PERDOCEO EDUCATION CORP (PRDO)
US71363P1066 - Common Stock
Taking everything into account, PRDO scores 7 out of 10 in our fundamental rating. PRDO was compared to 66 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 has a bad growth rate and is valued cheaply. These ratings could make PRDO a good candidate for value 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 Return On Assets of 14.66%. This is amongst the best in the industry. PRDO outperforms 90.63% of its industry peers.
Looking at the Return On Equity, with a value of 17.55%, PRDO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.63%, PRDO belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PRDO is in line with the industry average of 14.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | 17.55% | ||
| ROIC | 13.63% |
ROA(3y)12.54%
ROA(5y)13.3%
ROE(3y)15.87%
ROE(5y)17.24%
ROIC(3y)13.87%
ROIC(5y)14.36%
1.3 Margins
PRDO has a Profit Margin of 20.80%. This is amongst the best in the industry. PRDO outperforms 95.31% of its industry peers.
PRDO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.21%, PRDO belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
PRDO's Operating Margin has improved in the last couple of years.
The Gross Margin of PRDO (81.63%) is better than 93.75% 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 | 23.21% | ||
| PM (TTM) | 20.8% | ||
| GM | 81.63% |
OM growth 3Y3.57%
OM growth 5Y13.59%
PM growth 3Y4.77%
PM growth 5Y16.97%
GM growth 3Y-0.84%
GM growth 5Y0.14%
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.
Compared to 1 year ago, PRDO has less shares outstanding
The number of shares outstanding for PRDO has been reduced compared to 5 years ago.
PRDO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 8.21 indicates that PRDO is not in any danger for bankruptcy at the moment.
PRDO has a Altman-Z score of 8.21. This is amongst the best in the industry. PRDO outperforms 95.31% of its industry peers.
There is no outstanding debt for PRDO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.21 |
ROIC/WACC1.51
WACC9.02%
2.3 Liquidity
PRDO has a Current Ratio of 5.90. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
PRDO has a Current ratio of 5.90. This is amongst the best in the industry. PRDO outperforms 93.75% of its industry peers.
PRDO has a Quick Ratio of 5.85. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
PRDO has a better Quick ratio (5.85) than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.9 | ||
| Quick Ratio | 5.85 |
3. Growth
3.1 Past
PRDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.71%, 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 19.27% yearly.
Looking at the last year, PRDO shows a small growth in Revenue. The Revenue has grown by 2.13% in the last year.
Measured over the past years, PRDO shows a small growth in Revenue. The Revenue has been growing by 4.08% on average per year.
EPS 1Y (TTM)24.71%
EPS 3Y10.18%
EPS 5Y19.27%
EPS growth Q2Q3.45%
Revenue 1Y (TTM)2.13%
Revenue growth 3Y1.09%
Revenue growth 5Y4.08%
Revenue growth Q2Q-13.98%
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 5.69% on average per year.
PRDO is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.24% yearly.
EPS Next Y2.97%
EPS Next 2Y5.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.11%
Revenue Next 2Y-2.24%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PRDO is valuated reasonably with a Price/Earnings ratio of 11.08.
Compared to the rest of the industry, the Price/Earnings ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 87.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.15. PRDO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.02 indicates a reasonable valuation of PRDO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 89.06% of the companies listed in the same industry.
PRDO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 10.02 |
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 93.75% of the companies listed in the same industry.
79.69% 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 | 14.6 | ||
| EV/EBITDA | 2.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PRDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.73
PEG (5Y)0.58
EPS Next 2Y5.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, PRDO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 32.84, PRDO pays a better dividend. On top of this PRDO pays more dividend than 90.63% 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 | 1.84% |
5.2 History
PRDO does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PRDO pays out 9.76% of its income as dividend. This is a sustainable payout ratio.
DP9.76%
EPS Next 2Y5.69%
EPS Next 3YN/A
PERDOCEO EDUCATION CORP
NASDAQ:PRDO (5/17/2024, 7:20:58 PM)
After market: 23.5 0 (0%)23.5
-0.31 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.54B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 10.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.73
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | 17.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.21% | ||
| PM (TTM) | 20.8% | ||
| GM | 81.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.9 | ||
| Quick Ratio | 5.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.71%
EPS 3Y10.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.13%
Revenue growth 3Y1.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y