LAUREATE EDUCATION INC (LAUR) Stock Fundamental Analysis
NASDAQ:LAUR - Nasdaq - US5186132032 - Common Stock
LAUR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. LAUR has an excellent profitability rating, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: LAUR is growing strongly while it also seems undervalued. These ratings would make LAUR suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
LAUR had positive earnings in the past year.
In the past year LAUR had a positive cash flow from operations.
Of the past 5 years LAUR 4 years were profitable.
In the past 5 years LAUR always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.70%, LAUR belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
LAUR has a better Return On Equity (27.26%) than 88.89% of its industry peers.
With an excellent Return On Invested Capital value of 18.83%, LAUR belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LAUR is in line with the industry average of 11.87%.
The last Return On Invested Capital (18.83%) for LAUR is above the 3 year average (10.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.7% | ||
| ROE | 27.26% | ||
| ROIC | 18.83% |
ROA(3y)5.77%
ROA(5y)3.88%
ROE(3y)12.4%
ROE(5y)8.72%
ROIC(3y)10.83%
ROIC(5y)6.69%
1.3 Margins
LAUR's Profit Margin of 15.76% is amongst the best of the industry. LAUR outperforms 88.89% of its industry peers.
LAUR's Profit Margin has declined in the last couple of years.
LAUR has a better Operating Margin (23.26%) than 92.06% of its industry peers.
In the last couple of years the Operating Margin of LAUR has grown nicely.
LAUR has a Gross Margin of 26.68%. This is in the lower half of the industry: LAUR underperforms 74.60% of its industry peers.
LAUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.26% | ||
| PM (TTM) | 15.76% | ||
| GM | 26.68% |
OM growth 3Y118.28%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-26.29%
GM growth 3Y9.14%
GM growth 5Y11.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LAUR is still creating some value.
LAUR has more 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 3.13. This indicates that LAUR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.13, LAUR is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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.
The Debt to FCF ratio of LAUR (0.80) is better than 80.95% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that LAUR is not too dependend on debt financing.
LAUR has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: LAUR outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.54
WACC12.25%
2.3 Liquidity
A Current Ratio of 0.63 indicates that LAUR may have some problems paying its short term obligations.
With a Current ratio value of 0.63, LAUR is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
LAUR has a Quick Ratio of 0.63. This is a bad value and indicates that LAUR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.63, LAUR is not doing good in the industry: 74.60% of the companies in the same industry are doing better.
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 | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
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%.
The Revenue has been growing slightly by 5.34% on average over the past years.
EPS 1Y (TTM)139.39%
EPS 3YN/A
EPS 5Y24.06%
EPS Q2Q%143.48%
Revenue 1Y (TTM)9.25%
Revenue growth 3Y13.14%
Revenue growth 5Y5.34%
Sales Q2Q%1.96%
3.2 Future
The Earnings Per Share is expected to grow by 35.66% on average over the next years. This is a very strong growth
LAUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.38% yearly.
EPS Next Y141.3%
EPS Next 2Y46.51%
EPS Next 3Y35.66%
EPS Next 5YN/A
Revenue Next Year6.23%
Revenue Next 2Y4.87%
Revenue Next 3Y6.19%
Revenue Next 5Y9.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.86, which indicates a very decent valuation of LAUR.
Based on the Price/Earnings ratio, LAUR is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.96, LAUR is valued rather cheaply.
LAUR is valuated correctly with a Price/Forward Earnings ratio of 13.03.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LAUR indicates a rather cheap valuation: LAUR is cheaper than 87.30% of the companies listed in the same industry.
LAUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAUR is valued cheaper than 85.71% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than LAUR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.77 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
LAUR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of LAUR may justify a higher PE ratio.
LAUR's earnings are expected to grow with 35.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.08
PEG (5Y)0.49
EPS Next 2Y46.51%
EPS Next 3Y35.66%
5. Dividend
5.1 Amount
No dividends for LAUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LAUREATE EDUCATION INC
NASDAQ:LAUR (1/17/2025, 8:11:48 PM)
After market: 18.74 0 (0%)18.74
-0.09 (-0.48%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners87.77%
Inst Owner Change0.07%
Ins Owners1.07%
Ins Owner Change0.73%
Market Cap2.82B
Analysts82.22
Price Target20.4 (8.86%)
Short Float %2.32%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.72
Dividend Growth(5Y)67.71%
DP45.73%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)136.15%
Min EPS beat(2)29.16%
Max EPS beat(2)243.14%
EPS beat(4)2
Avg EPS beat(4)29.09%
Min EPS beat(4)-128.76%
Max EPS beat(4)243.14%
EPS beat(8)3
Avg EPS beat(8)-5.79%
EPS beat(12)5
Avg EPS beat(12)-14.23%
EPS beat(16)7
Avg EPS beat(16)-0.41%
Revenue beat(2)1
Avg Revenue beat(2)0.53%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)1.18%
Revenue beat(4)3
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)3.45%
Revenue beat(8)6
Avg Revenue beat(8)1.83%
Revenue beat(12)9
Avg Revenue beat(12)1.55%
Revenue beat(16)13
Avg Revenue beat(16)1.96%
PT rev (1m)0%
PT rev (3m)11.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.75%
EPS NY rev (1m)-44.87%
EPS NY rev (3m)20.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.86 | ||
| Fwd PE | 13.03 | ||
| P/S | 1.82 | ||
| P/FCF | 14.77 | ||
| P/OCF | 11.05 | ||
| P/B | 3.15 | ||
| P/tB | 16.81 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)1.58
EY8.43%
EPS(NY)1.44
Fwd EY7.67%
FCF(TTM)1.27
FCFY6.77%
OCF(TTM)1.7
OCFY9.05%
SpS10.3
BVpS5.96
TBVpS1.11
PEG (NY)0.08
PEG (5Y)0.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.7% | ||
| ROE | 27.26% | ||
| ROCE | 23.84% | ||
| ROIC | 18.83% | ||
| ROICexc | 20.67% | ||
| ROICexgc | 43.82% | ||
| OM | 23.26% | ||
| PM (TTM) | 15.76% | ||
| GM | 26.68% | ||
| FCFM | 12.31% |
ROA(3y)5.77%
ROA(5y)3.88%
ROE(3y)12.4%
ROE(5y)8.72%
ROIC(3y)10.83%
ROIC(5y)6.69%
ROICexc(3y)11.59%
ROICexc(5y)7.17%
ROICexgc(3y)23.37%
ROICexgc(5y)14.29%
ROCE(3y)13.7%
ROCE(5y)8.47%
ROICexcg growth 3Y274.06%
ROICexcg growth 5YN/A
ROICexc growth 3Y219.14%
ROICexc growth 5YN/A
OM growth 3Y118.28%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y-26.29%
GM growth 3Y9.14%
GM growth 5Y11.91%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 92.22% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.28% | ||
| Profit Quality | 78.12% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 3.13 |
F-Score7
WACC12.25%
ROIC/WACC1.54
Cap/Depr(3y)73.4%
Cap/Depr(5y)70.53%
Cap/Sales(3y)4.23%
Cap/Sales(5y)6.56%
Profit Quality(3y)134.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)139.39%
EPS 3YN/A
EPS 5Y24.06%
EPS Q2Q%143.48%
EPS Next Y141.3%
EPS Next 2Y46.51%
EPS Next 3Y35.66%
EPS Next 5YN/A
Revenue 1Y (TTM)9.25%
Revenue growth 3Y13.14%
Revenue growth 5Y5.34%
Sales Q2Q%1.96%
Revenue Next Year6.23%
Revenue Next 2Y4.87%
Revenue Next 3Y6.19%
Revenue Next 5Y9.38%
EBIT growth 1Y17.12%
EBIT growth 3Y146.96%
EBIT growth 5YN/A
EBIT Next Year33.01%
EBIT Next 3Y15.79%
EBIT Next 5Y17.69%
FCF growth 1Y307.78%
FCF growth 3Y-20.15%
FCF growth 5Y31.5%
OCF growth 1Y587.5%
OCF growth 3Y-18.08%
OCF growth 5Y-2.72%