PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
NASDAQ:PRDO - Nasdaq - US71363P1066 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to PRDO. PRDO was compared to 73 industry peers in the Diversified Consumer Services industry. PRDO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PRDO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PRDO a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year PRDO was profitable.
In the past year PRDO had a positive cash flow from operations.
PRDO had positive earnings in each of the past 5 years.
Each year in the past 5 years PRDO had a positive operating cash flow.
1.2 Ratios
PRDO has a Return On Assets of 11.93%. This is amongst the best in the industry. PRDO outperforms 89.04% of its industry peers.
PRDO has a Return On Equity of 15.38%. This is amongst the best in the industry. PRDO outperforms 80.82% of its industry peers.
PRDO has a better Return On Invested Capital (12.14%) than 87.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRDO is in line with the industry average of 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.38% | ||
| ROIC | 12.14% |
ROA(3y)12.2%
ROA(5y)13.35%
ROE(3y)15.38%
ROE(5y)17.07%
ROIC(3y)12.82%
ROIC(5y)14.34%
1.3 Margins
The Profit Margin of PRDO (21.66%) is better than 95.89% of its industry peers.
PRDO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.23%, PRDO belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
PRDO's Operating Margin has improved in the last couple of years.
The Gross Margin of PRDO (82.26%) is better than 93.15% of its industry peers.
PRDO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.23% | ||
| PM (TTM) | 21.66% | ||
| GM | 82.26% |
OM growth 3Y6.85%
OM growth 5Y13.74%
PM growth 3Y11.06%
PM growth 5Y14.2%
GM growth 3Y-0.82%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRDO is creating some value.
PRDO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRDO has less shares outstanding
PRDO has a worse debt/assets ratio than last year.
2.2 Solvency
PRDO has an Altman-Z score of 5.76. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
PRDO has a Altman-Z score of 5.76. This is amongst the best in the industry. PRDO outperforms 87.67% of its industry peers.
The Debt to FCF ratio of PRDO is 0.47, which is an excellent value as it means it would take PRDO, only 0.47 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.47, PRDO belongs to the top of the industry, outperforming 87.67% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that PRDO is not too dependend on debt financing.
PRDO has a Debt to Equity ratio of 0.07. This is in the better half of the industry: PRDO outperforms 60.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 5.76 |
ROIC/WACC1.35
WACC9%
2.3 Liquidity
A Current Ratio of 4.84 indicates that PRDO has no problem at all paying its short term obligations.
The Current ratio of PRDO (4.84) is better than 90.41% of its industry peers.
A Quick Ratio of 4.82 indicates that PRDO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.82, PRDO belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.84 | ||
| Quick Ratio | 4.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.74% over the past year.
The Earnings Per Share has been growing by 10.19% on average over the past years. This is quite good.
The Revenue has decreased by -4.05% in the past year.
The Revenue has been growing slightly by 1.65% on average over the past years.
EPS 1Y (TTM)12.74%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%16.67%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%26.59%
3.2 Future
PRDO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.61% yearly.
Based on estimates for the next years, PRDO will show a quite strong growth in Revenue. The Revenue will grow by 14.00% on average per year.
EPS Next Y7.34%
EPS Next 2Y7.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year23.78%
Revenue Next 2Y14%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.90 indicates a correct valuation of PRDO.
Based on the Price/Earnings ratio, PRDO is valued cheaply inside the industry as 89.04% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.22. PRDO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.63, which indicates a very decent valuation of PRDO.
Based on the Price/Forward Earnings ratio, PRDO is valued cheaper than 94.52% of the companies in the same industry.
PRDO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaper than 91.78% of the companies in the same industry.
91.78% of the companies in the same industry are more expensive than PRDO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 3.59 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PRDO may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)1.27
EPS Next 2Y7.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 2.07%.
Compared to an average industry Dividend Yield of 4.78, PRDO pays a better dividend. On top of this PRDO pays more dividend than 93.15% of the companies listed in the same industry.
PRDO's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
5.2 History
PRDO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PRDO pays out 21.48% of its income as dividend. This is a sustainable payout ratio.
DP21.48%
EPS Next 2Y7.61%
EPS Next 3YN/A
30.83
+5.66 (+22.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners98.04%
Inst Owner Change0.12%
Ins Owners1.22%
Ins Owner Change3.57%
Market Cap2.02B
Analysts85.71
Price Target35.7 (15.8%)
Short Float %9.62%
Short Ratio9.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP21.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.63%
Min EPS beat(2)2.12%
Max EPS beat(2)9.14%
EPS beat(4)4
Avg EPS beat(4)5.92%
Min EPS beat(4)1.42%
Max EPS beat(4)10.99%
EPS beat(8)8
Avg EPS beat(8)10.42%
EPS beat(12)12
Avg EPS beat(12)11.61%
EPS beat(16)16
Avg EPS beat(16)11.22%
Revenue beat(2)2
Avg Revenue beat(2)4.58%
Min Revenue beat(2)1.14%
Max Revenue beat(2)8.03%
Revenue beat(4)4
Avg Revenue beat(4)2.94%
Min Revenue beat(4)1%
Max Revenue beat(4)8.03%
Revenue beat(8)7
Avg Revenue beat(8)2.43%
Revenue beat(12)10
Avg Revenue beat(12)2.36%
Revenue beat(16)10
Avg Revenue beat(16)1.15%
PT rev (1m)0%
PT rev (3m)9.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)21.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.9 | ||
| Fwd PE | 11.63 | ||
| P/S | 2.97 | ||
| P/FCF | 12.87 | ||
| P/OCF | 12.5 | ||
| P/B | 2.11 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 3.59 |
EPS(TTM)2.39
EY7.75%
EPS(NY)2.65
Fwd EY8.6%
FCF(TTM)2.4
FCFY7.77%
OCF(TTM)2.47
OCFY8%
SpS10.4
BVpS14.64
TBVpS9.26
PEG (NY)1.76
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.38% | ||
| ROCE | 16.17% | ||
| ROIC | 12.14% | ||
| ROICexc | 25.03% | ||
| ROICexgc | 73.33% | ||
| OM | 26.23% | ||
| PM (TTM) | 21.66% | ||
| GM | 82.26% | ||
| FCFM | 23.04% |
ROA(3y)12.2%
ROA(5y)13.35%
ROE(3y)15.38%
ROE(5y)17.07%
ROIC(3y)12.82%
ROIC(5y)14.34%
ROICexc(3y)34.03%
ROICexc(5y)41.11%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.08%
ROCE(5y)19.11%
ROICexcg growth 3Y-50.77%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y-21.88%
ROICexc growth 5Y-4.97%
OM growth 3Y6.85%
OM growth 5Y13.74%
PM growth 3Y11.06%
PM growth 5Y14.2%
GM growth 3Y-0.82%
GM growth 5Y-0.36%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.47 | ||
| Debt/EBITDA | 0.35 | ||
| Cap/Depr | 31.58% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.58% | ||
| Profit Quality | 106.36% | ||
| Current Ratio | 4.84 | ||
| Quick Ratio | 4.82 | ||
| Altman-Z | 5.76 |
F-Score5
WACC9%
ROIC/WACC1.35
Cap/Depr(3y)44.5%
Cap/Depr(5y)52.44%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.27%
Profit Quality(3y)106.43%
Profit Quality(5y)124.2%
High Growth Momentum
Growth
EPS 1Y (TTM)12.74%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%16.67%
EPS Next Y7.34%
EPS Next 2Y7.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%26.59%
Revenue Next Year23.78%
Revenue Next 2Y14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.44%
EBIT growth 3Y6.25%
EBIT growth 5Y15.62%
EBIT Next Year17.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y48.63%
FCF growth 3Y-4.57%
FCF growth 5Y18.25%
OCF growth 1Y44.25%
OCF growth 3Y-5.44%
OCF growth 5Y17.19%