC(5y)20.99%
ROICexc(3y)34.71%
ROICexc(5y)32.22%
ROICexgc(3y)81.65%
ROICexgc(5y)77.73%
ROCE(3y)30.95%
ROCE(5y)26.8%
ROICexcg growth 3Y-12.63%
ROICexcg growth 5Y33.74%
ROICexc growth 3Y-4.05%
ROICexc growth 5Y20.74%
OM growth 3Y-5.17%
OM growth 5Y-4.93%
PM growth 3Y-8.97%
PM growth 5Y-8.03%
GM growth 3Y-2.85%
GM growth 5YN/A
F-Score9
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 100.6% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 140970 | ||
| Cash Conversion | 85.38% | ||
| Profit Quality | 102.27% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 3.4 | ||
| Altman-Z | 18.4 |
F-Score9
WACC9.1%
ROIC/WACC2.69
Cap/Depr(3y)119.8%
Cap/Depr(5y)287.03%
Cap/Sales(3y)4.09%
Cap/Sales(5y)9.84%
Profit Quality(3y)102.83%
Profit Quality(5y)84.76%
High Growth Momentum
Growth
EPS 1Y (TTM)11.91%
EPS 3Y9.93%
EPS 5Y7.6%
EPS Q2Q%9.36%
EPS Next Y10.87%
EPS Next 2Y10.67%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.31%
Revenue growth 3Y4.84%
Revenue growth 5Y5.82%
Sales Q2Q%5.33%
Revenue Next Year5.99%
Revenue Next 2Y6.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.75%
EBIT growth 3Y-0.58%
EBIT growth 5Y0.6%
EBIT Next Year25.83%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y33.57%
FCF growth 3Y39.11%
FCF growth 5Y17.26%
OCF growth 1Y27.66%
OCF growth 3Y-2.53%
OCF growth 5Y-1.09%