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 71 industry peers in the Diversified Consumer Services industry. LAUR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. LAUR may be a bit undervalued, certainly considering the very reasonable score on growth This makes LAUR very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year LAUR was profitable.
LAUR had a positive operating cash flow in the past year.
Of the past 5 years LAUR 4 years were profitable.
LAUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LAUR (15.92%) is better than 92.96% of its industry peers.
Looking at the Return On Equity, with a value of 30.90%, LAUR belongs to the top of the industry, outperforming 91.55% of the companies in the same industry.
LAUR has a better Return On Invested Capital (14.67%) than 91.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LAUR is in line with the industry average of 11.60%.
The 3 year average ROIC (12.20%) for LAUR is below the current ROIC(14.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 30.9% | ||
| ROIC | 14.67% |
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
Looking at the Profit Margin, with a value of 18.92%, LAUR belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
LAUR's Profit Margin has declined in the last couple of years.
LAUR's Operating Margin of 23.87% is amongst the best of the industry. LAUR outperforms 92.96% of its industry peers.
LAUR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.79%, LAUR is not doing good in the industry: 70.42% of the companies in the same industry are doing better.
LAUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.87% | ||
| PM (TTM) | 18.92% | ||
| GM | 26.79% |
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
LAUR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for LAUR has been reduced compared to 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
An Altman-Z score of 3.55 indicates that LAUR is not in any danger for bankruptcy at the moment.
LAUR has a better Altman-Z score (3.55) than 81.69% of its industry peers.
LAUR has a debt to FCF ratio of 0.62. This is a very positive value and a sign of high solvency as it would only need 0.62 years to pay back of all of its debts.
LAUR's Debt to FCF ratio of 0.62 is amongst the best of the industry. LAUR outperforms 84.51% of its industry peers.
LAUR has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, LAUR is in the better half of the industry, outperforming 63.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.62 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.59
WACC9.23%
2.3 Liquidity
A Current Ratio of 0.62 indicates that LAUR may have some problems paying its short term obligations.
With a Current ratio value of 0.62, LAUR is not doing good in the industry: 71.83% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that LAUR may have some problems paying its short term obligations.
LAUR has a Quick ratio of 0.62. This is in the lower half of the industry: LAUR underperforms 70.42% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
LAUR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 189.55%, 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.
LAUR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.55%.
LAUR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.27% yearly.
EPS 1Y (TTM)189.55%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%138.46%
Revenue 1Y (TTM)5.55%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%3.42%
3.2 Future
LAUR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.40% yearly.
The Revenue is expected to grow by 5.22% on average over the next years.
EPS Next Y-17.72%
EPS Next 2Y-3.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0.69%
Revenue Next 2Y3.71%
Revenue Next 3Y5.22%
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 9.87 indicates a reasonable valuation of LAUR.
Compared to the rest of the industry, the Price/Earnings ratio of LAUR indicates a rather cheap valuation: LAUR is cheaper than 88.73% of the companies listed in the same industry.
LAUR is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.99, the valuation of LAUR can be described as very reasonable.
LAUR's Price/Forward Earnings ratio is rather cheap when compared to the industry. LAUR is cheaper than 87.32% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LAUR to the average of the S&P500 Index (21.08), we can say LAUR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 11.99 |
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 81.69% of the companies listed in the same industry.
LAUR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LAUR is cheaper than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
The excellent profitability rating of LAUR may justify a higher PE ratio.
LAUR's earnings are expected to decrease with -3.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for LAUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.14
-0.21 (-1.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners88.01%
Inst Owner Change0%
Ins Owners1.34%
Ins Owner Change-13.13%
Market Cap2.89B
Analysts82
Price Target24.1 (25.91%)
Short Float %1.9%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)143.93%
Min EPS beat(2)44.72%
Max EPS beat(2)243.14%
EPS beat(4)3
Avg EPS beat(4)47.07%
Min EPS beat(4)-128.76%
Max EPS beat(4)243.14%
EPS beat(8)4
Avg EPS beat(8)0.96%
EPS beat(12)5
Avg EPS beat(12)-14.43%
EPS beat(16)7
Avg EPS beat(16)-26.02%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.87%
Revenue beat(4)3
Avg Revenue beat(4)0.58%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)1.18%
Revenue beat(8)6
Avg Revenue beat(8)1.7%
Revenue beat(12)10
Avg Revenue beat(12)1.77%
Revenue beat(16)13
Avg Revenue beat(16)1.81%
PT rev (1m)3.47%
PT rev (3m)18.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-366.67%
EPS NY rev (1m)7.19%
EPS NY rev (3m)10.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.76%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 11.99 | ||
| P/S | 1.84 | ||
| P/FCF | 17.91 | ||
| P/OCF | 12.39 | ||
| P/B | 3.01 | ||
| P/tB | 11.63 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)1.94
EY10.14%
EPS(NY)1.6
Fwd EY8.34%
FCF(TTM)1.07
FCFY5.58%
OCF(TTM)1.55
OCFY8.07%
SpS10.39
BVpS6.36
TBVpS1.65
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.92% | ||
| ROE | 30.9% | ||
| ROCE | 25.03% | ||
| ROIC | 14.67% | ||
| ROICexc | 15.62% | ||
| ROICexgc | 31.7% | ||
| OM | 23.87% | ||
| PM (TTM) | 18.92% | ||
| GM | 26.79% | ||
| FCFM | 10.28% |
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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.62 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 105.34% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 22.54 | ||
| Cash Conversion | 52.69% | ||
| Profit Quality | 54.34% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 3.55 |
F-Score8
WACC9.23%
ROIC/WACC1.59
Cap/Depr(3y)91.92%
Cap/Depr(5y)75.51%
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)189.55%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%138.46%
EPS Next Y-17.72%
EPS Next 2Y-3.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.55%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%3.42%
Revenue Next Year0.69%
Revenue Next 2Y3.71%
Revenue Next 3Y5.22%
Revenue Next 5YN/A
EBIT growth 1Y9.4%
EBIT growth 3Y76.69%
EBIT growth 5Y59.44%
EBIT Next Year28.26%
EBIT Next 3Y15.49%
EBIT Next 5YN/A
FCF growth 1Y-16.89%
FCF growth 3Y25.45%
FCF growth 5Y-15.26%
OCF growth 1Y-6.91%
OCF growth 3Y20.85%
OCF growth 5Y-14.97%