PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
USA - NASDAQ:PRDO - US71363P1066 - Common Stock
31.12 USD
-0.11 (-0.35%)
31.22 USD
+0.1 (+0.32%)
PRDO gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 79 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. PRDO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
In the past year PRDO had a positive cash flow from operations.
In the past 5 years PRDO has always been profitable.
Each year in the past 5 years PRDO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PRDO (11.90%) is better than 85.90% of its industry peers.
The Return On Equity of PRDO (15.63%) is better than 78.21% of its industry peers.
PRDO has a Return On Invested Capital of 12.48%. This is amongst the best in the industry. PRDO outperforms 88.46% of its industry peers.
PRDO had an Average Return On Invested Capital over the past 3 years of 12.81%. This is above the industry average of 9.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 15.63% | ||
| ROIC | 12.48% |
ROA(3y)12.23%
ROA(5y)13.37%
ROE(3y)15.41%
ROE(5y)17.09%
ROIC(3y)12.81%
ROIC(5y)14.34%
1.3 Margins
The Profit Margin of PRDO (20.03%) is better than 92.31% of its industry peers.
PRDO's Profit Margin has improved in the last couple of years.
PRDO has a better Operating Margin (24.32%) than 93.59% of its industry peers.
In the last couple of years the Operating Margin of PRDO has grown nicely.
PRDO has a better Gross Margin (78.89%) than 91.03% 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 | 24.32% | ||
| PM (TTM) | 20.03% | ||
| GM | 78.89% |
OM growth 3Y6.8%
OM growth 5Y13.71%
PM growth 3Y11.16%
PM growth 5Y14.27%
GM growth 3Y-0.82%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRDO is creating some value.
Compared to 1 year ago, PRDO has about the same amount of shares outstanding.
PRDO has less shares outstanding than it did 5 years ago.
PRDO has a worse debt/assets ratio than last year.
2.2 Solvency
PRDO has an Altman-Z score of 6.23. This indicates that PRDO is financially healthy and has little risk of bankruptcy at the moment.
PRDO has a Altman-Z score of 6.23. This is amongst the best in the industry. PRDO outperforms 94.87% of its industry peers.
PRDO has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
PRDO has a better Debt to FCF ratio (0.07) than 88.46% of its industry peers.
PRDO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.01, PRDO is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 6.23 |
ROIC/WACC1.44
WACC8.69%
2.3 Liquidity
A Current Ratio of 4.27 indicates that PRDO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.27, PRDO belongs to the top of the industry, outperforming 93.59% of the companies in the same industry.
A Quick Ratio of 4.25 indicates that PRDO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.25, PRDO belongs to the top of the industry, outperforming 93.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.33% over the past year.
The Earnings Per Share has been growing by 10.19% on average over the past years. This is quite good.
PRDO shows a decrease in Revenue. In the last year, the revenue decreased by -4.05%.
The Revenue has been growing slightly by 1.65% on average over the past years.
EPS 1Y (TTM)22.33%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%10.17%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%24.76%
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 10.27% on average per year.
Based on estimates for the next years, PRDO will show a quite strong growth in Revenue. The Revenue will grow by 14.40% on average per year.
EPS Next Y12.24%
EPS Next 2Y10.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.83%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
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 stable.
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
The Price/Earnings ratio is 12.35, which indicates a correct valuation of PRDO.
82.05% of the companies in the same industry are more expensive than PRDO, based on the Price/Earnings ratio.
PRDO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of PRDO.
Based on the Price/Forward Earnings ratio, PRDO is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. PRDO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaply inside the industry as 93.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRDO is valued cheaply inside the industry as 87.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
PRDO's 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)1.01
PEG (5Y)1.21
EPS Next 2Y10.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 1.92%.
PRDO's Dividend Yield is rather good when compared to the industry average which is at 2.04. PRDO pays more dividend than 93.59% of the companies in the same industry.
PRDO's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 22.73% of its income as dividend. This is a sustainable payout ratio.
DP22.73%
EPS Next 2Y10.27%
EPS Next 3YN/A
31.12
-0.11 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.19%
Inst Owner Change1.57%
Ins Owners1.25%
Ins Owner Change-12.6%
Market Cap2.02B
Revenue(TTM)681.26M
Net Income(TTM)154.00M
Analysts85.71
Price Target42.84 (37.66%)
Short Float %3.24%
Short Ratio4.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.73%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.52%
Min EPS beat(2)1.06%
Max EPS beat(2)3.98%
EPS beat(4)4
Avg EPS beat(4)4.07%
Min EPS beat(4)1.06%
Max EPS beat(4)9.14%
EPS beat(8)8
Avg EPS beat(8)8.98%
EPS beat(12)12
Avg EPS beat(12)10.73%
EPS beat(16)16
Avg EPS beat(16)11.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.4%
Revenue beat(4)3
Avg Revenue beat(4)2.22%
Min Revenue beat(4)-0.69%
Max Revenue beat(4)8.03%
Revenue beat(8)6
Avg Revenue beat(8)1.99%
Revenue beat(12)10
Avg Revenue beat(12)2.3%
Revenue beat(16)11
Avg Revenue beat(16)1.39%
PT rev (1m)0%
PT rev (3m)5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 11.18 | ||
| P/S | 2.63 | ||
| P/FCF | 9.82 | ||
| P/OCF | 9.49 | ||
| P/B | 2.05 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)2.52
EY8.1%
EPS(NY)2.78
Fwd EY8.95%
FCF(TTM)3.17
FCFY10.19%
OCF(TTM)3.28
OCFY10.54%
SpS11.84
BVpS15.15
TBVpS9.85
PEG (NY)1.01
PEG (5Y)1.21
Graham Number29.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.9% | ||
| ROE | 15.63% | ||
| ROCE | 16.62% | ||
| ROIC | 12.48% | ||
| ROICexc | 28.84% | ||
| ROICexgc | 98.21% | ||
| OM | 24.32% | ||
| PM (TTM) | 20.03% | ||
| GM | 78.89% | ||
| FCFM | 26.78% |
ROA(3y)12.23%
ROA(5y)13.37%
ROE(3y)15.41%
ROE(5y)17.09%
ROIC(3y)12.81%
ROIC(5y)14.34%
ROICexc(3y)33.99%
ROICexc(5y)41.1%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.05%
ROCE(5y)19.09%
ROICexgc growth 3Y-50.8%
ROICexgc growth 5Y3.58%
ROICexc growth 3Y-21.93%
ROICexc growth 5Y-5%
OM growth 3Y6.8%
OM growth 5Y13.71%
PM growth 3Y11.16%
PM growth 5Y14.27%
GM growth 3Y-0.82%
GM growth 5Y-0.36%
F-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 22.97% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.75% | ||
| Profit Quality | 133.7% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.25 | ||
| Altman-Z | 6.23 |
F-Score4
WACC8.69%
ROIC/WACC1.44
Cap/Depr(3y)44.18%
Cap/Depr(5y)52.25%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.27%
Profit Quality(3y)106.36%
Profit Quality(5y)124.16%
High Growth Momentum
Growth
EPS 1Y (TTM)22.33%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%10.17%
EPS Next Y12.24%
EPS Next 2Y10.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%24.76%
Revenue Next Year25.83%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.15%
EBIT growth 3Y6.2%
EBIT growth 5Y15.58%
EBIT Next Year28.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.08%
FCF growth 3Y-4.49%
FCF growth 5Y18.31%
OCF growth 1Y33.46%
OCF growth 3Y-5.36%
OCF growth 5Y17.25%
PERDOCEO EDUCATION CORP / PRDO FAQ
Can you provide the ChartMill fundamental rating for PERDOCEO EDUCATION CORP?
ChartMill assigns a fundamental rating of 8 / 10 to PRDO.
Can you provide the valuation status for PERDOCEO EDUCATION CORP?
ChartMill assigns a valuation rating of 8 / 10 to PERDOCEO EDUCATION CORP (PRDO). This can be considered as Undervalued.
What is the profitability of PRDO stock?
PERDOCEO EDUCATION CORP (PRDO) has a profitability rating of 8 / 10.
What is the earnings growth outlook for PERDOCEO EDUCATION CORP?
The Earnings per Share (EPS) of PERDOCEO EDUCATION CORP (PRDO) is expected to grow by 12.24% in the next year.
Can you provide the dividend sustainability for PRDO stock?
The dividend rating of PERDOCEO EDUCATION CORP (PRDO) is 4 / 10 and the dividend payout ratio is 22.73%.