LAUREATE EDUCATION INC (LAUR) Stock Fundamental Analysis
USA - NASDAQ:LAUR - US5186132032 - Common Stock
29.72 USD
+0.11 (+0.37%)
29.72 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LAUR. LAUR was compared to 74 industry peers in the Diversified Consumer Services industry. LAUR gets an excellent profitability rating and is at the same time showing great financial health properties. LAUR has a decent growth rate and is not valued too expensively. These ratings would make LAUR suitable for quality investing!
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.
LAUR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LAUR's Return On Assets of 12.51% is amongst the best of the industry. LAUR outperforms 89.19% of its industry peers.
Looking at the Return On Equity, with a value of 24.22%, LAUR belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
LAUR's Return On Invested Capital of 13.76% is amongst the best of the industry. LAUR outperforms 91.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LAUR is above the industry average of 9.88%.
The 3 year average ROIC (12.20%) for LAUR is below the current ROIC(13.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | 24.22% | ||
| ROIC | 13.76% |
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
The Profit Margin of LAUR (16.41%) is better than 87.84% of its industry peers.
In the last couple of years the Profit Margin of LAUR has declined.
With an excellent Operating Margin value of 24.25%, LAUR belongs to the best of the industry, outperforming 91.89% of the companies in the same industry.
LAUR's Operating Margin has improved in the last couple of years.
LAUR has a Gross Margin of 27.23%. This is in the lower half of the industry: LAUR underperforms 67.57% of its industry peers.
LAUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.25% | ||
| PM (TTM) | 16.41% | ||
| GM | 27.23% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so LAUR is still creating some value.
The number of shares outstanding for LAUR has been reduced compared to 1 year ago.
The number of shares outstanding for LAUR has been reduced compared to 5 years ago.
The debt/assets ratio for LAUR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.19 indicates that LAUR is not in any danger for bankruptcy at the moment.
LAUR has a Altman-Z score of 4.19. This is amongst the best in the industry. LAUR outperforms 82.43% of its industry peers.
The Debt to FCF ratio of LAUR is 0.50, which is an excellent value as it means it would take LAUR, only 0.50 years of fcf income to pay off all of its debts.
LAUR has a better Debt to FCF ratio (0.50) than 87.84% of its industry peers.
LAUR has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
LAUR's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. LAUR outperforms 66.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 4.19 |
ROIC/WACC1.59
WACC8.64%
2.3 Liquidity
A Current Ratio of 0.75 indicates that LAUR may have some problems paying its short term obligations.
LAUR's Current ratio of 0.75 is on the low side compared to the rest of the industry. LAUR is outperformed by 70.27% of its industry peers.
LAUR has a Quick Ratio of 0.75. 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 Quick ratio of 0.75. This is in the lower half of the industry: LAUR underperforms 68.92% 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 | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.00% over the past year.
Measured over the past years, LAUR shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.27% on average per year.
Looking at the last year, LAUR shows a small growth in Revenue. The Revenue has grown by 0.44% in the last year.
The Revenue has been growing slightly by 5.27% on average over the past years.
EPS 1Y (TTM)36%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-21.69%
Revenue 1Y (TTM)0.44%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%5%
3.2 Future
LAUR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.93% yearly.
Based on estimates for the next years, LAUR will show a small growth in Revenue. The Revenue will grow by 6.53% on average per year.
EPS Next Y-9.17%
EPS Next 2Y1.69%
EPS Next 3Y3.93%
EPS Next 5YN/A
Revenue Next Year4.22%
Revenue Next 2Y6.14%
Revenue Next 3Y6.53%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 17.48 indicates a rather expensive valuation of LAUR.
72.97% of the companies in the same industry are more expensive than LAUR, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LAUR to the average of the S&P500 Index (27.20), we can say LAUR is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.82, which indicates a correct valuation of LAUR.
Based on the Price/Forward Earnings ratio, LAUR is valued a bit cheaper than the industry average as 79.73% of the companies are valued more expensively.
LAUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LAUR is valued a bit cheaper than the industry average as 74.32% of the companies are valued more expensively.
LAUR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LAUR is cheaper than 72.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.25 | ||
| EV/EBITDA | 9.1 |
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 2Y1.69%
EPS Next 3Y3.93%
5. Dividend
5.1 Amount
LAUR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.72
+0.11 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners89.91%
Inst Owner Change-1.49%
Ins Owners0.92%
Ins Owner Change0.01%
Market Cap4.38B
Analysts82
Price Target28.56 (-3.9%)
Short Float %2.31%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)N/A
DP0.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-11.49%
Max EPS beat(2)8.96%
EPS beat(4)3
Avg EPS beat(4)71.33%
Min EPS beat(4)-11.49%
Max EPS beat(4)243.14%
EPS beat(8)5
Avg EPS beat(8)22.16%
EPS beat(12)6
Avg EPS beat(12)-0.05%
EPS beat(16)7
Avg EPS beat(16)-26.54%
Revenue beat(2)2
Avg Revenue beat(2)2.64%
Min Revenue beat(2)2.37%
Max Revenue beat(2)2.92%
Revenue beat(4)3
Avg Revenue beat(4)1.51%
Min Revenue beat(4)-0.12%
Max Revenue beat(4)2.92%
Revenue beat(8)6
Avg Revenue beat(8)1.19%
Revenue beat(12)10
Avg Revenue beat(12)1.8%
Revenue beat(16)13
Avg Revenue beat(16)1.98%
PT rev (1m)0%
PT rev (3m)16.06%
EPS NQ rev (1m)-23.33%
EPS NQ rev (3m)-23.33%
EPS NY rev (1m)4.54%
EPS NY rev (3m)5.66%
Revenue NQ rev (1m)3.09%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)2.16%
Revenue NY rev (3m)2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.48 | ||
| Fwd PE | 14.82 | ||
| P/S | 2.82 | ||
| P/FCF | 19.25 | ||
| P/OCF | 15.07 | ||
| P/B | 4.17 | ||
| P/tB | 14.99 | ||
| EV/EBITDA | 9.1 |
EPS(TTM)1.7
EY5.72%
EPS(NY)2.01
Fwd EY6.75%
FCF(TTM)1.54
FCFY5.19%
OCF(TTM)1.97
OCFY6.64%
SpS10.53
BVpS7.14
TBVpS1.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | 24.22% | ||
| ROCE | 23.48% | ||
| ROIC | 13.76% | ||
| ROICexc | 15.03% | ||
| ROICexgc | 31.15% | ||
| OM | 24.25% | ||
| PM (TTM) | 16.41% | ||
| GM | 27.23% | ||
| FCFM | 14.65% |
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 Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.5 | ||
| Debt/EBITDA | 0.16 | ||
| Cap/Depr | 62.71% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.91% | ||
| Profit Quality | 89.31% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 4.19 |
F-Score8
WACC8.64%
ROIC/WACC1.59
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)36%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-21.69%
EPS Next Y-9.17%
EPS Next 2Y1.69%
EPS Next 3Y3.93%
EPS Next 5YN/A
Revenue 1Y (TTM)0.44%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%5%
Revenue Next Year4.22%
Revenue Next 2Y6.14%
Revenue Next 3Y6.53%
Revenue Next 5YN/A
EBIT growth 1Y8.2%
EBIT growth 3Y76.69%
EBIT growth 5Y59.44%
EBIT Next Year31.35%
EBIT Next 3Y16.81%
EBIT Next 5YN/A
FCF growth 1Y50.44%
FCF growth 3Y25.45%
FCF growth 5Y-15.26%
OCF growth 1Y37.86%
OCF growth 3Y20.85%
OCF growth 5Y-14.97%