Coursera (COUR) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: N/A
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 7.26%
• EPS Growth: 39.62%
• Country: US
• Employees: 1,260
• Sector: Technology
• Sector Strength: 77
• Industry: Education & Training Services
• EPS (TTM): 0.12
• Shares Outstanding: 161,400,000
• 10 Day Avg. Volume: 1,834,999
• 30 Day Avg. Volume: 2,216,273
• PEG Ratio: -1.26
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.57
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: -2.11
• 1Y Price Target: $9.78
• Price Target Upside: 11.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Coursera's strengths lie in its strong cash flow and revenue growth, alongside positive technical indicators suggesting short-term upward momentum. However, the company faces profitability challenges and valuation issues due to its negative P/E ratio. The earnings call provided optimism with revenue growth and strategic initiatives, yet also highlighted potential risks in the degree segment and enterprise spending.

Positive Factors

Business Model

COUR's flywheel, which attracts learners through free content and converts them into paid learners, is an attractive model poised for robust revenue growth.

Financial Performance

Coursera delivered a broad beat in Q1 results, better than expected guidance which embeds macro related conservatism, and signs of improvement across Consumer top-of-funnel and Enterprise NRR.

Valuation

Shares trade at only less than 1x CY26 sales and less than 10x EBITDA, which is considered attractive.

Negative Factors

Consumer Spending

Recessionary concerns could limit consumer discretionary spending.

Economic Environment

Coursera's revenue growth continues to face macro headwinds, especially in the Enterprise segment.

Coursera Business Overview & Revenue Model

Company Description

Coursera, Inc. operates an online educational content platform that connects learners, educators, organizations, and institutions. It offers online courses that include data science, business, computer science, information technology, health, social sciences, logic, project management, and digital marketing services; campus student plans; degree courses; and certification education. Coursera, Inc. was formerly known as Dkandu, Inc. and changed its name to Coursera, Inc. in April 2012. The company was incorporated in 2011 and is headquartered in Mountain View, California.

How the Company Makes Money

Coursera generates revenue primarily through its freemium business model, where users can access certain courses for free while paying for additional features and certifications. The company offers various products, including individual course certificates, professional certificates, and degree programs, which are priced at different levels. Coursera also partners with businesses and governments to provide enterprise and government solutions, allowing these entities to offer Coursera's educational content to their employees or constituents. This B2B segment is a significant revenue stream, with organizations paying subscription fees for access to the platform's content library. Additionally, Coursera earns revenue through its Coursera for Campus product, which enables educational institutions to integrate Coursera courses into their curricula. Key partnerships with leading universities and industry leaders are crucial for content development and expansion, thereby enhancing Coursera's ability to monetize its offerings.

Coursera Financial Statement Overview

Summary

Coursera is experiencing revenue growth and strong cash flow generation, which are positive signs. However, the company is still facing profitability challenges with consistent net losses and negative profit margins. The balance sheet remains healthy with low leverage, providing financial stability.

Income Statement

Coursera shows a steady revenue growth with a TTM increase in total revenue by 1.47% from the previous annual period. However, it continues to operate at a loss, with a negative net profit margin of -9.37% and negative EBIT and EBITDA margins, indicating ongoing operational challenges.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 64.17% in TTM, demonstrating good financial stability. The debt-to-equity ratio is low at 0.51%, indicating low leverage risk. However, the negative net income affects the return on equity, which remains negative.

Cash Flow

Coursera has shown improvement in its cash flow, with a positive operating cash flow of $104.41M and a positive free cash flow of $87.28M for the TTM. The free cash flow to net income ratio is robust despite negative net income, indicating strong cash generation capabilities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
704.91M	694.67M	635.76M	523.76M	415.29M	293.51M
	Gross Profit
379.82M	371.41M	329.77M	331.48M	249.47M	154.66M
	EBIT
-97.83M	-113.22M	-145.60M	-167.23M	-143.06M	-66.58M
	EBITDA
-66.11M	-79.19M	-129.13M	-152.13M	-128.33M	-55.70M
	Net Income Common Stockholders
-66.07M	-79.53M	-116.55M	-175.36M	-145.22M	-66.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
748.00M	726.13M	722.07M	780.47M	821.77M	285.28M
	Total Assets
951.20M	930.27M	920.53M	947.60M	958.91M	417.62M
	Total Debt
3.10M	3.06M	6.60M	14.45M	19.89M	26.23M
	Net Debt
-744.90M	-723.06M	-649.73M	-306.37M	-560.76M	-53.65M
	Total Liabilities
340.70M	332.85M	304.34M	253.02M	217.40M	177.16M
	Stockholders Equity
610.50M	597.42M	616.19M	694.58M	741.51M	240.47M
Cash Flow		Free Cash Flow
87.28M	93.78M	13.24M	-51.93M	-11.90M	-26.91M
	Operating Cash Flow
104.41M	95.36M	29.64M	-38.05M	1.75M	-14.99M
	Investing Cash Flow
-29.74M	29.90M	384.80M	-234.02M	-51.61M	-101.44M
	Financing Cash Flow
-44.89M	-54.94M	-79.23M	12.23M	550.16M	139.01M

Coursera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COUR, the sentiment is Positive. The current price of 8.76 is above the 20-day moving average (MA) of 8.56, above the 50-day MA of 7.56, and above the 200-day MA of 7.86, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 46.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COUR.

Coursera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTI	79 Outperform	$1.89B	33.56	21.81%	―	14.69%	188.00%
COUR	73 Outperform	$1.41B	―	-10.84%	―	7.26%	39.62%
GOTU	61 Neutral	$940.25M	―	-36.29%	―	58.34%	-602.43%
UDMY	61 Neutral	$1.04B	―	-27.17%	―	5.43%	14.22%
KLC	61 Neutral	$1.43B	35.79	-13.54%	―	4.87%	-198.67%
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
DAO	60 Neutral	$1.11B	53.40	25.15%	―	-2.04%	―

Coursera Corporate Events

Coursera Announces CEO Transition and Retention Plans

On January 29, 2025, Coursera, Inc. entered into a separation agreement with its former CEO, Jeffrey Maggioncalda, who retired effective February 3, 2025. The agreement includes a severance package and advisory services from Mr. Maggioncalda to ensure a smooth leadership transition. Concurrently, Coursera established a retention agreement with CFO Kenneth Hahn to maintain leadership stability during the CEO transition, offering enhanced severance benefits and potential advisory roles in case of certain employment terminations.