Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions.
Fair value with moderate growth potential.
Share Price & News
How has Laureate Education's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LA3A's share price has been volatile over the past 3 months.
7 Day Return
DE Consumer Services
1 Year Return
DE Consumer Services
Return vs Industry: LA3A underperformed the German Consumer Services industry which returned -3.9% over the past year.
Return vs Market: LA3A underperformed the German Market which returned -17.2% over the past year.
Price Volatility Vs. Market
How volatile is Laureate Education's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Laureate Education undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LA3A (€9.45) is trading below our estimate of fair value (€41.42)
Significantly Below Fair Value: LA3A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LA3A is poor value based on its PE Ratio (159.8x) compared to the Consumer Services industry average (13.5x).
PE vs Market: LA3A is poor value based on its PE Ratio (159.8x) compared to the German market (16.8x).
Price to Earnings Growth Ratio
PEG Ratio: LA3A is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: LA3A is good value based on its PB Ratio (0.8x) compared to the XE Consumer Services industry average (2.2x).
How is Laureate Education forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LA3A's forecast earnings growth (54.5% per year) is above the savings rate (-0.4%).
Earnings vs Market: LA3A's earnings (54.5% per year) are forecast to grow faster than the German market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LA3A's revenue (2.1% per year) is forecast to grow slower than the German market (4.1% per year).
High Growth Revenue: LA3A's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LA3A's Return on Equity is forecast to be low in 3 years time (9.5%).
How has Laureate Education performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LA3A has a large one-off loss of $66.5M impacting its December 31 2019 financial results.
Growing Profit Margin: LA3A became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: LA3A has become profitable over the past 5 years, growing earnings by 24.4% per year.
Accelerating Growth: LA3A has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: LA3A has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (42.5%).
Return on Equity
High ROE: LA3A's Return on Equity (0.5%) is considered low.
How is Laureate Education's financial position?
Financial Position Analysis
Short Term Liabilities: LA3A's short term assets ($942.9M) do not cover its short term liabilities ($1.1B).
Long Term Liabilities: LA3A's short term assets ($942.9M) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: LA3A's debt to equity ratio (45.4%) is considered high.
Reducing Debt: LA3A's debt to equity ratio has reduced from 409.9% to 45.4% over the past 5 years.
Inventory Level: LA3A has a high level of physical assets or inventory.
Debt Coverage by Assets: LA3A's debt is not covered by short term assets (assets are 0.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: LA3A is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: LA3A is profitable, therefore cash runway is not a concern.
What is Laureate Education's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate LA3A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate LA3A's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if LA3A's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if LA3A's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LA3A's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eilif Serck-Hanssen (53yo)
Mr. Eilif Serck-Hanssen has been Chief Executive Officer and Director of Laureate Education, Inc. since January 01, 2018 and also serves as its President since July 15, 2019. Mr. Serck-Hanssen served as Pr ...
CEO Compensation Analysis
Compensation vs Market: Eilif's total compensation ($USD5.15M) is above average for companies of similar size in the German market ($USD1.85M).
Compensation vs Earnings: Eilif's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||2.17yrs||US$2.27m||0.049% $974.8k|
|Chief Human Resources Officer||1.83yrs||US$1.88m||0.017% $332.8k|
|President & CEO of Laureate Mexico & Central America & Senior VP of Global Ope. & Learning & Inno.||no data||no data||0.0066% $131.7k|
|Chief Accounting Officer||no data||no data||0.011% $212.7k|
|Chief Information Officer||2.33yrs||no data||no data|
|Senior VP||2.5yrs||no data||0.025% $498.2k|
|Chief Executive Officer of Latin America||no data||no data||no data|
|Chief Executive Officer of Walden & Laureate Online Partners||2.17yrs||US$2.51m||0.0034% $68.4k|
|Chief Executive Officer of Laureate Online||3.17yrs||no data||no data|
Experienced Management: LA3A's management team is considered experienced (2.2 years average tenure).
|Independent Director||12.67yrs||US$57.50k||no data|
|Chairman of the Board||1.17yrs||US$330.84k||0.011% $216.1k|
|Independent Director||6.25yrs||US$282.51k||0.019% $390.4k|
|Independent Director||7yrs||US$260.00k||0.032% $641.8k|
|Independent Director||12.67yrs||US$70.00k||0.014% $278.5k|
Experienced Board: LA3A's board of directors are considered experienced (6.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.
Laureate Education, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Laureate Education, Inc.
- Ticker: LA3A
- Exchange: DB
- Founded: 1989
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$2.203b
- Listing Market Cap: US$2.005b
- Shares outstanding: 209.64m
- Website: https://www.laureate.net
Number of Employees
- Laureate Education, Inc.
- 650 South Exeter Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|LA3A||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||Feb 2017|
|LAUR||NasdaqGS (Nasdaq Global Select)||Yes||Class A Common Stock||US||USD||Feb 2017|
Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. It offers a range of undergraduate and graduate degree programs primarily in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. The company also operates online institutions that offer professional degree programs primarily for the working adults with undergraduate and graduate degree programs. It provides its services in Brazil, Mexico, Chile, Peru, Australia, China, New Zealand, the United Kingdom, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. The company was founded in 1989 and is headquartered in Baltimore, Maryland.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/01 00:42|
|End of Day Share Price||2020/03/31 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.