PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
NASDAQ:PRDO - Nasdaq - US71363P1066 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to PRDO. PRDO was compared to 71 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making PRDO a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRDO. With these ratings, PRDO could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
PRDO had positive earnings in the past year.
PRDO had a positive operating cash flow in the past year.
Each year in the past 5 years PRDO has been profitable.
In the past 5 years PRDO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PRDO (11.97%) is better than 87.32% of its industry peers.
With a decent Return On Equity value of 15.65%, PRDO is doing good in the industry, outperforming 78.87% of the companies in the same industry.
PRDO has a better Return On Invested Capital (12.29%) than 88.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRDO is above the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 15.65% | ||
| ROIC | 12.29% |
ROA(3y)12.2%
ROA(5y)13.35%
ROE(3y)15.38%
ROE(5y)17.07%
ROIC(3y)12.82%
ROIC(5y)14.34%
1.3 Margins
PRDO has a better Profit Margin (20.91%) than 92.96% of its industry peers.
In the last couple of years the Profit Margin of PRDO has grown nicely.
With an excellent Operating Margin value of 25.14%, PRDO belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
PRDO's Operating Margin has improved in the last couple of years.
PRDO has a better Gross Margin (80.78%) than 92.96% of its industry peers.
In the last couple of years the Gross Margin of PRDO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.14% | ||
| PM (TTM) | 20.91% | ||
| GM | 80.78% |
OM growth 3Y6.85%
OM growth 5Y13.74%
PM growth 3Y11.06%
PM growth 5Y14.2%
GM growth 3Y-0.82%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
PRDO 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 PRDO has been increased compared to 1 year ago.
Compared to 5 years ago, PRDO has less shares outstanding
The debt/assets ratio for PRDO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.14 indicates that PRDO is not in any danger for bankruptcy at the moment.
PRDO's Altman-Z score of 6.14 is amongst the best of the industry. PRDO outperforms 85.92% of its industry peers.
The Debt to FCF ratio of PRDO is 0.09, which is an excellent value as it means it would take PRDO, only 0.09 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.09, PRDO belongs to the best of the industry, outperforming 90.14% of the companies in the same industry.
A Debt/Equity ratio of 0.01 indicates that PRDO is not too dependend on debt financing.
PRDO has a Debt to Equity ratio of 0.01. This is in the better half of the industry: PRDO outperforms 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 6.14 |
ROIC/WACC1.38
WACC8.89%
2.3 Liquidity
PRDO has a Current Ratio of 4.46. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
PRDO has a better Current ratio (4.46) than 91.55% of its industry peers.
A Quick Ratio of 4.43 indicates that PRDO has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.43, PRDO belongs to the best of the industry, outperforming 91.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.43 |
3. Growth
3.1 Past
PRDO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.74%, which is quite good.
The Earnings Per Share has been growing by 10.19% on average over the past years. This is quite good.
Looking at the last year, PRDO shows a small growth in Revenue. The Revenue has grown by 6.35% in the last year.
Measured over the past years, PRDO shows a small growth in Revenue. The Revenue has been growing by 1.65% on average per year.
EPS 1Y (TTM)12.74%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%16.67%
Revenue 1Y (TTM)6.35%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%26.59%
3.2 Future
Based on estimates for the next years, PRDO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.85% on average per year.
The Revenue is expected to grow by 14.00% on average over the next years. This is quite good.
EPS Next Y10.91%
EPS Next 2Y8.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.17%
Revenue Next 2Y14%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.26, PRDO is valued correctly.
Based on the Price/Earnings ratio, PRDO is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
PRDO is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.80, the valuation of PRDO can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 88.73% of the companies listed in the same industry.
PRDO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
PRDO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRDO is cheaper than 91.55% of the companies in the same industry.
88.73% of the companies in the same industry are more expensive than PRDO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 4.38 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PRDO may justify a higher PE ratio.
PEG (NY)1.12
PEG (5Y)1.2
EPS Next 2Y8.85%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, PRDO has a reasonable but not impressive dividend return.
PRDO's Dividend Yield is rather good when compared to the industry average which is at 3.98. PRDO pays more dividend than 91.55% of the companies in the same industry.
PRDO's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
PRDO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PRDO pays out 22.20% of its income as dividend. This is a sustainable payout ratio.
DP22.2%
EPS Next 2Y8.85%
EPS Next 3YN/A
29.31
-0.22 (-0.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners98.73%
Inst Owner Change0%
Ins Owners1.71%
Ins Owner Change1.55%
Market Cap1.92B
Analysts85.71
Price Target40.8 (39.2%)
Short Float %9.48%
Short Ratio9.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.2%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.05%
Min EPS beat(2)2.12%
Max EPS beat(2)3.98%
EPS beat(4)4
Avg EPS beat(4)4.17%
Min EPS beat(4)1.42%
Max EPS beat(4)9.14%
EPS beat(8)8
Avg EPS beat(8)10.72%
EPS beat(12)12
Avg EPS beat(12)11.58%
EPS beat(16)16
Avg EPS beat(16)11.4%
Revenue beat(2)2
Avg Revenue beat(2)4.21%
Min Revenue beat(2)0.4%
Max Revenue beat(2)8.03%
Revenue beat(4)4
Avg Revenue beat(4)2.79%
Min Revenue beat(4)0.4%
Max Revenue beat(4)8.03%
Revenue beat(8)7
Avg Revenue beat(8)2.32%
Revenue beat(12)11
Avg Revenue beat(12)2.42%
Revenue beat(16)11
Avg Revenue beat(16)1.21%
PT rev (1m)5.26%
PT rev (3m)14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.84%
EPS NY rev (1m)0%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.8 | ||
| P/S | 2.65 | ||
| P/FCF | 11.5 | ||
| P/OCF | 11.15 | ||
| P/B | 1.98 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 4.38 |
EPS(TTM)2.39
EY8.15%
EPS(NY)2.71
Fwd EY9.26%
FCF(TTM)2.55
FCFY8.7%
OCF(TTM)2.63
OCFY8.97%
SpS11.08
BVpS14.81
TBVpS9.48
PEG (NY)1.12
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.97% | ||
| ROE | 15.65% | ||
| ROCE | 16.38% | ||
| ROIC | 12.29% | ||
| ROICexc | 26.15% | ||
| ROICexgc | 78.17% | ||
| OM | 25.14% | ||
| PM (TTM) | 20.91% | ||
| GM | 80.78% | ||
| FCFM | 23.01% |
ROA(3y)12.2%
ROA(5y)13.35%
ROE(3y)15.38%
ROE(5y)17.07%
ROIC(3y)12.82%
ROIC(5y)14.34%
ROICexc(3y)34.03%
ROICexc(5y)41.11%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.08%
ROCE(5y)19.11%
ROICexcg growth 3Y-50.77%
ROICexcg growth 5Y3.63%
ROICexc growth 3Y-21.88%
ROICexc growth 5Y-4.97%
OM growth 3Y6.85%
OM growth 5Y13.74%
PM growth 3Y11.06%
PM growth 5Y14.2%
GM growth 3Y-0.82%
GM growth 5Y-0.36%
F-Score4
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 22.03% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.62% | ||
| Profit Quality | 110.03% | ||
| Current Ratio | 4.46 | ||
| Quick Ratio | 4.43 | ||
| Altman-Z | 6.14 |
F-Score4
WACC8.89%
ROIC/WACC1.38
Cap/Depr(3y)44.5%
Cap/Depr(5y)52.44%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.27%
Profit Quality(3y)106.43%
Profit Quality(5y)124.2%
High Growth Momentum
Growth
EPS 1Y (TTM)12.74%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%16.67%
EPS Next Y10.91%
EPS Next 2Y8.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.35%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%26.59%
Revenue Next Year25.17%
Revenue Next 2Y14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.13%
EBIT growth 3Y6.25%
EBIT growth 5Y15.62%
EBIT Next Year17.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y38.3%
FCF growth 3Y-4.57%
FCF growth 5Y18.25%
OCF growth 1Y31.88%
OCF growth 3Y-5.44%
OCF growth 5Y17.19%