LAUREATE EDUCATION INC (LAUR) Stock Fundamental Analysis
NASDAQ:LAUR - Nasdaq - US5186132032 - Common Stock - Currency: USD
LAUR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. LAUR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. LAUR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LAUR was profitable.
In the past year LAUR had a positive cash flow from operations.
LAUR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years LAUR had a positive operating cash flow.
1.2 Ratios
LAUR has a Return On Assets of 15.48%. This is amongst the best in the industry. LAUR outperforms 93.06% of its industry peers.
LAUR has a better Return On Equity (31.67%) than 91.67% of its industry peers.
The Return On Invested Capital of LAUR (14.01%) is better than 91.67% of its industry peers.
LAUR had an Average Return On Invested Capital over the past 3 years of 12.20%. This is in line with the industry average of 10.64%.
The last Return On Invested Capital (14.01%) for LAUR is above the 3 year average (12.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.48% | ||
| ROE | 31.67% | ||
| ROIC | 14.01% |
ROA(3y)8.17%
ROA(5y)4.18%
ROE(3y)17.06%
ROE(5y)8.23%
ROIC(3y)12.2%
ROIC(5y)7.82%
1.3 Margins
LAUR has a Profit Margin of 18.84%. This is amongst the best in the industry. LAUR outperforms 90.28% of its industry peers.
In the last couple of years the Profit Margin of LAUR has declined.
LAUR has a Operating Margin of 22.89%. This is amongst the best in the industry. LAUR outperforms 91.67% of its industry peers.
LAUR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.94%, LAUR is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LAUR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.89% | ||
| PM (TTM) | 18.84% | ||
| GM | 25.94% |
OM growth 3Y56.41%
OM growth 5Y51.46%
PM growth 3Y2.16%
PM growth 5Y-24.55%
GM growth 3Y0.61%
GM growth 5Y6.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), LAUR is creating some value.
LAUR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LAUR has less shares outstanding
Compared to 1 year ago, LAUR has an improved debt to assets ratio.
2.2 Solvency
LAUR has an Altman-Z score of 3.74. This indicates that LAUR is financially healthy and has little risk of bankruptcy at the moment.
LAUR's Altman-Z score of 3.74 is fine compared to the rest of the industry. LAUR outperforms 76.39% of its industry peers.
LAUR has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
The Debt to FCF ratio of LAUR (0.58) is better than 87.50% of its industry peers.
LAUR has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of LAUR (0.10) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 3.74 |
ROIC/WACC1.56
WACC9.01%
2.3 Liquidity
LAUR has a Current Ratio of 0.58. This is a bad value and indicates that LAUR is not financially healthy enough and could expect problems in meeting its short term obligations.
LAUR has a Current ratio of 0.58. This is in the lower half of the industry: LAUR underperforms 73.61% of its industry peers.
LAUR has a Quick Ratio of 0.58. This is a bad value and indicates that LAUR is not financially healthy enough and could expect problems in meeting its short term obligations.
LAUR's Quick ratio of 0.58 is on the low side compared to the rest of the industry. LAUR is outperformed by 73.61% of its industry peers.
LAUR does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
LAUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.16%, which is quite impressive.
LAUR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.27% yearly.
The Revenue has been growing slightly by 1.26% in the past year.
The Revenue has been growing slightly by 5.27% on average over the past years.
EPS 1Y (TTM)144.16%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)1.26%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%-14.23%
3.2 Future
The Earnings Per Share is expected to grow by 2.70% on average over the next years.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y-13.12%
EPS Next 2Y-2.18%
EPS Next 3Y2.7%
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y3.92%
Revenue Next 3Y5.51%
Revenue Next 5YN/A
3.3 Evolution
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.54 indicates a correct valuation of LAUR.
Based on the Price/Earnings ratio, LAUR is valued cheaper than 87.50% of the companies in the same industry.
LAUR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
The Price/Forward Earnings ratio is 12.70, which indicates a correct valuation of LAUR.
Based on the Price/Forward Earnings ratio, LAUR is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. LAUR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAUR indicates a rather cheap valuation: LAUR is cheaper than 80.56% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LAUR indicates a somewhat cheap valuation: LAUR is cheaper than 76.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.87 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
The excellent profitability rating of LAUR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.18%
EPS Next 3Y2.7%
5. Dividend
5.1 Amount
No dividends for LAUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.57
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners89.8%
Inst Owner Change-0.44%
Ins Owners0.92%
Ins Owner Change-13.62%
Market Cap3.51B
Analysts82
Price Target24.61 (4.41%)
Short Float %1.81%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.17%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.84%
Min EPS beat(2)8.96%
Max EPS beat(2)44.72%
EPS beat(4)4
Avg EPS beat(4)81.5%
Min EPS beat(4)8.96%
Max EPS beat(4)243.14%
EPS beat(8)5
Avg EPS beat(8)19.34%
EPS beat(12)6
Avg EPS beat(12)-2.56%
EPS beat(16)8
Avg EPS beat(16)-20.29%
Revenue beat(2)2
Avg Revenue beat(2)1.9%
Min Revenue beat(2)0.87%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.92%
Revenue beat(8)6
Avg Revenue beat(8)1.35%
Revenue beat(12)10
Avg Revenue beat(12)1.76%
Revenue beat(16)13
Avg Revenue beat(16)1.99%
PT rev (1m)0%
PT rev (3m)2.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)1.07%
EPS NY rev (3m)5.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.51%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 12.7 | ||
| P/S | 2.3 | ||
| P/FCF | 17.87 | ||
| P/OCF | 13.65 | ||
| P/B | 3.86 | ||
| P/tB | 18.1 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)1.88
EY7.98%
EPS(NY)1.86
Fwd EY7.88%
FCF(TTM)1.32
FCFY5.6%
OCF(TTM)1.73
OCFY7.33%
SpS10.26
BVpS6.11
TBVpS1.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.48% | ||
| ROE | 31.67% | ||
| ROCE | 23.91% | ||
| ROIC | 14.01% | ||
| ROICexc | 15.15% | ||
| ROICexgc | 32.12% | ||
| OM | 22.89% | ||
| PM (TTM) | 18.84% | ||
| GM | 25.94% | ||
| FCFM | 12.85% |
ROA(3y)8.17%
ROA(5y)4.18%
ROE(3y)17.06%
ROE(5y)8.23%
ROIC(3y)12.2%
ROIC(5y)7.82%
ROICexc(3y)12.93%
ROICexc(5y)8.36%
ROICexgc(3y)26.3%
ROICexgc(5y)16.84%
ROCE(3y)20.82%
ROCE(5y)13.34%
ROICexcg growth 3Y87.4%
ROICexcg growth 5Y128.92%
ROICexc growth 3Y81.26%
ROICexc growth 5Y108.69%
OM growth 3Y56.41%
OM growth 5Y51.46%
PM growth 3Y2.16%
PM growth 5Y-24.55%
GM growth 3Y0.61%
GM growth 5Y6.18%
F-Score8
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.2 | ||
| Cap/Depr | 54.43% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.73% | ||
| Profit Quality | 68.23% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 3.74 |
F-Score8
WACC9.01%
ROIC/WACC1.56
Cap/Depr(3y)70.85%
Cap/Depr(5y)62.87%
Cap/Sales(3y)4.21%
Cap/Sales(5y)4.91%
Profit Quality(3y)138.23%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)144.16%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-85.71%
EPS Next Y-13.12%
EPS Next 2Y-2.18%
EPS Next 3Y2.7%
EPS Next 5YN/A
Revenue 1Y (TTM)1.26%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%-14.23%
Revenue Next Year1.07%
Revenue Next 2Y3.92%
Revenue Next 3Y5.51%
Revenue Next 5YN/A
EBIT growth 1Y3.64%
EBIT growth 3Y76.69%
EBIT growth 5Y59.44%
EBIT Next Year29.55%
EBIT Next 3Y15.49%
EBIT Next 5YN/A
FCF growth 1Y110.2%
FCF growth 3Y25.45%
FCF growth 5Y-15.26%
OCF growth 1Y70.39%
OCF growth 3Y20.85%
OCF growth 5Y-14.97%