PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
NASDAQ:PRDO - Nasdaq - US71363P1066 - Common Stock - Currency: USD
Taking everything into account, PRDO scores 7 out of 10 in our fundamental rating. PRDO was compared to 72 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make PRDO suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year PRDO was profitable.
PRDO had a positive operating cash flow in the past year.
Each year in the past 5 years PRDO has been profitable.
Each year in the past 5 years PRDO had a positive operating cash flow.
1.2 Ratios
PRDO has a better Return On Assets (11.93%) than 87.50% of its industry peers.
Looking at the Return On Equity, with a value of 15.68%, PRDO is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
PRDO's Return On Invested Capital of 12.48% is amongst the best of the industry. PRDO outperforms 88.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRDO is above the industry average of 10.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.68% | ||
| ROIC | 12.48% |
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 (20.09%) is better than 93.06% of its industry peers.
In the last couple of years the Profit Margin of PRDO has grown nicely.
PRDO has a better Operating Margin (24.33%) than 94.44% of its industry peers.
PRDO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.89%, PRDO belongs to the top of the industry, outperforming 93.06% of the companies in the same industry.
PRDO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.33% | ||
| PM (TTM) | 20.09% | ||
| GM | 78.89% |
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
PRDO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PRDO has been increased compared to 1 year ago.
PRDO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PRDO is higher compared to a year ago.
2.2 Solvency
PRDO has an Altman-Z score of 6.02. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
PRDO has a Altman-Z score of 6.02. This is amongst the best in the industry. PRDO outperforms 90.28% of its industry peers.
PRDO has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.07, PRDO belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
PRDO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.01, PRDO is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 6.02 |
ROIC/WACC1.42
WACC8.76%
2.3 Liquidity
PRDO has a Current Ratio of 4.27. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.27, PRDO belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 4.26 indicates that PRDO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.26, PRDO belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.26 |
3. Growth
3.1 Past
PRDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.59%, which is quite good.
PRDO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.19% yearly.
PRDO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.00%.
PRDO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.65% yearly.
EPS 1Y (TTM)16.59%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%11.67%
Revenue 1Y (TTM)16%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%25.69%
3.2 Future
PRDO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.85% 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 Y10.91%
EPS Next 2Y8.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.17%
Revenue Next 2Y14%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.52 indicates a correct valuation of PRDO.
87.50% of the companies in the same industry are more expensive than PRDO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. PRDO is valued rather cheaply when compared to this.
PRDO is valuated reasonably with a Price/Forward Earnings ratio of 11.36.
PRDO's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRDO is cheaper than 86.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, PRDO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaper than 95.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRDO is valued cheaper than 93.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | 3.82 |
4.3 Compensation for Growth
PRDO's 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)1.15
PEG (5Y)1.23
EPS Next 2Y8.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 2.14%.
Compared to an average industry Dividend Yield of 3.90, PRDO pays a better dividend. On top of this PRDO pays more dividend than 91.67% of the companies listed in the same industry.
PRDO's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
PRDO has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PRDO pays out 22.54% of its income as dividend. This is a sustainable payout ratio.
DP22.54%
EPS Next 2Y8.85%
EPS Next 3YN/A
NASDAQ:PRDO (8/6/2025, 2:49:02 PM)
30.81
+1.5 (+5.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change-0.39%
Ins Owners1.71%
Ins Owner Change1.55%
Market Cap2.02B
Analysts85.71
Price Target40.8 (32.42%)
Short Float %8.56%
Short Ratio8.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.52%
Min EPS beat(2)1.06%
Max EPS beat(2)3.98%
EPS beat(4)4
Avg EPS beat(4)4.07%
Min EPS beat(4)1.06%
Max EPS beat(4)9.14%
EPS beat(8)8
Avg EPS beat(8)8.98%
EPS beat(12)12
Avg EPS beat(12)10.73%
EPS beat(16)16
Avg EPS beat(16)11.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.4%
Revenue beat(4)3
Avg Revenue beat(4)2.22%
Min Revenue beat(4)-0.69%
Max Revenue beat(4)8.03%
Revenue beat(8)6
Avg Revenue beat(8)1.99%
Revenue beat(12)10
Avg Revenue beat(12)2.3%
Revenue beat(16)11
Avg Revenue beat(16)1.39%
PT rev (1m)0%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.84%
EPS NY rev (1m)0%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.52 | ||
| Fwd PE | 11.36 | ||
| P/S | 2.63 | ||
| P/FCF | 9.83 | ||
| P/OCF | 9.5 | ||
| P/B | 2.05 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 3.82 |
EPS(TTM)2.46
EY7.98%
EPS(NY)2.71
Fwd EY8.81%
FCF(TTM)3.13
FCFY10.17%
OCF(TTM)3.24
OCFY10.52%
SpS11.73
BVpS15.02
TBVpS9.77
PEG (NY)1.15
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.68% | ||
| ROCE | 16.62% | ||
| ROIC | 12.48% | ||
| ROICexc | 28.8% | ||
| ROICexgc | 98.18% | ||
| OM | 24.33% | ||
| PM (TTM) | 20.09% | ||
| GM | 78.89% | ||
| FCFM | 26.71% |
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-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 23.24% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.65% | ||
| Profit Quality | 132.99% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.26 | ||
| Altman-Z | 6.02 |
F-Score4
WACC8.76%
ROIC/WACC1.42
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)16.59%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%11.67%
EPS Next Y10.91%
EPS Next 2Y8.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%25.69%
Revenue Next Year25.17%
Revenue Next 2Y14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.2%
EBIT growth 3Y6.25%
EBIT growth 5Y15.62%
EBIT Next Year20.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.74%
FCF growth 3Y-4.57%
FCF growth 5Y18.25%
OCF growth 1Y33.13%
OCF growth 3Y-5.44%
OCF growth 5Y17.19%