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PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis

NASDAQ:PRDO - Nasdaq - US71363P1066 - Common Stock - Currency: USD

33.15  +0.06 (+0.18%)

Fundamental Rating

7

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!


Dividend Valuation Growth Profitability Health

8

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.
PRDO Yearly Net Income VS EBIT VS OCF VS FCFPRDO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

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 RankSector 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%
PRDO Yearly ROA, ROE, ROICPRDO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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 RankSector 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%
PRDO Yearly Profit, Operating, Gross MarginsPRDO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

8

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.
PRDO Yearly Shares OutstandingPRDO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
PRDO Yearly Total Debt VS Total AssetsPRDO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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 RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.09
Altman-Z 6.61
ROIC/WACC1.37
WACC8.98%
PRDO Yearly LT Debt VS Equity VS FCFPRDO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

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 RankSector Rank
Current Ratio 4.46
Quick Ratio 4.43
PRDO Yearly Current Assets VS Current LiabilitesPRDO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

5

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.
PRDO Yearly Revenue VS EstimatesPRDO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
PRDO Yearly EPS VS EstimatesPRDO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 2 -2

7

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 RankSector Rank
PE 13.87
Fwd PE 12.5
PRDO Price Earnings VS Forward Price EarningsPRDO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 13
EV/EBITDA 5.51
PRDO Per share dataPRDO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

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

3

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 RankSector 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
PRDO Yearly Dividends per sharePRDO Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.1 0.2 0.3 0.4

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
PRDO Yearly Income VS Free CF VS DividendPRDO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M
PRDO Dividend Payout.PRDO Dividend Payout, showing the Payout Ratio.PRDO Dividend Payout.PayoutRetained Earnings

PERDOCEO EDUCATION CORP

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)05-01 2025-05-01/amc
Earnings (Next)07-29 2025-07-29
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 RankSector Rank
Dividend Yield 1.68%
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-30 2025-05-30 (0.13)
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 RankSector 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 RankSector 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 RankSector 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%