33.735 USD
-0.44 (-1.27%)
Taking everything into account, LAUR scores 6 out of 10 in our fundamental rating. LAUR was compared to 76 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, LAUR could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- LAUR had positive earnings in the past year.
- LAUR had a positive operating cash flow in the past year.
- 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 9.62%, LAUR belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
- LAUR has a Return On Equity of 18.21%. This is amongst the best in the industry. LAUR outperforms 81.58% of its industry peers.
- LAUR has a Return On Invested Capital of 13.29%. This is amongst the best in the industry. LAUR outperforms 89.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for LAUR is above the industry average of 10.15%.
- The 3 year average ROIC (12.20%) for LAUR is below the current ROIC(13.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.62% | ||
| ROE | 18.21% | ||
| ROIC | 13.29% |
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 better Profit Margin (12.86%) than 78.95% of its industry peers.
- LAUR's Profit Margin has declined in the last couple of years.
- LAUR has a better Operating Margin (23.73%) than 90.79% of its industry peers.
- LAUR's Operating Margin has improved in the last couple of years.
- LAUR has a Gross Margin of 26.75%. This is in the lower half of the industry: LAUR underperforms 68.42% of its industry peers.
- LAUR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.73% | ||
| PM (TTM) | 12.86% | ||
| GM | 26.75% |
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.
- Compared to 1 year ago, LAUR has less shares outstanding
- 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 4.55. This indicates that LAUR is financially healthy and has little risk of bankruptcy at the moment.
- LAUR has a Altman-Z score of 4.55. This is amongst the best in the industry. LAUR outperforms 85.53% of its industry peers.
- LAUR has a debt to FCF ratio of 0.42. This is a very positive value and a sign of high solvency as it would only need 0.42 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.42, LAUR belongs to the top of the industry, outperforming 88.16% of the companies in the same industry.
- LAUR has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
- LAUR has a Debt to Equity ratio of 0.06. This is in the better half of the industry: LAUR outperforms 65.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.42 | ||
| Altman-Z | 4.55 |
ROIC/WACC1.5
WACC8.84%
2.3 Liquidity
- LAUR has a Current Ratio of 0.81. This is a bad value and indicates that LAUR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of LAUR (0.81) is worse than 68.42% of its industry peers.
- LAUR has a Quick Ratio of 0.81. 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 0.81. This is in the lower half of the industry: LAUR underperforms 63.16% 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 | 0.81 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
- LAUR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.29%.
- 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 2.01% in the past year.
- Measured over the past years, LAUR shows a small growth in Revenue. The Revenue has been growing by 5.27% on average per year.
EPS 1Y (TTM)-13.29%
EPS 3Y23.93%
EPS 5Y-14.27%
EPS Q2Q%-58.93%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y12.97%
Revenue growth 5Y5.27%
Sales Q2Q%8.58%
3.2 Future
- LAUR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.95% yearly.
- LAUR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.34% yearly.
EPS Next Y-19.73%
EPS Next 2Y6.14%
EPS Next 3Y8.95%
EPS Next 5YN/A
Revenue Next Year8.38%
Revenue Next 2Y9.04%
Revenue Next 3Y9.34%
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
- Based on the Price/Earnings ratio of 24.62, the valuation of LAUR can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of LAUR is on the same level as its industry peers.
- LAUR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 15.44, which indicates a correct valuation of LAUR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of LAUR indicates a somewhat cheap valuation: LAUR is cheaper than 71.05% of the companies listed in the same industry.
- LAUR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.62 | ||
| Fwd PE | 15.44 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAUR indicates a somewhat cheap valuation: LAUR is cheaper than 60.53% of the companies listed in the same industry.
- 68.42% 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 | 20.68 | ||
| EV/EBITDA | 11.75 |
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 2Y6.14%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
- No dividends for LAUR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
LAUREATE EDUCATION INC / LAUR FAQ
What is the fundamental rating for LAUR stock?
ChartMill assigns a fundamental rating of 6 / 10 to LAUR.
What is the valuation status of LAUREATE EDUCATION INC (LAUR) stock?
ChartMill assigns a valuation rating of 4 / 10 to LAUREATE EDUCATION INC (LAUR). This can be considered as Fairly Valued.
Can you provide the profitability details for LAUREATE EDUCATION INC?
LAUREATE EDUCATION INC (LAUR) has a profitability rating of 8 / 10.
What is the valuation of LAUREATE EDUCATION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for LAUREATE EDUCATION INC (LAUR) is 24.62 and the Price/Book (PB) ratio is 4.44.
How financially healthy is LAUREATE EDUCATION INC?
The financial health rating of LAUREATE EDUCATION INC (LAUR) is 7 / 10.