Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: 1.56%
• Average Volume (3M): 489.87K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.46
• Revenue Growth: 15.99%
• EPS Growth: 13.25%
• Country: US
• Employees: 5,690
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.62
• Shares Outstanding: 64,953,380
• 10 Day Avg. Volume: 452,820
• 30 Day Avg. Volume: 489,870
• PEG Ratio: 8.71
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 11.07
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 6.63
• 1Y Price Target: $42.00
• Price Target Upside: 21.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $40.00 ▲(15.54% Upside)

Perdoceo Education's strong financial performance and positive earnings call are the most significant factors driving the stock's score. The company's robust revenue growth, efficient cost management, and strategic acquisitions contribute to a positive outlook. Technical indicators show bullish momentum, though caution is advised due to overbought signals. The valuation is fair, with a reasonable P/E ratio and modest dividend yield.

Positive Factors

Revenue Growth

The significant revenue growth, driven by enrollment increases and strategic acquisitions, indicates strong market demand and effective business strategies, supporting long-term financial health.

Enrollment Growth

Sustained enrollment growth reflects the company's ability to attract and retain students, which is crucial for revenue stability and expansion in the competitive education sector.

Successful Acquisition

The successful integration of St. Augustine enhances the company's portfolio, diversifies revenue streams, and strengthens its competitive position in the education market.

Negative Factors

Potential Enrollment Variability

Enrollment variability at AIU could lead to unpredictable revenue streams, affecting financial planning and stability, posing a risk to consistent growth projections.

Liquidity Management

Suboptimal liquidity management can hinder the company's ability to meet short-term obligations and invest in growth opportunities, potentially impacting operational efficiency.

Minor Enrollment Variability Impact

Even minor enrollment variability can introduce uncertainty in revenue forecasts, which may affect investor confidence and strategic decision-making in the long term.

Perdoceo Education Business Overview & Revenue Model

Company Description

Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. The company operates in two segments, Colorado Technical University and American InterContinental University. It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform. As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.

How the Company Makes Money

Perdoceo Education generates revenue primarily through tuition and fees paid by students enrolled in its degree programs. The company benefits from multiple revenue streams, including traditional tuition for on-campus and online courses, as well as ancillary fees related to course materials and student services. Additionally, Perdoceo may receive funding through federal and state financial aid programs, which can significantly contribute to its revenue. Partnerships with various educational organizations and employers can also enhance its offerings and attract more students, further solidifying its financial performance. The combination of a growing enrollment base, effective marketing strategies, and a focus on student retention are key factors contributing to the company's earnings.

Perdoceo Education Financial Statement Overview

Summary

Perdoceo Education demonstrates strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is solid, with low leverage and strong equity ratios, providing financial stability. While liquidity management could be improved, the company's financial trajectory appears positive.

Income Statement

Perdoceo Education has demonstrated strong revenue and profit growth over the years, with a notable increase in revenue from $681 million to $726 million in the TTM period. The gross profit margin remains robust at 87.5%, while the net profit margin improved to 20.9% in the TTM period. EBIT and EBITDA margins are also healthy, indicating efficient cost management and profitability. Such positive trends indicate a strong financial performance in the education sector, which often faces fluctuating demand.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.07, reflecting minimal leverage and financial risk. Return on equity is impressive at 15.6%, showcasing effective utilization of shareholder funds. The equity ratio is strong at 76.5%, indicating a solid financial foundation with a high proportion of assets financed by equity. These factors contribute to the company's financial stability, although there is room for improving liquidity management.

Cash Flow

Perdoceo Education's cash flow demonstrates stability and growth, evidenced by a 6.4% increase in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.13, indicating that operating cash flows are sufficient to cover net income. Furthermore, the free cash flow to net income ratio is 1.10, which highlights the company's ability to generate cash beyond net earnings. Such metrics indicate strong cash generation and healthy financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	768.84M	681.26M	710.00M	695.21M	693.03M	687.31M
Gross Profit	606.58M	545.76M	579.68M	578.49M	584.29M	575.55M
EBITDA	238.93M	215.47M	209.41M	152.37M	165.78M	158.33M
Net Income	154.44M	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet
Total Assets	1.29B	1.24B	1.01B	957.37M	847.43M	721.52M
Cash, Cash Equivalents and Short-Term Investments	637.99M	568.92M	603.14M	508.72M	494.19M	406.36M
Total Debt	124.54M	131.54M	27.05M	33.84M	44.95M	53.19M
Total Liabilities	309.76M	277.50M	165.90M	231.52M	197.32M	165.61M
Stockholders Equity	984.63M	959.54M	841.42M	725.85M	650.11M	555.91M
Cash Flow
Free Cash Flow	205.39M	156.97M	105.61M	135.57M	180.66M	170.19M
Operating Cash Flow	212.48M	161.59M	112.03M	148.19M	191.12M	179.96M
Investing Cash Flow	-54.90M	-107.78M	-88.51M	-326.75M	54.32M	-165.91M
Financing Cash Flow	-92.79M	-41.08M	-23.38M	-27.73M	-29.95M	-13.05M

Perdoceo Education Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Neutral. The current price of 34.62 is below the 20-day moving average (MA) of 35.90, above the 50-day MA of 33.65, and above the 200-day MA of 29.43, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 14.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRDO.

Perdoceo Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	$2.25B	15.02	16.39%	1.56%	15.99%	13.25%
LOPE	77 Outperform	$5.84B	25.19	30.77%	―	6.52%	11.72%
STRA	76 Outperform	$1.88B	16.33	6.89%	3.06%	4.31%	-1.08%
ATGE	74 Outperform	$5.13B	23.02	16.60%	―	12.85%	81.69%
APEI	71 Outperform	$669.03M	35.10	10.20%	―	5.50%	338.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	53 Neutral	$673.16M	46.38	8.27%	―	14.53%	75.66%