NASDAQ:LAUR stands out as a growth opportunity that won't break the bank.

Take a closer look at LAUREATE EDUCATION INC (NASDAQ:LAUR), an affordable growth stock uncovered by our stock screener. NASDAQ:LAUR boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Analyzing Growth Metrics

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:LAUR has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 139.39% over the past year.
• Measured over the past years, LAUR shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.06% on average per year.
• LAUR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.25%.
• LAUR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.83% yearly.
• The Revenue is expected to grow by 9.38% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Evaluating Valuation: NASDAQ:LAUR

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:LAUR has earned a 9 for valuation:

• LAUR's Price/Earnings ratio is rather cheap when compared to the industry. LAUR is cheaper than 89.06% of the companies in the same industry.
• LAUR is valuated cheaply when we compare the Price/Earnings ratio to 30.11, which is the current average of the S&P500 Index.
• LAUR's Price/Forward Earnings ratio is rather cheap when compared to the industry. LAUR is cheaper than 85.94% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 23.58, LAUR is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, LAUR is valued cheaper than 84.38% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, LAUR is valued cheaper than 84.38% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• LAUR has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as LAUR's earnings are expected to grow with 37.83% in the coming years.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:LAUR has earned a 6 out of 10:

• LAUR has an Altman-Z score of 3.24. This indicates that LAUR is financially healthy and has little risk of bankruptcy at the moment.
• LAUR has a better Altman-Z score (3.24) than 79.69% of its industry peers.
• LAUR has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
• LAUR's Debt to FCF ratio of 0.80 is amongst the best of the industry. LAUR outperforms 82.81% of its industry peers.
• A Debt/Equity ratio of 0.14 indicates that LAUR is not too dependend on debt financing.
• The current and quick ratio evaluation for LAUR is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Analyzing Profitability Metrics

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:LAUR, the assigned 8 is a significant indicator of profitability:

• LAUR has a better Return On Assets (12.70%) than 89.06% of its industry peers.
• LAUR has a better Return On Equity (27.26%) than 89.06% of its industry peers.
• LAUR has a better Return On Invested Capital (18.83%) than 92.19% of its industry peers.
• The 3 year average ROIC (10.83%) for LAUR is below the current ROIC(18.83%), indicating increased profibility in the last year.
• LAUR has a better Profit Margin (15.76%) than 89.06% of its industry peers.
• Looking at the Operating Margin, with a value of 23.26%, LAUR belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.
• In the last couple of years the Operating Margin of LAUR has grown nicely.
• In the last couple of years the Gross Margin of LAUR has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of LAUR contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.