PERDOCEO EDUCATION CORP (PRDO) Stock Fundamental Analysis
USA - NASDAQ:PRDO - US71363P1066 - Common Stock
34.81 USD
-0.28 (-0.8%)
34.7 USD
-0.11 (-0.32%)
PRDO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 75 industry peers in the Diversified Consumer Services industry. PRDO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PRDO scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes PRDO very considerable 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
With an excellent Return On Assets value of 11.93%, PRDO belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
PRDO has a Return On Equity of 15.68%. This is in the better half of the industry: PRDO outperforms 78.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.48%, PRDO belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRDO is above the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.68% | ||
| ROIC | 12.48% |
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 Profit Margin of 20.09%. This is amongst the best in the industry. PRDO outperforms 92.00% of its industry peers.
In the last couple of years the Profit Margin of PRDO has grown nicely.
PRDO has a better Operating Margin (24.33%) than 93.33% of its industry peers.
PRDO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 78.89%, PRDO belongs to the top of the industry, outperforming 90.67% of the companies in the same industry.
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 | 24.33% | ||
| PM (TTM) | 20.09% | ||
| GM | 78.89% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PRDO 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
PRDO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.68 indicates that PRDO is not in any danger for bankruptcy at the moment.
PRDO has a better Altman-Z score (6.68) than 92.00% of its industry peers.
The Debt to FCF ratio of PRDO is 0.07, which is an excellent value as it means it would take PRDO, only 0.07 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.07, PRDO belongs to the best of the industry, outperforming 89.33% of the companies in the same industry.
PRDO has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
PRDO has a Debt to Equity ratio of 0.01. This is in the better half of the industry: PRDO outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 6.68 |
ROIC/WACC1.45
WACC8.61%
2.3 Liquidity
A Current Ratio of 4.27 indicates that PRDO has no problem at all paying its short term obligations.
PRDO has a Current ratio of 4.27. This is amongst the best in the industry. PRDO outperforms 93.33% of its industry peers.
PRDO has a Quick Ratio of 4.26. This indicates that PRDO is financially healthy and has no problem in meeting its short term obligations.
PRDO's Quick ratio of 4.26 is amongst the best of the industry. PRDO outperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.59% 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.00%.
PRDO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.65% yearly.
EPS 1Y (TTM)16.59%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%11.67%
Revenue 1Y (TTM)16%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%25.69%
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.
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 14.15, the valuation of PRDO can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of PRDO indicates a rather cheap valuation: PRDO is cheaper than 84.00% of the companies listed in the same industry.
PRDO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
Based on the Price/Forward Earnings ratio of 12.50, the valuation of PRDO can be described as correct.
Based on the Price/Forward Earnings ratio, PRDO is valued cheaply inside the industry as 82.67% of the companies are valued more expensively.
PRDO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRDO is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRDO is valued cheaper than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
PRDO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PRDO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)1.39
EPS Next 2Y10.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRDO has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
PRDO's Dividend Yield is rather good when compared to the industry average which is at 2.02. PRDO pays more dividend than 93.33% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, PRDO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 22.54% of its income as dividend. This is a sustainable payout ratio.
DP22.54%
EPS Next 2Y10.27%
EPS Next 3YN/A
34.81
-0.28 (-0.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.19%
Inst Owner Change0.01%
Ins Owners1.25%
Ins Owner Change-14.2%
Market Cap2.26B
Analysts85.71
Price Target42.84 (23.07%)
Short Float %2.64%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP22.54%
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)5%
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 | 14.15 | ||
| Fwd PE | 12.5 | ||
| P/S | 2.94 | ||
| P/FCF | 11.01 | ||
| P/OCF | 10.64 | ||
| P/B | 2.3 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)2.46
EY7.07%
EPS(NY)2.78
Fwd EY8%
FCF(TTM)3.16
FCFY9.08%
OCF(TTM)3.27
OCFY9.4%
SpS11.84
BVpS15.16
TBVpS9.85
PEG (NY)1.16
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.93% | ||
| ROE | 15.68% | ||
| ROCE | 16.62% | ||
| ROIC | 12.48% | ||
| ROICexc | 28.8% | ||
| ROICexgc | 98.18% | ||
| OM | 24.33% | ||
| PM (TTM) | 20.09% | ||
| GM | 78.89% | ||
| FCFM | 26.71% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 23.24% | ||
| Cap/Sales | 0.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.65% | ||
| Profit Quality | 132.99% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 4.26 | ||
| Altman-Z | 6.68 |
F-Score4
WACC8.61%
ROIC/WACC1.45
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)16.59%
EPS 3Y10.44%
EPS 5Y10.19%
EPS Q2Q%11.67%
EPS Next Y12.24%
EPS Next 2Y10.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16%
Revenue growth 3Y-0.57%
Revenue growth 5Y1.65%
Sales Q2Q%25.69%
Revenue Next Year25.83%
Revenue Next 2Y14.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.2%
EBIT growth 3Y6.25%
EBIT growth 5Y15.62%
EBIT Next Year28.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.74%
FCF growth 3Y-4.57%
FCF growth 5Y18.25%
OCF growth 1Y33.13%
OCF growth 3Y-5.44%
OCF growth 5Y17.19%