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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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
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 better Return On Assets (11.97%) than 88.89% of its industry peers.
PRDO has a better Return On Equity (15.65%) than 79.17% of its industry peers.
PRDO's Return On Invested Capital of 12.29% 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 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
The Profit Margin of PRDO (20.91%) is better than 95.83% of its industry peers.
In the last couple of years the Profit Margin of PRDO has grown nicely.
With an excellent Operating Margin value of 25.14%, PRDO belongs to the best of the industry, outperforming 97.22% of the companies in the same industry.
In the last couple of years the Operating Margin of PRDO has grown nicely.
PRDO has a better Gross Margin (80.78%) than 93.06% of its industry peers.
PRDO's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRDO is creating some value.
PRDO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PRDO has been reduced compared to 5 years ago.
PRDO has a worse debt/assets ratio than last year.
2.2 Solvency
PRDO has an Altman-Z score of 6.61. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PRDO (6.61) is better than 88.89% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.09, PRDO belongs to the best of the industry, outperforming 88.89% 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.
The Debt to Equity ratio of PRDO (0.01) is better than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 6.61 |
ROIC/WACC1.37
WACC8.98%
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.
A Quick Ratio of 4.43 indicates that PRDO has no problem at all paying its short term obligations.
PRDO has a better Quick ratio (4.43) than 91.67% of its industry peers.
| 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.
Looking at the last year, PRDO shows a small growth in Revenue. The Revenue has grown by 6.35% in the last 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)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.
The Revenue is expected to grow by 14.00% on average over the next years. This is quite good.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 13.87, which indicates a correct valuation of PRDO.
Based on the Price/Earnings ratio, PRDO is valued cheaply inside the industry as 86.11% of the companies are valued more expensively.
PRDO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.17.
PRDO is valuated correctly with a Price/Forward Earnings ratio of 12.50.
87.50% of the companies in the same industry are more expensive than PRDO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. PRDO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaper than 86.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRDO is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13 | ||
| EV/EBITDA | 5.51 |
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)1.27
PEG (5Y)1.36
EPS Next 2Y7.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.26, 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 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
22.20% of the earnings are spent on dividend by PRDO. This is a low number and sustainable payout ratio.
DP22.2%
EPS Next 2Y7.61%
EPS Next 3YN/A
NASDAQ:PRDO (5/29/2025, 2:24:53 PM)
33.15
+0.06 (+0.18%)
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 Cap2.17B
Analysts85.71
Price Target38.76 (16.92%)
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 | 13.87 | ||
| Fwd PE | 12.5 | ||
| P/S | 2.99 | ||
| P/FCF | 13 | ||
| P/OCF | 12.61 | ||
| P/B | 2.24 | ||
| P/tB | 3.5 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)2.39
EY7.21%
EPS(NY)2.65
Fwd EY8%
FCF(TTM)2.55
FCFY7.69%
OCF(TTM)2.63
OCFY7.93%
SpS11.08
BVpS14.81
TBVpS9.48
PEG (NY)1.27
PEG (5Y)1.36
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 | 6.61 |
F-Score4
WACC8.98%
ROIC/WACC1.37
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%