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Perdoceo Education
(NASDAQ:PRDO)
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Rating:75Outperform
Price Target:
$37.00
▲(10.58% Upside)
Action:Reiterated
Date:09/14/26
PRDO scores well primarily on strong financial quality (high margins/profitability and very low leverage). Valuation is also supportive with a moderate P/E and dividend yield. Offsetting factors are neutral technical momentum and increased event risk from the pending South University acquisition, which carries regulatory and integration uncertainties despite expected accretion.
Positive Factors
Strong revenue growth
Perdoceo’s substantial TTM revenue expansion indicates strong demand across its education platforms and programs. If sustained, broader enrollment and tuition revenue can support operating leverage, reinvestment in student services, and greater resilience across the next several quarters.
Negative Factors
Choppy free-cash-flow growth
Although absolute free cash flow remains strong, the sharp TTM decline in its growth rate signals uneven cash-generation momentum. Continued volatility could make acquisition funding, shareholder returns, and reinvestment less predictable even while reported earnings remain healthy.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Perdoceo’s substantial TTM revenue expansion indicates strong demand across its education platforms and programs. If sustained, broader enrollment and tuition revenue can support operating leverage, reinvestment in student services, and greater resilience across the next several quarters.
Read all positive factors
Perdoceo Education (PRDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.04B
Dividend Yield1.9%
Average Volume (3M)594.96K
Price to Earnings (P/E)11.7
Beta (1Y)0.55
Revenue Growth11.68%
EPS Growth18.98%
CountryUS
Employees6,000
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)2.79
Shares Outstanding62,577,057
10 Day Avg. Volume593,837
30 Day Avg. Volume594,956
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)1.95
Price to Sales (P/S)2.25
P/FCF Ratio8.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$44.00Price Target Upside31.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.92
Revenue Forecast (FY)$866.01M
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: C...
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 stud...
Perdoceo Education Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong profitability, margin expansion, revenue growth and improving enrollment and retention metrics across the company, supported by a solid cash balance and a constructive 2026 outlook. Near-term headwinds include a modest enrollment decline at AIU System, continued reinvestment in marketing and student support that pressures near-term expenses, tax rate/headwind considerations, and CTU comparability as the company laps strong prior quarters and anticipates record graduations. On balance, positive operational and financial momentum, a confident outlook with quantified guidance increases, and a strong balance sheet outweigh the identified challenges.Positive Updates
Strong Profitability and EPS Growth
Net income of $54.0M, or $0.85 per diluted share, up 30.8% vs prior year quarter; adjusted EPS of $0.90, up 28.6% from $0.70 a year ago.
Negative Updates
AIU System Enrollment Decline
Total enrollments at AIU System decreased 2.2% year-over-year, driven primarily by lower enrollments at Trident University — the decline was expected but remains a headwind for that segment.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and EPS Growth
Net income of $54.0M, or $0.85 per diluted share, up 30.8% vs prior year quarter; adjusted EPS of $0.90, up 28.6% from $0.70 a year ago.
Read all positive updates
Company Guidance
Perdoceo guided full‑year 2026 adjusted operating income of $254–$263 million (vs. $237.6M in 2025) and adjusted EPS of $3.05–$3.16 (vs. $2.61 in 2025; ~19% increase at the midpoint), with revenue and operating income expected to grow each remaining quarter versus 2025; second‑quarter adjusted operating income is forecast at $63–$64M (vs. $61.5M) and adjusted EPS $0.79–$0.80 (vs. $0.67, including a $0.05 nonrecurring tax benefit). The company expects a full‑year effective tax rate of 22.5%–23.5% (cash taxes ~23%–24% of pretax income), capital expenditures of about 1.5% of revenue, ended Q1 with $680M in cash/cash equivalents/restricted cash/short‑term investments (up ~$36.5M year‑over‑year) and Q1 operating cash flow of $69.4M (vs. $65.1M), returned ~$18M to shareholders in the quarter, has $91.9M remaining on its repurchase authorization, declared a $0.15 quarterly dividend payable June 12, 2026, and expects enrollment‑driven revenue support (total enrollments +1.1% as of March 31; CTU +1.9% to 34,050; AIU System −2.2%; St. Augustine ~4,400 students) with St. Augustine expected to deliver double‑digit adjusted operating income growth in 2026.Perdoceo Education Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| 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 | 661.81M | 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
Negative
33.46
Price Trends
32.58
Negative
33.10
Negative
32.69
Negative
Market Momentum
0.07
Positive
46.19
Neutral
33.99
Neutral
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 33.46 is above the 20-day moving average (MA) of 33.07, above the 50-day MA of 32.58, and above the 200-day MA of 32.69, indicating a bearish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 33.99 is Neutral, 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perdoceo Education Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.77B | 12.98 | 8.19% | 3.01% | 3.53% | 23.97% | |
75 Outperform | $2.04B | 11.67 | 17.70% | 1.90% | 11.68% | 18.98% | |
74 Outperform | $803.07M | 17.48 | 15.30% | ― | 3.64% | 129.52% | |
70 Outperform | $3.94B | 18.18 | 31.24% | ― | 6.97% | 0.18% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $804.77M | 34.28 | 11.59% | 6.19% | 22.02% | 57.98% |
* Consumer Defensive Sector Average
PRDO
Perdoceo Education
32.55
-2.63
-7.48%
APEI
American Public Education
43.88
7.44
20.42%
LOPE
Grand Canyon Education
151.27
-60.69
-28.63%
LINC
Lincoln Edu
25.37
3.55
16.27%
STRA
Strategic Education
79.84
-1.50
-1.85%
Perdoceo Education Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Perdoceo to Acquire South University in Cash Deal
Positive
Sep 14, 2026
Perdoceo 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 f...
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.