PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
USA - NASDAQ:PRDO - US71363P1066 - Common Stock
31.23 USD
-0.06 (-0.19%)
31.17 USD
-0.06 (-0.19%)
Taking everything into account, PRDO scores 8 out of 10 in our fundamental rating. PRDO was compared to 78 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making PRDO a very profitable company, without any liquidiy or solvency issues. PRDO may be a bit undervalued, certainly considering the very reasonable score on growth This makes PRDO very considerable 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.
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 11.90%, PRDO belongs to the top of the industry, outperforming 85.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.63%, PRDO is in the better half of the industry, outperforming 78.21% of the companies in the same industry.
The Return On Invested Capital of PRDO (12.48%) is better than 88.46% of its industry peers.
PRDO had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 9.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 15.63% | ||
| ROIC | 12.48% |
ROA(3y)12.23%
ROA(5y)13.37%
ROE(3y)15.41%
ROE(5y)17.09%
ROIC(3y)12.81%
ROIC(5y)14.34%
1.3 Margins
The Profit Margin of PRDO (20.03%) is better than 92.31% of its industry peers.
In the last couple of years the Profit Margin of PRDO has grown nicely.
The Operating Margin of PRDO (24.32%) is better than 93.59% of its industry peers.
In the last couple of years the Operating Margin of PRDO has grown nicely.
With an excellent Gross Margin value of 78.89%, PRDO belongs to the best of the industry, outperforming 91.03% of the companies in the same industry.
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 | 24.32% | ||
| PM (TTM) | 20.03% | ||
| GM | 78.89% |
OM growth 3Y6.8%
OM growth 5Y13.71%
PM growth 3Y11.16%
PM growth 5Y14.27%
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 about the same amout of shares outstanding than it did 1 year ago.
PRDO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRDO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.23 indicates that PRDO is not in any danger for bankruptcy at the moment.
The Altman-Z score of PRDO (6.23) is better than 94.87% 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.
Looking at the Debt to FCF ratio, with a value of 0.07, PRDO belongs to the top of the industry, outperforming 88.46% 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 has a Debt to Equity ratio of 0.01. This is in the better half of the industry: PRDO outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 6.23 |
ROIC/WACC1.45
WACC8.63%
2.3 Liquidity
A Current Ratio of 4.27 indicates that PRDO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.27, PRDO belongs to the top of the industry, outperforming 93.59% of the companies in the same industry.
PRDO has a Quick Ratio of 4.25. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
PRDO's Quick ratio of 4.25 is amongst the best of the industry. PRDO outperforms 93.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.25 |
3. Growth
3.1 Past
PRDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.33%, which is quite impressive.
PRDO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.19% yearly.
The Revenue has decreased by -4.05% in the past year.
Measured over the past years, PRDO shows a small growth in Revenue. The Revenue has been growing by 1.65% on average per year.
EPS 1Y (TTM)22.33%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%10.17%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%24.76%
3.2 Future
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
Based on estimates for the next years, PRDO will show a quite strong growth in Revenue. The Revenue will grow by 14.40% on average per year.
EPS Next Y12.24%
EPS Next 2Y10.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.83%
Revenue Next 2Y14.4%
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.
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
Based on the Price/Earnings ratio of 12.39, the valuation of PRDO can be described as correct.
Based on the Price/Earnings ratio, PRDO is valued cheaply inside the industry as 82.05% of the companies are valued more expensively.
PRDO is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.22, the valuation of PRDO can be described as reasonable.
PRDO's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRDO is cheaper than 82.05% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, PRDO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.22 |
4.2 Price Multiples
PRDO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRDO is cheaper than 93.59% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 88.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.85 | ||
| EV/EBITDA | 4.33 |
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)1.01
PEG (5Y)1.22
EPS Next 2Y10.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.07, PRDO pays a better dividend. On top of this PRDO pays more dividend than 93.59% of the companies listed in the same industry.
PRDO's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 22.73% of its income as dividend. This is a sustainable payout ratio.
DP22.73%
EPS Next 2Y10.27%
EPS Next 3YN/A
31.23
-0.06 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.19%
Inst Owner Change1.57%
Ins Owners1.25%
Ins Owner Change-12.6%
Market Cap2.03B
Revenue(TTM)681.26M
Net Income(TTM)154.00M
Analysts85.71
Price Target42.84 (37.18%)
Short Float %3.24%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.73%
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%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.22 | ||
| P/S | 2.64 | ||
| P/FCF | 9.85 | ||
| P/OCF | 9.52 | ||
| P/B | 2.06 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 4.33 |
EPS(TTM)2.52
EY8.07%
EPS(NY)2.78
Fwd EY8.92%
FCF(TTM)3.17
FCFY10.15%
OCF(TTM)3.28
OCFY10.5%
SpS11.84
BVpS15.15
TBVpS9.85
PEG (NY)1.01
PEG (5Y)1.22
Graham Number29.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 15.63% | ||
| ROCE | 16.62% | ||
| ROIC | 12.48% | ||
| ROICexc | 28.84% | ||
| ROICexgc | 98.21% | ||
| OM | 24.32% | ||
| PM (TTM) | 20.03% | ||
| GM | 78.89% | ||
| FCFM | 26.78% |
ROA(3y)12.23%
ROA(5y)13.37%
ROE(3y)15.41%
ROE(5y)17.09%
ROIC(3y)12.81%
ROIC(5y)14.34%
ROICexc(3y)33.99%
ROICexc(5y)41.1%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.05%
ROCE(5y)19.09%
ROICexgc growth 3Y-50.8%
ROICexgc growth 5Y3.58%
ROICexc growth 3Y-21.93%
ROICexc growth 5Y-5%
OM growth 3Y6.8%
OM growth 5Y13.71%
PM growth 3Y11.16%
PM growth 5Y14.27%
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 | 22.97% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.75% | ||
| Profit Quality | 133.7% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.25 | ||
| Altman-Z | 6.23 |
F-Score4
WACC8.63%
ROIC/WACC1.45
Cap/Depr(3y)44.18%
Cap/Depr(5y)52.25%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.27%
Profit Quality(3y)106.36%
Profit Quality(5y)124.16%
High Growth Momentum
Growth
EPS 1Y (TTM)22.33%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%10.17%
EPS Next Y12.24%
EPS Next 2Y10.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%24.76%
Revenue Next Year25.83%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.15%
EBIT growth 3Y6.2%
EBIT growth 5Y15.58%
EBIT Next Year28.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.08%
FCF growth 3Y-4.49%
FCF growth 5Y18.31%
OCF growth 1Y33.46%
OCF growth 3Y-5.36%
OCF growth 5Y17.25%
PERDOCEO EDUCATION CORP / PRDO FAQ
Can you provide the ChartMill fundamental rating for PERDOCEO EDUCATION CORP?
ChartMill assigns a fundamental rating of 8 / 10 to PRDO.
Can you provide the valuation status for PERDOCEO EDUCATION CORP?
ChartMill assigns a valuation rating of 8 / 10 to PERDOCEO EDUCATION CORP (PRDO). This can be considered as Undervalued.
What is the profitability of PRDO stock?
PERDOCEO EDUCATION CORP (PRDO) has a profitability rating of 8 / 10.
What is the earnings growth outlook for PERDOCEO EDUCATION CORP?
The Earnings per Share (EPS) of PERDOCEO EDUCATION CORP (PRDO) is expected to grow by 12.24% in the next year.
Can you provide the dividend sustainability for PRDO stock?
The dividend rating of PERDOCEO EDUCATION CORP (PRDO) is 4 / 10 and the dividend payout ratio is 22.73%.