PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
NASDAQ:PRDO - Nasdaq - US71363P1066 - Common Stock - Currency: USD
PRDO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. PRDO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PRDO is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make PRDO suitable 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.
Each year in the past 5 years PRDO has been profitable.
In the past 5 years PRDO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.97%, PRDO belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
PRDO's Return On Equity of 15.65% is fine compared to the rest of the industry. PRDO outperforms 79.17% of its industry peers.
The Return On Invested Capital of PRDO (12.29%) is better than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRDO is in line with the industry average of 11.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 15.65% | ||
| ROIC | 12.29% |
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
PRDO has a better Profit Margin (20.91%) than 95.83% 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 25.14%, PRDO belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
PRDO's Operating Margin has improved in the last couple of years.
PRDO's Gross Margin of 80.78% is amongst the best of the industry. PRDO outperforms 93.06% of its industry peers.
In the last couple of years the Gross Margin of PRDO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.14% | ||
| PM (TTM) | 20.91% | ||
| GM | 80.78% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PRDO is still 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
An Altman-Z score of 6.47 indicates that PRDO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.47, PRDO belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of PRDO is 0.09, which is an excellent value as it means it would take PRDO, only 0.09 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.09, PRDO belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that PRDO is not too dependend on debt financing.
PRDO's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. PRDO outperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 6.47 |
ROIC/WACC1.36
WACC9.06%
2.3 Liquidity
A Current Ratio of 4.46 indicates that PRDO has no problem at all paying its short term obligations.
PRDO has a Current ratio of 4.46. This is amongst the best in the industry. PRDO outperforms 91.67% of its industry peers.
PRDO has a Quick Ratio of 4.43. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.43, PRDO belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.43 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.74% over the past year.
Measured over the past years, PRDO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.19% on average per year.
The Revenue has been growing slightly by 6.35% 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)6.35%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%26.59%
3.2 Future
Based on estimates for the next years, PRDO will show a small growth in Earnings Per Share. The EPS will grow by 7.61% on average per year.
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 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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
PRDO is valuated correctly with a Price/Earnings ratio of 13.40.
PRDO's Price/Earnings ratio is rather cheap when compared to the industry. PRDO is cheaper than 86.11% of the companies in the same industry.
When comparing the Price/Earnings ratio of PRDO to the average of the S&P500 Index (26.35), we can say PRDO is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.08, the valuation of PRDO can be described as correct.
Based on the Price/Forward Earnings ratio, PRDO is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRDO to the average of the S&P500 Index (22.20), we can say PRDO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 12.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRDO is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.56 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PRDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)1.32
EPS Next 2Y7.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 1.68%.
PRDO's Dividend Yield is rather good when compared to the industry average which is at 4.26. PRDO pays more dividend than 91.67% of the companies in the same industry.
PRDO's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 22.20% of its income as dividend. This is a sustainable payout ratio.
DP22.2%
EPS Next 2Y7.61%
EPS Next 3YN/A
32.03
+1 (+3.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners98.04%
Inst Owner Change-1.61%
Ins Owners1.22%
Ins Owner Change4.25%
Market Cap2.10B
Analysts85.71
Price Target38.76 (21.01%)
Short Float %10.06%
Short Ratio9.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.05%
Min EPS beat(2)2.12%
Max EPS beat(2)3.98%
EPS beat(4)4
Avg EPS beat(4)4.17%
Min EPS beat(4)1.42%
Max EPS beat(4)9.14%
EPS beat(8)8
Avg EPS beat(8)10.72%
EPS beat(12)12
Avg EPS beat(12)11.58%
EPS beat(16)16
Avg EPS beat(16)11.4%
Revenue beat(2)2
Avg Revenue beat(2)4.21%
Min Revenue beat(2)0.4%
Max Revenue beat(2)8.03%
Revenue beat(4)4
Avg Revenue beat(4)2.79%
Min Revenue beat(4)0.4%
Max Revenue beat(4)8.03%
Revenue beat(8)7
Avg Revenue beat(8)2.32%
Revenue beat(12)11
Avg Revenue beat(12)2.42%
Revenue beat(16)11
Avg Revenue beat(16)1.21%
PT rev (1m)8.57%
PT rev (3m)18.75%
EPS NQ rev (1m)4.84%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)3.32%
EPS NY rev (3m)5.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)19.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)21.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 12.08 | ||
| P/S | 2.89 | ||
| P/FCF | 12.56 | ||
| P/OCF | 12.19 | ||
| P/B | 2.16 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)2.39
EY7.46%
EPS(NY)2.65
Fwd EY8.28%
FCF(TTM)2.55
FCFY7.96%
OCF(TTM)2.63
OCFY8.21%
SpS11.08
BVpS14.81
TBVpS9.48
PEG (NY)1.23
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 15.65% | ||
| ROCE | 16.38% | ||
| ROIC | 12.29% | ||
| ROICexc | 26.15% | ||
| ROICexgc | 78.17% | ||
| OM | 25.14% | ||
| PM (TTM) | 20.91% | ||
| GM | 80.78% | ||
| FCFM | 23.01% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 22.03% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.62% | ||
| Profit Quality | 110.03% | ||
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.43 | ||
| Altman-Z | 6.47 |
F-Score4
WACC9.06%
ROIC/WACC1.36
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 Y10.91%
EPS Next 2Y7.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.35%
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 1Y8.13%
EBIT growth 3Y6.25%
EBIT growth 5Y15.62%
EBIT Next Year17.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.3%
FCF growth 3Y-4.57%
FCF growth 5Y18.25%
OCF growth 1Y31.88%
OCF growth 3Y-5.44%
OCF growth 5Y17.19%