GRAND CANYON EDUCATION INC (LOPE)
US38526M1062 - Common Stock
We assign a fundamental rating of 7 out of 10 to LOPE. LOPE was compared to 66 industry peers in the Diversified Consumer Services industry. LOPE gets an excellent profitability rating and is at the same time showing great financial health properties. LOPE has a correct valuation and a medium growth rate. These ratings would make LOPE suitable 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.
In the past 5 years LOPE has always been profitable.
Each year in the past 5 years LOPE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 22.03%, LOPE belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
LOPE has a Return On Equity of 28.55%. This is amongst the best in the industry. LOPE outperforms 92.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.31%, LOPE belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LOPE is significantly above the industry average of 14.95%.
The last Return On Invested Capital (23.31%) for LOPE is above the 3 year average (22.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.03% | ||
| ROE | 28.55% | ||
| ROIC | 23.31% |
ROA(3y)21.83%
ROA(5y)18.96%
ROE(3y)27.47%
ROE(5y)23.34%
ROIC(3y)22.7%
ROIC(5y)18.75%
1.3 Margins
The Profit Margin of LOPE (21.33%) is better than 96.88% of its industry peers.
LOPE's Profit Margin has declined in the last couple of years.
LOPE's Operating Margin of 25.94% is amongst the best of the industry. LOPE outperforms 93.75% of its industry peers.
In the last couple of years the Operating Margin of LOPE has declined.
LOPE's Gross Margin of 52.42% is in line compared to the rest of the industry. LOPE outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.94% | ||
| PM (TTM) | 21.33% | ||
| GM | 52.42% |
OM growth 3Y-7.58%
OM growth 5Y-4.53%
PM growth 3Y-11.2%
PM growth 5Y-4.66%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LOPE is creating value.
The number of shares outstanding for LOPE has been reduced compared to 1 year ago.
LOPE has less shares outstanding than it did 5 years ago.
There is no outstanding debt for LOPE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
LOPE has an Altman-Z score of 17.05. This indicates that LOPE is financially healthy and has little risk of bankruptcy at the moment.
LOPE's Altman-Z score of 17.05 is amongst the best of the industry. LOPE outperforms 96.88% of its industry peers.
There is no outstanding debt for LOPE. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 17.05 |
ROIC/WACC2.55
WACC9.14%
2.3 Liquidity
A Current Ratio of 3.48 indicates that LOPE has no problem at all paying its short term obligations.
LOPE's Current ratio of 3.48 is amongst the best of the industry. LOPE outperforms 85.94% of its industry peers.
A Quick Ratio of 3.48 indicates that LOPE has no problem at all paying its short term obligations.
The Quick ratio of LOPE (3.48) is better than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 |
3. Growth
3.1 Past
LOPE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.32%, 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 6.66% on average per year.
The Revenue has been growing slightly by 5.44% in the past year.
The Revenue has been growing slightly by 2.59% on average over the past years.
EPS 1Y (TTM)18.32%
EPS 3Y7.99%
EPS 5Y6.66%
EPS growth Q2Q17.37%
Revenue 1Y (TTM)5.44%
Revenue growth 3Y4.41%
Revenue growth 5Y2.59%
Revenue growth Q2Q7.57%
3.2 Future
Based on estimates for the next years, LOPE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.15% on average per year.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y10.84%
EPS Next 2Y11.15%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.57%
Revenue Next 2Y7.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 19.33, which indicates a rather expensive current valuation of LOPE.
71.88% of the companies in the same industry are more expensive than LOPE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LOPE to the average of the S&P500 Index (27.73), we can say LOPE is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.44, which indicates a rather expensive current valuation of LOPE.
Based on the Price/Forward Earnings ratio, LOPE is valued a bit cheaper than 76.56% of the companies in the same industry.
LOPE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LOPE is valued a bit cheaper than the industry average as 60.94% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LOPE is valued a bit cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.45 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
LOPE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of LOPE may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)2.9
EPS Next 2Y11.15%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LOPE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GRAND CANYON EDUCATION INC
NASDAQ:LOPE (5/3/2024, 7:03:58 PM)
After market: 136.11 0 (0%)136.11
+2.09 (+1.56%)
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 Cap4.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.44 | ||
| 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)1.78
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.03% | ||
| ROE | 28.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.94% | ||
| PM (TTM) | 21.33% | ||
| GM | 52.42% | ||
| 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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.48 | ||
| Quick Ratio | 3.48 | ||
| 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)18.32%
EPS 3Y7.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.44%
Revenue growth 3Y4.41%
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