Want to see PRDO full AI Analyst Report?
Perdoceo Education (PRDO) AI Stock Analysis
Perdoceo Education
(NASDAQ:PRDO)
PRDO scores well primarily due to strong financial quality (high margins and low leverage) and a positive earnings outlook with raised FY2026 guidance. Valuation is supportive (P/E ~12 with a dividend), while technicals suggest only moderate momentum. The main constraints on the score are cash-flow volatility and execution/regulatory risk around the South University acquisition.
Perdoceo Education (PRDO) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.88B
- Dividend Yield
- 2.34%
- Average Volume (3M)
- 635.40K
- Price to Earnings (P/E)
- 9.2
- Beta (1Y)
- 0.58
- Revenue Growth
- 11.68%
- EPS Growth
- 18.98%
- Country
- US
- Employees
- 6,000
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Education & Training Services
Perdoceo Education Business Overview & Revenue Model
Company Description
Perdoceo Education Corporation (PRDO) is a provider of higher education services in the United States, delivering its programs through online, campus-based, and hybrid learning models. The company's operations are divided into two main segments: Colo...
How the Company Makes Money
Perdoceo Education makes money primarily by charging tuition and fees to students enrolled at its institutions (principally CTU and AIU). The company’s revenue model is driven by (1) student enrollments and retention (which determine how many student...
Perdoceo Education Earnings Call Summary
The call was strongly positive overall. Management reported broad operating growth, higher earnings, strong retention and prospective-student interest, significant Saint Augustine momentum, increased shareholder returns, substantial liquidity, and an improved full-year outlook. The main challenges were AIU System and Trident enrollment declines, lower AIU revenue, higher CTU legal fees, expected CTU enrollment comparison pressure in the second half, and slightly lower operating cash flow.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, the company expects its effective tax rate to be between 23% and 24%, cash paid for income taxes to be in the range of 2.32 thousand% of pretax income, and capital expenditures to be approximately 1% of revenues; full year 2020 adjusted operating income is expected to range between $258 million and $263 million, adjusted earnings per diluted share are expected to be between $3.10 and $3.16, a 19.9% increase at the midpoint, and full year revenue is expected to increase versus 2025. At Saint Augustine, the company expects revenue and total student enrollments growth each quarter, resulting in double digit adjusted operating income growth for the full year; at AIU System, it expects operating income to grow for the full year. For the third quarter of 2020, adjusted operating income is expected to be in the range of $64 million to $65 million versus $61 million in the prior year quarter, with adjusted earnings per diluted share to range between $0.73 and $0.74 per diluted share versus $0.65. Future quarterly dividend payments are expected to be paid out of free cash flows for the relevant year, subject to board approval and the company's available retained earnings, financial condition, and other relevant factors, and quarterly dividend payments are expected to remain an integral and growing component of the balance allocation capital allocation strategy.
Perdoceo Education Financial Statement Overview
Summary
Overall fundamentals are strong: high profitability (TTM gross margin ~77.1%, EBIT margin ~27.6%, net margin ~20.6%) and a very conservative balance sheet (TTM debt-to-equity ~0.055; ROE ~17.7%). The main offset is cash-flow volatility, with sharply negative TTM free-cash-flow growth (-133.2%) despite solid absolute FCF ($218.0M).
Income Statement
84Very PositiveBalance Sheet
90Very PositiveCash Flow
72Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 858.61M | 846.10M | 681.26M | 710.00M | 695.21M | 693.03M |
| Gross Profit | 610.92M | 606.93M | 560.40M | 579.68M | 578.49M | 584.29M |
| EBITDA | 275.39M | 264.93M | 216.70M | 209.41M | 154.40M | 166.75M |
| Net Income | 177.12M | 159.91M | 147.59M | 147.65M | 95.87M | 109.64M |
Balance Sheet | ||||||
| Total Assets | 1.33B | 1.27B | 1.24B | 1.01B | 957.37M | 847.43M |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 643.49M | 568.92M | 603.14M | 508.72M | 494.19M |
| Total Debt | 56.59M | 105.09M | 131.54M | 27.05M | 33.84M | 44.95M |
| Total Liabilities | 301.08M | 299.80M | 277.50M | 165.90M | 231.52M | 197.32M |
| Stockholders Equity | 1.03B | 972.41M | 959.54M | 841.42M | 725.85M | 650.11M |
Cash Flow | ||||||
| Free Cash Flow | 217.98M | 216.66M | 156.97M | 105.61M | 135.57M | 180.66M |
| Operating Cash Flow | 225.35M | 225.24M | 161.59M | 112.03M | 148.19M | 191.12M |
| Investing Cash Flow | -112.14M | -53.64M | -107.78M | -88.51M | -326.75M | 54.32M |
| Financing Cash Flow | -143.18M | -171.07M | -41.08M | -23.38M | -27.73M | -29.95M |
Perdoceo Education Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Negative. The current price of 26.55 is below the 20-day moving average (MA) of 32.52, below the 50-day MA of 32.41, and below the 200-day MA of 33.11, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 11.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRDO.
Perdoceo Education Risk Analysis
Perdoceo Education disclosed 34 risk factors in its most recent earnings report. Perdoceo Education reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksPerdoceo Education Peers Comparison
Overall Rating
PRDO79Outperform
APEI70Outperform
PXED70Outperform
STRA69Neutral
UTI57Neutral
LINC55Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 79Outperform | $1.88B | 9.15 | 17.70% | 2.34% | 11.68% | 18.98% | |
| 70Outperform | $776.17M | 15.23 | 15.30% | ― | 3.64% | 129.52% | |
| 70Outperform | $794.42M | 8.71 | 28.66% | 2.93% | 0.97% | -34.18% | |
| 69Neutral | $1.65B | 201.62 | 0.60% | 4.10% | 2.79% | -94.16% | |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| 57Neutral | $1.23B | 31.36 | 10.17% | ― | 9.15% | -46.11% | |
| 55Neutral | $637.92M | 23.72 | 11.59% | ― | 22.02% | 57.98% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PRDO | Perdoceo Education Corporation | 26.55 | -2.99 | -10.13% | |
| APEI | American Public Education, Inc. | 38.22 | 7.15 | 23.01% | |
| LINC | Lincoln Educational Services | 17.55 | -0.25 | -1.40% | |
| STRA | Strategic Education | 58.47 | -15.30 | -20.74% | |
| UTI | Universal Technical Institute | 19.69 | -8.62 | -30.45% | |
| PXED | Phoenix Education Partners, Inc. | 21.51 | -10.09 | -31.94% |
Perdoceo Education Corporate Events
Perdoceo to Acquire South University in Cash Deal
PositivePerdoceo Education Corporation, a provider of postsecondary education through brands such as Colorado Technical University, the American InterContinental University System and the University of St. Augustine for Health Sciences, is expanding its foot...
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.
Date of analysis: Oct 21, 2026