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

Flawless balance sheet and good value.


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

-0.8%

CECO

-0.3%

US Consumer Services

1.0%

US Market


1 Year Return

5.7%

CECO

27.5%

US Consumer Services

8.0%

US Market

Return vs Industry: CECO underperformed the US Consumer Services industry which returned 27.5% over the past year.

Return vs Market: CECO underperformed the US Market which returned 8% over the past year.


Shareholder returns

CECOIndustryMarket
7 Day-0.8%-0.3%1.0%
30 Day-12.7%-0.3%-0.07%
90 Day-24.8%-3.4%-1.0%
1 Year5.7%5.7%28.2%27.5%10.4%8.0%
3 Year106.1%106.1%102.8%91.8%46.2%36.7%
5 Year190.6%190.6%142.4%117.0%64.3%46.2%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CECO ($14.76) is trading below our estimate of fair value ($53.92)

Significantly Below Fair Value: CECO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CECO is good value based on its PE Ratio (19.2x) compared to the Consumer Services industry average (26.2x).

PE vs Market: CECO is poor value based on its PE Ratio (19.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CECO is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CECO is overvalued based on its PB Ratio (2.7x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

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

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CECO's forecast earnings growth (44.4% per year) is above the savings rate (2.7%).

Earnings vs Market: CECO's earnings (44.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CECO's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CECO's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CECO's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: CECO has become profitable over the past 5 years, growing earnings by 45% per year.

Accelerating Growth: CECO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CECO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (3.9%).


Return on Equity

High ROE: CECO's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: CECO has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: CECO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Career Education's financial position?


Financial Position Analysis

Short Term Liabilities: CECO's short term assets ($320.9M) exceeds its short term liabilities ($128.5M)

Long Term Liabilities: CECO's short term assets (320.9M) exceeds its long term liabilities (52.1M)


Debt to Equity History and Analysis

Debt Level: CECO is debt free.

Reducing Debt: CECO had no debt 5 years ago.

Debt Coverage: CECO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CECO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CECO has a low level of unsold assets or inventory.

Debt Coverage by Assets: CECO's 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 vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CECO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CECO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CECO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CECO'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 CECO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Todd Nelson (60yo)

4.2yrs

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

Compensation vs. Market: Todd's total compensation ($USD7.20M) is about average for companies of similar size in the US market ($USD2.67M).

Compensation vs Earnings: Todd's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.0yrs

Average Tenure

56yo

Average Age

Experienced Management: CECO's management team is considered experienced (4 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

61yo

Average Age

Experienced Board: CECO's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: CECO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$534,97818 Sep 19
Andrew Hurst
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Colorado Technical University
Shares28,042
Max PriceUS$19.18
SellUS$322,24326 Aug 19
David Czeszewski
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares14,659
Max PriceUS$22.35
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

Ownership Breakdown


Management Team

  • Todd Nelson (60yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$7.20m
  • Jeffrey Ayers (58yo)

    Senior VP

    • Tenure: 11.8yrs
    • Compensation: US$1.86m
  • John Kline (56yo)

    Senior Vice President of American Intercontinental University

    • Tenure: 4yrs
    • Compensation: US$1.27m
  • Virginia Carpenter

    Managing Director of Gibbs Division and Vice President of Gibbs Division

    • Tenure: 0yrs
  • Dave Czeszewski (55yo)

    Senior VP & Chief Information Officer

    • Tenure: 18.5yrs
    • Compensation: US$1.19m
  • Michele Peppers (43yo)

    VP of Accounting & Reporting and Chief Accounting Officer

    • Tenure: 4.5yrs
  • Andrew Hurst (56yo)

    Senior Vice President of Colorado Technical University

    • Tenure: 4yrs
    • Compensation: US$1.60m
  • Ashish Ghia (42yo)

    Senior VP & CFO

    • Tenure: 2.1yrs
    • Compensation: US$1.59m
  • Beth Boeke

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Christina Kline

    Chief Marketing Officer

    • Tenure: 0.7yrs

Board Members

  • Pat Gross (74yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$173.25k
  • Todd Nelson (60yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$7.20m
  • Kenda Gonzales (61yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$173.25k
  • Dennis Chookaszian (75yo)

    Independent Director

    • Tenure: 17yrs
    • Compensation: US$158.25k
  • Thomas Lally (75yo)

    Independent Chairman of the Board

    • Tenure: 4yrs
    • Compensation: US$208.25k
  • William Hansen (60yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$158.25k
  • Greg Jackson (52yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$173.25k
  • Leslie Thornton (61yo)

    Independent Director

    • Tenure: 13.8yrs
    • 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$1.035b
  • 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 Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 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.