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Laureate Education
(NASDAQ:LAUR)
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Rating:72Outperform
Price Target:
$40.00
▲(4.28% Upside)
Action:Reiterated
Date:10/29/26
LAUR scores well overall primarily due to strong underlying profitability and a positive earnings-call setup (raised FY2026 guidance, margin expansion outlook, and ongoing buybacks with low net debt). Offsetting these positives are weakening technicals (price below key moving averages despite oversold readings) and softer recent free-cash-flow trends and cash conversion, while valuation appears reasonable at ~16x earnings.
Positive Factors
Enrollment and revenue growth
Rising enrollment and upgraded revenue guidance indicate continued demand across Laureate’s Mexico and Peru markets. Sustained student growth expands the tuition base, supports operating leverage, and gives the company a durable platform for further earnings growth over coming quarters.
Negative Factors
Softer free cash flow
Recent free-cash-flow deterioration and less-than-full conversion of accounting earnings indicate that cash realization is weaker than reported profitability. If sustained, this could constrain internally funded expansion and reduce flexibility for capital returns or unexpected operating needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Enrollment and revenue growth
Rising enrollment and upgraded revenue guidance indicate continued demand across Laureate’s Mexico and Peru markets. Sustained student growth expands the tuition base, supports operating leverage, and gives the company a durable platform for further earnings growth over coming quarters.
Read all positive factors
Laureate Education (LAUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.01B
Dividend Yield5.23%
Average Volume (3M)1.11M
Price to Earnings (P/E)16.4
Beta (1Y)0.62
Revenue Growth17.89%
EPS Growth31.70%
CountryUS
Employees33,900
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.99
Shares Outstanding137,749,360
10 Day Avg. Volume1,094,604
30 Day Avg. Volume1,112,102
Financial Highlights & Ratios
PEG Ratio-17.01
Price to Book (P/B)4.19
Price to Sales (P/S)2.92
P/FCF Ratio18.91
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit13.61
Enterprise Value/Ebitda9.46
Forecast
1Y Price Target
$42.10Price Target Upside9.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.11
Revenue Forecast (FY)$1.92B
Laureate Education Business Overview & Revenue Model
Company Description
Laureate Education, Inc., operating alongside its various subsidiaries, delivers a diverse array of higher education services and academic programs to students via an extensive network of universities and specialized educational institutions. Its ...
How the Company Makes Money
Laureate primarily makes money by charging students tuition and related education fees for enrolling in and attending its universities. Revenue is generated as students take courses across academic terms in Laureate’s undergraduate and graduate pr...
Laureate Education Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call communicated strong operational momentum: enrollment growth, Q2 revenue and adjusted EBITDA outperformance, improved FY guidance, disciplined capital returns (share repurchases) and clear progress on AI/digital initiatives and campus expansion. Near-term headwinds include Mexico's YTD EBITDA decline due to campus ramp costs, price/mix dilution from faster online growth, and seasonality/timing effects that complicate quarterly comparability. Management detailed monitoring and a path to margin expansion while raising guidance, indicating confidence in execution.Positive Updates
Enrollment Growth
Year-to-date through June, new enrollments increased 10% and total enrollments increased 6% versus prior year, driving increased top-line momentum across the business.
Negative Updates
Mexico YTD Adjusted EBITDA Decline
On a year-to-date and timing-adjusted basis, Mexico's adjusted EBITDA decreased by 2% versus prior year, reflecting timing of investments and ramp-up costs for the new Puebla campus; management expects margin accretion to be weighted to the second half of 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Enrollment Growth
Year-to-date through June, new enrollments increased 10% and total enrollments increased 6% versus prior year, driving increased top-line momentum across the business.
Read all positive updates
Company Guidance
Laureate raised its 2026 outlook, increasing the midpoint by $28M of revenue, $8M of adjusted EBITDA and $0.03 of adjusted EPS, and now expects total enrollments of 518,000–523,000 (up 4–5% vs. 2025); revenues of $1.920B–$1.930B (13% as‑reported; 6–7% constant currency); adjusted EBITDA of $593M–$599M (14–15% as‑reported; 8–9% constant currency) implying roughly 50 basis points of margin expansion at the midpoint; and adjusted EPS of $2.04–$2.10 (up 19–22%), assuming ~139M weighted average shares (only reflecting repurchases through June). Management expects ~50% conversion of adjusted EBITDA to unlevered free cash flow for 2026. Third‑quarter guidance (which includes a $29M favorable intra‑year academic calendar timing impact) is revenue of $471M–$476M and adjusted EBITDA of about $134M–$137M. The update reflects improved FX and continued capital returns (YTD share repurchases $181M; $150M additional repurchase authorization) and a net debt position of $61M (gross debt $223M, cash $162M).Laureate Education Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.70B | 1.57B | 1.48B | 1.24B | 1.09B |
| Gross Profit | 415.16M | 482.18M | 419.76M | 394.51M | 334.91M | 272.21M |
| EBITDA | 597.21M | 522.58M | 537.80M | 378.30M | 350.80M | 54.02M |
| Net Income | 388.32M | 281.63M | 296.47M | 107.59M | 69.57M | 192.45M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 2.21B | 1.86B | 2.13B | 1.97B | 2.21B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 146.70M | 91.35M | 89.39M | 85.20M | 324.80M |
| Total Debt | 251.89M | 515.47M | 427.41M | 582.70M | 648.00M | 569.00M |
| Total Liabilities | 1.32B | 1.02B | 903.52M | 1.18B | 1.20B | 1.07B |
| Stockholders Equity | 1.16B | 1.19B | 959.55M | 950.07M | 774.40M | 1.14B |
Cash Flow | ||||||
| Free Cash Flow | 241.57M | 263.15M | 160.85M | 194.34M | 125.40M | -206.53M |
| Operating Cash Flow | 366.20M | 366.19M | 232.73M | 250.78M | 178.20M | -156.08M |
| Investing Cash Flow | -122.63M | -102.65M | -57.55M | -52.04M | 30.30M | 2.04B |
| Financing Cash Flow | -407.57M | -222.47M | -166.94M | -201.76M | -461.60M | -2.68B |
Laureate Education Technical Analysis
Negative
38.36
Price Trends
37.72
Negative
37.56
Negative
35.56
Positive
Market Momentum
0.03
Positive
35.62
Neutral
12.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAUR, the sentiment is Negative. The current price of 38.36 is below the 20-day moving average (MA) of 38.68, above the 50-day MA of 37.72, and above the 200-day MA of 35.56, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 12.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LAUR.
Laureate Education Risk Analysis
Laureate Education disclosed 35 risk factors in its most recent earnings report. Laureate Education reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Laureate Education Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.72B | 12.61 | 8.19% | 3.09% | 3.53% | 23.97% | |
79 Outperform | $1.97B | 11.28 | 17.70% | 1.97% | 11.68% | 18.98% | |
73 Outperform | $4.01B | 18.51 | 31.24% | ― | 6.97% | 0.18% | |
72 Outperform | $5.01B | 16.38 | 28.61% | 5.23% | 17.89% | 31.70% | |
72 Outperform | $936.47M | 6.26 | 16.38% | 6.41% | 16.99% | 23.72% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $1.22B | 35.28 | 10.17% | 3.36% | 9.15% | -46.11% |
* Consumer Defensive Sector Average
LAUR
Laureate Education
36.36
7.48
25.90%
PRDO
Perdoceo Education
31.48
-2.49
-7.32%
LOPE
Grand Canyon Education
153.97
-50.12
-24.56%
STRA
Strategic Education
77.55
1.61
2.13%
UTI
Universal Technical Institute
22.15
-10.47
-32.10%
AFYA
Afya
10.24
-3.51
-25.53%
Laureate Education Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Laureate Education Posts Strong Q3 Results, Boosts Buybacks
Positive
Oct 29, 2026
On October 29, 2026, Laureate Education reported strong financial results for the third quarter and nine months ended September 30, 2026, marked by double-digit revenue growth and higher profitability versus 2025. Third-quarter revenue rose 21% to...
Business Operations and StrategyStock BuybackFinancial Disclosures
Laureate Education Delivers Strong Q2 2026 Growth
Positive
Jul 30, 2026
Laureate Education reported strong results for the second quarter and six months ended June 30, 2026, highlighted by double‑digit revenue growth and higher profitability versus 2025. Second‑quarter revenue rose 17% to $615.9 million, n...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.