NasdaqGS:CECO

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Career Education is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Career Education's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

NasdaqGS:CECO

2.8%

US Consumer Services

2.1%

US Market


1 Year Return

30.6%

NasdaqGS:CECO

13.3%

US Consumer Services

-0.04%

US Market

CECO outperformed the Consumer Services industry which returned 13.3% over the past year.

CECO outperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

CECOIndustryMarket
7 Day-2.4%2.8%2.1%
30 Day9.4%0.3%-3.2%
90 Day12.2%10.5%2.8%
1 Year30.6%30.6%17.4%13.3%2.2%-0.04%
3 Year219.7%219.7%115.5%103.3%41.5%32.3%
5 Year292.5%292.5%142.2%117.5%55.0%37.8%

Price Volatility Vs. Market

How volatile is Career Education's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Career Education's share price is below the future cash flow value, and at a moderate discount (> 20%).

Career Education's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Career Education is overvalued based on earnings compared to the US Consumer Services industry average.

Career Education is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Career Education is good value based on expected growth next year.


Price Based on Value of Assets

Career Education is overvalued based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is Career Education expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Career Education's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Career Education's earnings are expected to grow significantly at over 20% yearly.

Career Education's revenue growth is positive but not above the United States of America market average.

Career Education's earnings growth is expected to exceed the United States of America market average.

Career Education's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Career Education will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Career Education performed over the past 5 years?

45.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Career Education has delivered over 20% year on year earnings growth in the past 5 years.

Career Education has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Career Education has become profitable in the last year making it difficult to compare the US Consumer Services industry average.


Return on Equity

Career Education has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Career Education used its assets more efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

Career Education has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Career Education's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Career Education's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Career Education's debt level has increased without past 5-year debt data.

Operating cash flow is negative therefore debt is not well covered.

Career Education has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are -4.5168289512759E+16x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Todd Nelson (60yo)

4.0yrs

Tenure

US$7,198,735

Compensation

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 Feb ...


CEO Compensation Analysis

Todd's remuneration is higher than average for companies of similar size in United States of America.

Todd's compensation has increased in line with Career Education recently becoming profitable.


Management Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

The tenure for the Career Education management team is about average.


Board Age and Tenure

7.4yrs

Average Tenure

61yo

Average Age

The tenure for the Career Education board of directors is about average.


Insider Trading

Career Education individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$111,10020 Aug 19
John Kline
EntityIndividual
Role
Senior Key Executive
Senior Vice President of American Intercontinental University
Shares5,000
Max PriceUS$22.22
SellUS$221,70020 Aug 19
Michele Peppers
EntityIndividual
Role
Chief Accounting Officer
VP of Accounting & Reporting and Chief Accounting Officer
Shares10,000
Max PriceUS$22.24
SellUS$107,80016 Aug 19
Michele Peppers
EntityIndividual
Role
Chief Accounting Officer
VP of Accounting & Reporting and Chief Accounting Officer
Shares5,000
Max PriceUS$21.56
SellUS$388,82314 Aug 19
David Czeszewski
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares18,186
Max PriceUS$21.75
SellUS$3,801,82507 Sep 18
Tenzing Global Management LLC
EntityCompany
Shares250,000
Max PriceUS$15.48
SellUS$79,88431 Aug 18
Michele Peppers
EntityIndividual
Role
Chief Accounting Officer
VP of Accounting & Reporting and Chief Accounting Officer
Shares5,001
Max PriceUS$15.98

Ownership Breakdown


Management Team

  • Todd Nelson (60yo)

    President

    • Tenure: 4.0yrs
    • Compensation: US$7.20m
  • Jeffrey Ayers (58yo)

    Senior VP

    • Tenure: 11.7yrs
    • Compensation: US$1.86m
  • John Kline (56yo)

    Senior Vice President of American Intercontinental University

    • Tenure: 3.8yrs
    • Compensation: US$1.27m
  • Virginia Carpenter

    Managing Director of Gibbs Division and Vice President of Gibbs Division

    • Tenure: 0.0yrs
  • Dave Czeszewski (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 18.3yrs
    • Compensation: US$1.19m
  • Michele Peppers (43yo)

    VP of Accounting & Reporting and Chief Accounting Officer

    • Tenure: 4.3yrs
  • Andrew Hurst (56yo)

    Senior Vice President of Colorado Technical University

    • Tenure: 3.8yrs
    • Compensation: US$1.60m
  • Ashish Ghia (42yo)

    Senior VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$1.59m
  • Beth Boeke

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.6yrs
  • Christina Kline

    Chief Marketing Officer

    • Tenure: 0.5yrs

Board Members

  • Pat Gross (74yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$173.25k
  • Todd Nelson (60yo)

    President

    • Tenure: 4.0yrs
    • Compensation: US$7.20m
  • Kenda Gonzales (61yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$173.25k
  • Dennis Chookaszian (75yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$158.25k
  • Thomas Lally (75yo)

    Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$208.25k
  • William Hansen (60yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$158.25k
  • Greg Jackson (52yo)

    Director

    • Tenure: 10.8yrs
    • Compensation: US$173.25k
  • Leslie Thornton (61yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$173.25k

Company Information

Career Education Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Career Education Corporation
  • Ticker: CECO
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.511b
  • Shares outstanding: 70.11m
  • Website: https://www.careered.com

Number of Employees


Location

  • Career Education Corporation
  • 231 North Martingale Road
  • Schaumburg
  • Illinois
  • 60173
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CECONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1998
CE1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1998

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:33
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.