PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
NASDAQ:PRDO - US71363P1066 - Common Stock
32.85 USD
0 (0%)
32.85 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to PRDO. PRDO was compared to 71 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRDO. With these ratings, PRDO could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
PRDO had positive earnings in the past year.
In the past year PRDO had a positive cash flow from operations.
In the past 5 years PRDO has always been profitable.
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 85.92% 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 78.87% of the companies in the same industry.
PRDO has a better Return On Invested Capital (12.48%) than 90.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRDO is above the industry average of 10.23%.
| 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
With an excellent Profit Margin value of 20.09%, PRDO belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
PRDO's Profit Margin has improved in the last couple of years.
PRDO has a Operating Margin of 24.33%. This is amongst the best in the industry. PRDO outperforms 94.37% of its industry peers.
PRDO's Operating Margin has improved in the last couple of years.
PRDO's Gross Margin of 78.89% is amongst the best of the industry. PRDO outperforms 94.37% of its industry peers.
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.
Compared to 1 year ago, PRDO has more shares outstanding
PRDO has less shares outstanding than it did 5 years ago.
PRDO has a worse debt/assets ratio than last year.
2.2 Solvency
PRDO has an Altman-Z score of 6.43. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
PRDO's Altman-Z score of 6.43 is amongst the best of the industry. PRDO outperforms 90.14% of its industry peers.
The Debt to FCF ratio of PRDO is 0.07, which is an excellent value as it means it would take PRDO, only 0.07 years of fcf income to pay off all of its debts.
PRDO has a Debt to FCF ratio of 0.07. This is amongst the best in the industry. PRDO outperforms 90.14% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that PRDO is not too dependend on debt financing.
PRDO has a better Debt to Equity ratio (0.01) than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 6.43 |
ROIC/WACC1.39
WACC8.95%
2.3 Liquidity
A Current Ratio of 4.27 indicates that PRDO has no problem at all paying its short term obligations.
PRDO's Current ratio of 4.27 is amongst the best of the industry. PRDO outperforms 91.55% of its industry peers.
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 91.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.59% over the past year.
PRDO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.19% yearly.
Looking at the last year, PRDO shows a quite strong growth in Revenue. The Revenue has grown by 16.00% in the last year.
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
Based on estimates for the next years, PRDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
PRDO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.00% yearly.
EPS Next Y12.24%
EPS Next 2Y8.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.83%
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
PRDO is valuated correctly with a Price/Earnings ratio of 13.35.
Based on the Price/Earnings ratio, PRDO is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.17. PRDO is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.11, the valuation of PRDO can be described as correct.
Based on the Price/Forward Earnings ratio, PRDO is valued cheaply inside the industry as 87.32% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.78. PRDO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 92.96% of the companies listed in the same industry.
90.14% 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 | 10.39 | ||
| EV/EBITDA | 4.8 |
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)1.09
PEG (5Y)1.31
EPS Next 2Y8.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 3.61, PRDO pays a better dividend. On top of this PRDO pays more dividend than 91.55% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, PRDO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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
32.85
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner Change-0.58%
Ins Owners1.57%
Ins Owner Change-1.48%
Market Cap2.13B
Analysts85.71
Price Target40.8 (24.2%)
Short Float %6.8%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)5.26%
EPS NQ rev (1m)-1.61%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.2%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12.11 | ||
| P/S | 2.78 | ||
| P/FCF | 10.39 | ||
| P/OCF | 10.04 | ||
| P/B | 2.17 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 4.8 |
EPS(TTM)2.46
EY7.49%
EPS(NY)2.71
Fwd EY8.26%
FCF(TTM)3.16
FCFY9.63%
OCF(TTM)3.27
OCFY9.96%
SpS11.84
BVpS15.16
TBVpS9.85
PEG (NY)1.09
PEG (5Y)1.31
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 | 6.43 |
F-Score4
WACC8.95%
ROIC/WACC1.39
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 Y12.24%
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 Year25.83%
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%