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Career Education

Nasdaq:CECO
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CECO
Nasdaq
$896M
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Career Education Corporation operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, campus based, and blended learning programs in the United States. The last earnings update was 82 days ago. More info.


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CECO Share Price and Events
7 Day Returns
3.1%
NasdaqGS:CECO
2.6%
US Consumer Services
3.2%
US Market
1 Year Returns
1.7%
NasdaqGS:CECO
-5.3%
US Consumer Services
-6.5%
US Market
CECO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Career Education (CECO) 3.1% 7.9% -6.9% 1.7% 364.8% 114.4%
US Consumer Services 2.6% 12.3% 7.3% -5.3% 98.3% 110.9%
US Market 3.2% 11.4% -1.4% -6.5% 42.1% 41.6%
1 Year Return vs Industry and Market
  • CECO outperformed the Consumer Services industry which returned -5.3% over the past year.
  • CECO outperformed the Market in United States of America which returned -6.5% over the past year.
Price Volatility
CECO
Industry
5yr Volatility vs Market

Value

 Is Career Education undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Career Education to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Career Education.

NasdaqGS:CECO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CECO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.906 (1 + (1- 21%) (0%))
0.906
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.91
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.906 * 7.27%)
9.32%

Discounted Cash Flow Calculation for NasdaqGS:CECO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Career Education is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:CECO DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 82.80 86.30 77.56 69.70 62.64
Source Analyst x1 Analyst x1 Est @ -10.13% Est @ -10.13% Est @ -10.13%
Present Value
Discounted (@ 9.32%)
75.74 72.21 59.37 48.80 40.12
Present value of next 5 years cash flows $296.24
NasdaqGS:CECO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $62.64 × (1 + 2.73%) ÷ (9.32% – 2.73%)
$976.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $976.52 ÷ (1 + 9.32%)5
$625.44
NasdaqGS:CECO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $296.24 + $625.44
$921.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $921.68 / 69.76
$13.21
NasdaqGS:CECO Discount to Share Price
Calculation Result
Value per share (USD) From above. $13.21
Current discount Discount to share price of $12.69
= -1 x ($12.69 - $13.21) / $13.21
4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Career Education is available for.
Intrinsic value
4%
Share price is $12.69 vs Future cash flow value of $13.21
Current Discount Checks
For Career Education to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Career Education's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Career Education's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Career Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Career Education's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CECO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-0.04
NasdaqGS:CECO Share Price ** NasdaqGS (2019-01-22) in USD $12.69
United States of America Consumer Services Industry PE Ratio Median Figure of 25 Publicly-Listed Consumer Services Companies 23.16x
United States of America Market PE Ratio Median Figure of 3,026 Publicly-Listed Companies 17.11x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Career Education.

NasdaqGS:CECO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CECO Share Price ÷ EPS (both in USD)

= 12.69 ÷ -0.04

-312.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Career Education is loss making, we can't compare its value to the US Consumer Services industry average.
  • Career Education is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Career Education's expected growth come at a high price?
Raw Data
NasdaqGS:CECO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -312.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
44.6%per year
United States of America Consumer Services Industry PEG Ratio Median Figure of 17 Publicly-Listed Consumer Services Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Career Education, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Career Education's assets?
Raw Data
NasdaqGS:CECO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $4.87
NasdaqGS:CECO Share Price * NasdaqGS (2019-01-22) in USD $12.69
United States of America Consumer Services Industry PB Ratio Median Figure of 47 Publicly-Listed Consumer Services Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,101 Publicly-Listed Companies 1.77x
NasdaqGS:CECO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CECO Share Price ÷ Book Value per Share (both in USD)

= 12.69 ÷ 4.87

2.61x

* Primary Listing of Career Education.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Career Education is overvalued based on assets compared to the US Consumer Services industry average.
X
Value checks
We assess Career Education's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Career Education has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Career Education expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
44.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Career Education expected to grow at an attractive rate?
  • Career Education's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Career Education's earnings growth is expected to exceed the United States of America market average.
  • Career Education's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CECO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CECO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 44.6%
NasdaqGS:CECO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 4.4%
United States of America Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 29.5%
United States of America Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 12.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.6%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CECO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CECO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 636 101 89 2
2019-12-31 606 98 80 3
2018-12-31 580 50 58 3
NasdaqGS:CECO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 579 26 -3
2018-06-30 578 27 -14
2018-03-31 582 28 -19
2017-12-31 596 -22 -31
2017-09-30 609 -39 -16
2017-06-30 631 -34 -20
2017-03-31 668 -22 -12
2016-12-31 704 6 -15
2016-09-30 749 16 157
2016-06-30 785 11 113
2016-03-31 819 -12 81
2015-12-31 847 -21 53

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Career Education's earnings are expected to grow significantly at over 20% yearly.
  • Career Education's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CECO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Career Education Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CECO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.23 1.24 1.21 2.00
2019-12-31 1.11 1.13 1.09 3.00
2018-12-31 0.81 0.82 0.79 3.00
NasdaqGS:CECO Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 -0.04
2018-06-30 -0.21
2018-03-31 -0.27
2017-12-31 -0.45
2017-09-30 -0.24
2017-06-30 -0.30
2017-03-31 -0.18
2016-12-31 -0.22
2016-09-30 2.31
2016-06-30 1.66
2016-03-31 1.19
2015-12-31 0.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Career Education is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Career Education's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Career Education has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Career Education performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Career Education's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Career Education does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Career Education's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Career Education's 1-year growth to the US Consumer Services industry average as it is not currently profitable.
Earnings and Revenue History
Career Education's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Career Education Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CECO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 578.91 -2.82 401.34
2018-06-30 578.21 -14.39 415.85
2018-03-31 582.39 -18.59 426.84
2017-12-31 596.44 -30.88 445.95
2017-09-30 608.57 -16.27 489.33
2017-06-30 631.21 -20.27 506.96
2017-03-31 667.62 -12.31 524.13
2016-12-31 704.39 -14.82 548.20
2016-09-30 749.08 157.45 549.01
2016-06-30 784.94 113.26 581.69
2016-03-31 819.15 80.64 624.75
2015-12-31 847.27 53.02 668.58
2015-09-30 994.14 -163.84 871.82
2015-06-30 973.48 -151.91 802.45
2015-03-31 942.82 -145.43 782.73
2014-12-31 913.96 -142.56 756.03
2014-09-30 629.14 -113.21 430.98
2014-06-30 690.49 -115.34 547.75
2014-03-31 760.52 -122.33 631.57
2013-12-31 1,017.23 -169.28 827.80
2013-09-30 1,074.80 -141.97 927.79
2013-06-30 1,146.79 -133.22 934.45
2013-03-31 1,192.56 -207.37 908.84
2012-12-31 1,019.90 -64.84 734.53
2012-09-30 1,476.15 -220.79 996.41
2012-06-30 1,588.40 -180.58 1,010.14
2012-03-31 1,771.30 -32.51 1,027.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Career Education has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Career Education has efficiently used its assets last year compared to the US Consumer Services industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Career Education improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Career Education's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Career Education has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Career Education's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Career Education's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Career Education is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Career Education's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Career Education's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Career Education has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Career Education Company Filings, last reported 3 months ago.

NasdaqGS:CECO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 339.65 0.00 188.37
2018-06-30 322.92 0.00 184.75
2018-03-31 312.97 0.00 182.24
2017-12-31 296.21 0.00 174.29
2017-09-30 339.39 0.00 168.08
2017-06-30 334.95 0.00 163.60
2017-03-31 327.07 0.00 156.59
2016-12-31 321.50 0.00 197.19
2016-09-30 355.02 0.00 206.81
2016-06-30 354.16 0.00 190.48
2016-03-31 341.41 0.00 170.40
2015-12-31 337.61 38.00 181.82
2015-09-30 194.44 0.00 185.73
2015-06-30 238.47 0.00 183.29
2015-03-31 257.95 0.00 192.43
2014-12-31 281.93 10.00 216.69
2014-09-30 305.68 0.00 237.66
2014-06-30 352.63 0.00 262.69
2014-03-31 398.13 0.00 302.51
2013-12-31 455.38 0.00 350.06
2013-09-30 491.13 0.00 83.13
2013-06-30 569.74 0.00 229.87
2013-03-31 596.47 0.10 287.77
2012-12-31 611.79 80.00 176.76
2012-09-30 671.67 0.31 373.32
2012-06-30 702.33 0.40 369.93
2012-03-31 809.08 0.52 389.86
  • Career Education has no debt.
  • Career Education had no debt 5 years ago.
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.

  • Whilst loss making Career Education has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Career Education has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -3.5% per year.
X
Financial health checks
We assess Career Education's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Career Education has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Career Education's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Career Education dividends.
If you bought $2,000 of Career Education shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Career Education's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Career Education's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CECO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1986 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CECO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
2018-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Career Education has not reported any payouts.
  • Unable to verify if Career Education's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Career Education's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Career Education has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Career Education's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Career Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Career Education has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Career Education's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Todd Nelson
COMPENSATION $5,186,788
AGE 59
TENURE AS CEO 3.4 years
CEO Bio

Mr. Todd S. Nelson has been the Chief Executive Officer and President of Career Education Corp. since August 12, 2015. Mr. Nelson served as the Chief Executive Officer of Education Management LLC since February 2007 until August 2012. He served as the Chief Executive Officer of Education Management Corporation (EDMC) from February 2, 2007 to August 15, 2012. He served as the President of Education Management LLC, from February 20, 2007 to December 2008 and Education Management LLC since February 2007. He was an Independent Consultant of EDMC from January 2006 to January 2007 and for Apollo Group, Inc. (alternate name Apollo Education Group, Inc.) from 1987 to January 2006. Mr. Nelson served as Chief Executive Officer of Apollo Group Inc. from August 2001 to January 2006, President from February 1998 to January 2006 and its Chairman of the Board from June 2004 to January 12, 2006. He joined Apollo in 1987 as Director of the University of Phoenix's Utah campus. He served as Vice President of Apollo Group Inc. from 1994 to February 1998 and an Executive Vice President of University of Phoenix from 1989 to February 1998. Mr. Nelson’s career has focused on the for-profit education industry for nearly 30 years. Mr. Nelson has experienced and led strategic growth initiatives during his prior industry positions, which provides insight and perspective as the Company implements its transformation strategy and seeks a return to sustainable growth. Mr. Nelson served as General Manager of Amembal and Isom from 1985 to 1987. He served as a General Manager for Vickers & Company from 1984 to 1985. He has extensive experience in higher education and distance learning. Mr. Nelson served as a Marketing Director of Summa Corporation from 1983 to 1984. He served as the Chairman of the Board at Education Management Corporation from August 15, 2012 to November 8, 2013 and served as its Director from February 20, 2007 to November 8, 2013. Mr. Nelson serves as a Member of Advisory Board at Clickety-Split, Inc. Mr. Nelson has been a Director of Career Education Corp. since August 12, 2015 and served as Director of Education Management LLC since February 2007 until November 2013. He served as a Director of Hypercom Corporation from April 3, 2006 to October 10, 2006 and Apollo Group Inc. until January 2006. He served as a Director of Voyager Learning Company (formerly ProQuest Co.) from January 4, 2004 to February 7, 2008. From 1987 to 1989, he served as a Director of University of Phoenix's Utah campus. He was a Member of the faculty at University of Nevada at Las Vegas from 1983 to 1984. Mr. Nelson holds a Masters degree in Business Administration from the University of Nevada and a Bachelor of Science degree from Brigham Young University.

CEO Compensation
  • Todd's compensation has increased whilst company is loss making.
  • Todd's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Career Education management team in years:

3.4
Average Tenure
55
Average Age
  • The tenure for the Career Education management team is about average.
Management Team

Todd Nelson

TITLE
CEO, President & Director
COMPENSATION
$5M
AGE
59
TENURE
3.4 yrs

Ashish Ghia

TITLE
Senior VP & CFO
COMPENSATION
$973K
AGE
41
TENURE
1.3 yrs

Jeffrey Ayers

TITLE
Senior VP
COMPENSATION
$2M
AGE
57
TENURE
11.1 yrs

John Kline

TITLE
Senior Vice President of American Intercontinental University
COMPENSATION
$1M
AGE
55
TENURE
3.3 yrs

Andrew Hurst

TITLE
Senior Vice President of Colorado Technical University
COMPENSATION
$1M
AGE
55
TENURE
3.3 yrs

Michele Peppers

TITLE
VP of Accounting & Reporting and Principal Accounting Officer
AGE
42
TENURE
3.8 yrs

Dave Czeszewski

TITLE
Senior VP & Chief Information Officer
COMPENSATION
$1M
AGE
54
TENURE
17.8 yrs

Beth Boeke

TITLE
Senior VP & Chief Human Resources Officer
TENURE
1 yrs

Virginia Carpenter

TITLE
Managing Director of Gibbs Division and Vice President of Gibbs Division

Deborah Snyder

TITLE
Chief Academic Officer for Career Schools Group
TENURE
6.4 yrs
Board of Directors Tenure

Average tenure and age of the Career Education board of directors in years:

3.8
Average Tenure
60
Average Age
  • The tenure for the Career Education board of directors is about average.
Board of Directors

Thomas Lally

TITLE
Chairman of the Board
COMPENSATION
$199K
AGE
74
TENURE
3.3 yrs

Todd Nelson

TITLE
CEO, President & Director
COMPENSATION
$5M
AGE
59
TENURE
3.4 yrs

Leslie Thornton

TITLE
Director
COMPENSATION
$164K
AGE
60
TENURE
13.1 yrs

Patrick Gross

TITLE
Director
COMPENSATION
$164K
AGE
73
TENURE
13.1 yrs

Greg Jackson

TITLE
Director
COMPENSATION
$164K
AGE
51
TENURE
10.2 yrs

Kenda Gonzales

TITLE
Director
COMPENSATION
$158K
AGE
60
TENURE
2.3 yrs

Dennis Chookaszian

TITLE
Independent Director
COMPENSATION
$154K
AGE
74
TENURE
16.3 yrs

Richard Wang

TITLE
Director
COMPENSATION
$149K
AGE
43
TENURE
3.8 yrs

William Hansen

TITLE
Director
COMPENSATION
$56K
AGE
59
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Sep 18 Sell Tenzing Global Management LLC Company 05. Sep 18 07. Sep 18 -250,000 $15.48 $-3,801,825
31. Aug 18 Sell Michele Peppers Individual 30. Aug 18 30. Aug 18 -5,001 $15.98 $-79,884
08. Jun 18 Sell Tenzing Global Management LLC Company 06. Jun 18 08. Jun 18 -250,000 $16.25 $-4,049,745
X
Management checks
We assess Career Education's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Career Education has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did Career Education Corporation (NASDAQ:CECO) Insiders Sell Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Career Education Corporation (NASDAQ:CECO). … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

A Close Look At Career Education Corporation’s (NASDAQ:CECO) 24% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

At US$13.49, Is It Time To Put Career Education Corporation (NASDAQ:CECO) On Your Watch List?

This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price? … A question to answer is whether Career Education's current trading price of $13.49 reflective of the actual value of the? … Let’s take a look at Career Education’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

How Does Investing In Career Education Corporation (NASDAQ:CECO) Impact The Volatility Of Your Portfolio?

The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

A Look At The Intrinsic Value Of Career Education Corporation (NASDAQ:CECO)

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Career Education Corporation (NASDAQ:CECO)'s Return on Capital

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Career Education is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St -

Career Education Corporation (NASDAQ:CECO) Investors Are Paying Above The Intrinsic Value

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is There Now An Opportunity In Career Education Corporation (NASDAQ:CECO)?

Career Education Corporation (NASDAQ:CECO), a consumer services company based in United States,. … Today I will analyse the most recent data on Career Education’s outlook and valuation to see if the opportunity still exists? … Career Education appears to be overvalued by 38.94% at the moment, based on my discounted cash flow valuation

Simply Wall St -

Is Career Education Corporation (NASDAQ:CECO) Expensive For A Reason? A Look At The Intrinsic Value

5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $40.00 $74.50 $66.40 $59.27 $52.91 Source Analyst x2 Analyst x2 Analyst x1 Extrapolated @ (-10.73%) Extrapolated @ (-10.73%) Present Value Discounted @ 9.04% $36.68 $62.66 $51.21 $41.93 $34.32 Present Value of 5-year Cash Flow (PVCF)= $227 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $53 × (1 + 2.9%) ÷ (9% – 2.9%) = $894 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $894 / ( 1 + 9%)5 = $580 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $807. … NasdaqGS:CECO Intrinsic Value Jun 6th 18 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Should You Be Concerned With Career Education Corporation's (NASDAQ:CECO) -51.01% Earnings Drop?

When Career Education Corporation (NASDAQ:CECO) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … For Career Education, its latest earnings (trailing twelve month) is -US$18.59M, which, in comparison to the previous year's level, has become more negative. … Career Education's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

Simply Wall St -

Company Info

Map
Description

Career Education Corporation operates colleges, institutions, and universities that provide education to student population in various career-oriented disciplines through online, campus based, and blended learning programs in the United States. The company operates through three segments: Colorado Technical University (CTU), American InterContinental University (AIU), and All Other Campuses. Its colleges and universities include AIU, CTU, Le Cordon Bleu institutions, Briarcliffe College, Harrington College of Design, and Sanford-Brown College. The company offers doctoral, master’s, bachelor’s, and associate degrees, as well as diploma and certificate programs. It also provides academic programs in the career-oriented disciplines of business studies, nursing, computer science, engineering, information systems and technologies, cybersecurity, and healthcare management, as well as information technologies, and education and criminal justice; and educational programs in culinary arts, as well as patisserie and baking. As of December 31, 2017, the company had a total student enrollment of approximately 34,800 students. Career Education Corporation was founded in 1994 and is headquartered in Schaumburg, Illinois.

Details
Name: Career Education Corporation
CECO
Exchange: NasdaqGS
Founded: 1994
$896,428,747
69,760,992
Website: http://www.careered.com
Address: Career Education Corporation
231 North Martingale Road,
Schaumburg,
Illinois, 60173,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CECO Common Stock Nasdaq Global Select US USD 29. Jan 1998
DB CE1 Common Stock Deutsche Boerse AG DE EUR 29. Jan 1998
Number of employees
Current staff
Staff numbers
3,359
Career Education employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/22 23:34
End of day share price update: 2019/01/22 00:00
Last estimates confirmation: 2019/01/08
Last earnings filing: 2018/11/01
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.