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Laureate Education

Nasdaq:LAUR
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LAUR
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. The last earnings update was 51 days ago. More info.


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LAUR Share Price and Events
7 Day Returns
0.4%
NasdaqGS:LAUR
-1.4%
US Consumer Services
0.2%
US Market
1 Year Returns
9.9%
NasdaqGS:LAUR
1.4%
US Consumer Services
6.3%
US Market
LAUR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Laureate Education (LAUR) 0.4% 1.5% 3.1% 9.9% - -
US Consumer Services -1.4% 2.5% 14.7% 1.4% 101.6% 124.3%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • LAUR outperformed the Consumer Services industry which returned 1.4% over the past year.
  • LAUR outperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
LAUR
Industry
5yr Volatility vs Market

LAUR Value

 Is Laureate 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 Laureate 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 Laureate Education.

NasdaqGS:LAUR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11%
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:LAUR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.979 (1 + (1- 21%) (76.37%))
1.382
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.38
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.382 * 5.96%)
10.97%

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

The calculations below outline how an intrinsic value for Laureate Education is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:LAUR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.97%)
2019 141.47 Analyst x3 127.48
2020 269.70 Analyst x3 219.02
2021 340.00 Analyst x1 248.82
2022 397.71 Est @ 16.97% 262.29
2023 448.21 Est @ 12.7% 266.38
2024 491.73 Est @ 9.71% 263.36
2025 529.17 Est @ 7.62% 255.40
2026 561.71 Est @ 6.15% 244.31
2027 590.49 Est @ 5.12% 231.45
2028 616.51 Est @ 4.41% 217.76
Present value of next 10 years cash flows $2,336.27
NasdaqGS:LAUR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $616.51 × (1 + 2.73%) ÷ (10.97% – 2.73%)
$7,688.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,688.39 ÷ (1 + 10.97%)10
$2,715.64
NasdaqGS:LAUR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,336.27 + $2,715.64
$5,051.92
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,051.92 / 224.64
$22.49
NasdaqGS:LAUR Discount to Share Price
Calculation Result
Value per share (USD) From above. $22.49
Current discount Discount to share price of $15.75
= -1 x ($15.75 - $22.49) / $22.49
30%

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

Current Discount
Amount off the current price Laureate Education is available for.
Intrinsic value
30%
Share price is $15.75 vs Future cash flow value of $22.49
Current Discount Checks
For Laureate Education to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Laureate Education's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Laureate 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 Laureate Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Laureate Education's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LAUR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.03
NasdaqGS:LAUR Share Price ** NasdaqGS (2019-04-18) in USD $15.75
United States of America Consumer Services Industry PE Ratio Median Figure of 25 Publicly-Listed Consumer Services Companies 30.1x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

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

** Primary Listing of Laureate Education.

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

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

= 15.75 ÷ 0.03

588.74x

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

  • Laureate Education is overvalued based on earnings compared to the US Consumer Services industry average.
  • Laureate Education is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Laureate Education's expected growth come at a high price?
Raw Data
NasdaqGS:LAUR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 588.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
64%per year
United States of America Consumer Services Industry PEG Ratio Median Figure of 18 Publicly-Listed Consumer Services Companies 1.56x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:LAUR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 588.74x ÷ 64%

9.19x

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

  • Laureate Education is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Laureate Education's assets?
Raw Data
NasdaqGS:LAUR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.19
NasdaqGS:LAUR Share Price * NasdaqGS (2019-04-18) in USD $15.75
United States of America Consumer Services Industry PB Ratio Median Figure of 48 Publicly-Listed Consumer Services Companies 2.6x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NasdaqGS:LAUR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 15.75 ÷ 9.19

1.71x

* Primary Listing of Laureate Education.

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

  • Laureate Education is good value based on assets compared to the US Consumer Services industry average.
X
Value checks
We assess Laureate 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. Laureate Education has a total score of 2/6, 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.

LAUR Future Performance

 How is Laureate Education expected to perform in the next 1 to 3 years based on estimates from 8 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
64%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Laureate Education expected to grow at an attractive rate?
  • Laureate Education's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Laureate Education's earnings growth is expected to exceed the United States of America market average.
  • Laureate Education's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LAUR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LAUR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 64%
NasdaqGS:LAUR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.1%
United States of America Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 33.6%
United States of America Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*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:LAUR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LAUR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 3,686 479 231 3
2020-12-31 3,519 451 212 7
2019-12-31 3,371 308 92 8
NasdaqGS:LAUR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,350 397 6
2018-09-30 4,380 275 110
2018-06-30 4,411 273 6
2018-03-31 4,407 160 66
2017-12-31 3,386 192 -280
2017-09-30 3,611 200 -304
2017-06-30 3,722 107 -70
2017-03-31 4,194 237 310
2016-12-31 3,302 192 337
2016-09-30 4,219 146 314
2016-06-30 4,274 185 103
2016-03-31 4,313 169 -198

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Laureate Education's earnings are expected to grow significantly at over 20% yearly.
  • Laureate Education's revenue is expected to grow by 3.1% 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:LAUR 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 8 Analyst Estimates (S&P Global) See Below

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

NasdaqGS:LAUR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.09 1.21 1.01 3.00
2020-12-31 1.01 1.62 0.72 8.00
2019-12-31 0.49 0.56 0.40 5.00
NasdaqGS:LAUR Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.03
2018-09-30 0.54
2018-06-30 0.03
2018-03-31 0.37
2017-12-31 -1.62
2017-09-30 -1.91
2017-06-30 -0.47
2017-03-31 2.24
2016-12-31 2.53
2016-09-30 2.36
2016-06-30 0.77
2016-03-31 -1.49

*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.
  • Laureate Education is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Laureate 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.
Laureate 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.

LAUR Past Performance

  How has Laureate 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 Laureate 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.
  • Laureate Education has delivered over 20% year on year earnings growth in the past 5 years.
  • Laureate Education has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Laureate Education has become profitable in the last year making it difficult to compare the US Consumer Services industry average.
Earnings and Revenue History
Laureate 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 Laureate Education Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LAUR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,350.22 5.69 700.92
2018-09-30 4,379.82 110.38 785.14
2018-06-30 4,411.32 6.24 776.46
2018-03-31 4,407.34 66.13 794.60
2017-12-31 3,385.88 -279.96 763.30
2017-09-30 3,610.58 -304.03 777.02
2017-06-30 3,721.83 -69.85 765.17
2017-03-31 4,193.59 310.28 731.37
2016-12-31 3,301.86 336.86 669.04
2016-09-30 4,218.80 313.90 731.45
2016-06-30 4,274.34 102.51 724.58
2016-03-31 4,312.61 -198.25 714.95
2015-12-31 4,291.66 -322.42 706.99
2015-09-30 4,470.37 -256.36 707.62
2015-06-30 4,453.83 -329.51 699.86
2015-03-31 4,241.96 -384.14 684.83
2014-12-31 4,414.68 -166.74 677.81
2013-12-31 3,913.88 -84.36 614.42
2012-12-31 3,567.12 -211.12 545.80

*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 Laureate Education has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Laureate Education used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.
  • Laureate Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Laureate 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.
Laureate Education has a total score of 1/6, 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.

LAUR Health

 How is Laureate 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 Laureate Education's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Laureate Education is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Laureate Education's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Laureate 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.
  • Debt is not covered by short term assets, assets are 0.5x debt.
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 Laureate Education Company Filings, last reported 3 months ago.

NasdaqGS:LAUR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,065.34 2,702.11 388.49
2018-09-30 1,984.34 2,617.29 392.35
2018-06-30 2,128.08 2,921.76 402.40
2018-03-31 2,229.65 2,998.97 479.01
2017-12-31 2,001.28 3,104.84 320.57
2017-09-30 1,899.14 3,218.50 504.96
2017-06-30 1,705.16 3,512.22 367.16
2017-03-31 1,546.19 3,818.12 856.31
2016-12-31 1,021.23 3,821.33 464.97
2016-09-30 701.59 4,037.74 481.47
2016-06-30
2016-03-31 311.42 4,595.82 364.60
2015-12-31 407.17 4,531.30 458.91
2015-09-30 447.86 4,501.30 618.39
2015-06-30 822.65 4,498.48 370.80
2015-03-31 1,100.42 4,511.03 461.58
2014-12-31 1,100.42 4,511.03 461.58
2013-12-31 1,551.30 4,393.29 559.90
2012-12-31
  • Laureate Education's level of debt (130.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (283.4% vs 130.8% today).
  • Debt is not well covered by operating cash flow (14.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Laureate 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. Laureate Education has a total score of 2/6, 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.

LAUR Dividends

 What is Laureate 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 Laureate Education dividends. Estimated to be 0.22% next year.
If you bought $2,000 of Laureate 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 Laureate Education's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Laureate 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:LAUR 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 8 Analyst Estimates (S&P Global) See Below
United States of America Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

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

NasdaqGS:LAUR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.02 3.00
2019-12-31 0.06 3.00

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

  • Unable to perform a dividend volatility check as Laureate Education has not reported any payouts.
  • Unable to verify if Laureate Education's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Laureate Education's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Laureate Education has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Laureate Education's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Laureate Education's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Laureate Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Laureate 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.

LAUR Management

 What is the CEO of Laureate 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
Eilif Serck-Hanssen
COMPENSATION $5,842,692
AGE 52
TENURE AS CEO 1.3 years
CEO Bio

Mr. Eilif Serck-Hanssen has been Chief Executive Officer and Director of Laureate Education, Inc. since January 01, 2018. Mr. Serck-Hanssen served as President and Chief Administrative Officer of Laureate Education, Inc. since March 28, 2017 until January 2018 and served as its Chief Financial Officer since July 2008 until March 2017. Mr. Serck-Hanssen served as an Executive Vice President of Laureate Education, Inc. since July 2008 until March 28, 2017. He served as Chief Financial Officer and President of International Operations & Expansion of XOJET Inc. from March 24, 2008 to July 2008. He served as Chief Financial Officer and Executive Vice President of Eos Airlines until February 2008. He served as Senior Vice President of Finance at US Airways Group Inc., since May 2004 and of its subsidiary, US Airways and served as its Treasurer since July 15, 2003. He served as a Vice President of Finance at US Airways Group Inc. since July 15, 2003, with responsibility for treasury, tax and fuel. He joined US Airways Group Inc., from Northwest Airlines, where he served as its Managing Director of Finance and Assistant Treasurer. Prior to joining the airline industry, Mr. Serck-Hanssen spent over five years with PepsiCo, Inc., in various international locations and three years with PricewaterhouseCoopers LLP (formerly Coopers & Lybrand Deloitte) in London. He held executive positions at PepsiCo. Mr. Serck-Hanssen earned his M.B.A. in finance at the University Of Chicago Booth School Of Business, a B.A. in management science from the University of Kent at Canterbury (United Kingdom), and a B.S. in civil engineering from the Bergen University College (Norway). He is an Associate Chartered Accountant (ACA) and a member of the Institute of Chartered Accountants in England and Wales.

CEO Compensation
  • Eilif's compensation has increased in line with Laureate Education recently becoming profitable.
  • Eilif's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

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

1.3
Average Tenure
53.5
Average Age
  • The average tenure for the Laureate Education management team is less than 2 years, this suggests a new team.
Management Team

Eilif Serck-Hanssen

TITLE
CEO & Director
COMPENSATION
$6M
AGE
52
TENURE
1.3 yrs

Ricardo Berckemeyer

TITLE
President & COO
COMPENSATION
$7M
AGE
48
TENURE
1.3 yrs

JJ Charhon

TITLE
Executive VP & CFO
AGE
53
TENURE
1.3 yrs

Tal Darmon

TITLE
Chief Accounting Officer

Rick Patro

TITLE
Chief Information Officer
AGE
57
TENURE
1.4 yrs

Victoria Silbey

TITLE
Senior VP
AGE
54
TENURE
1.6 yrs

Tim Grace

TITLE
Chief Human Resources Officer
AGE
54
TENURE
0.9 yrs

Juan Hurtado

TITLE
Senior VP of Operations and Chief of Learning & Innovation
AGE
53
TENURE
1.3 yrs

Marcelo Cardoso

TITLE
Chief Transformation Officer
TENURE
0.1 yrs

Paula Singer

TITLE
Chief Executive Officer of Walden & Laureate Online Partners
COMPENSATION
$3M
AGE
64
TENURE
1.3 yrs
Board of Directors Tenure

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

5.6
Average Tenure
56.5
Average Age
  • The tenure for the Laureate Education board of directors is about average.
Board of Directors

Ken Freeman

TITLE
Chairman of the Board
COMPENSATION
$170K
AGE
67
TENURE
0.3 yrs

Eilif Serck-Hanssen

TITLE
CEO & Director
COMPENSATION
$6M
AGE
52
TENURE
1.3 yrs

Brian Carroll

TITLE
Director
COMPENSATION
$70K
AGE
47
TENURE
11.8 yrs

George Muñoz

TITLE
Director
COMPENSATION
$274K
AGE
66
TENURE
6.1 yrs

William Cornog

TITLE
Director
COMPENSATION
$74K
AGE
54
TENURE
2.2 yrs

Steven Taslitz

TITLE
Director
COMPENSATION
$61K
AGE
59
TENURE
11.8 yrs

Ian Snow

TITLE
Director
COMPENSATION
$65K
AGE
48
TENURE
11.8 yrs

Pedro del Corro García Lomas

TITLE
Director
COMPENSATION
$63K
AGE
61
TENURE
2.2 yrs

Judith Rodin

TITLE
Director
COMPENSATION
$293K
AGE
73
TENURE
5.3 yrs

Andrew Cohen

TITLE
Director
COMPENSATION
$63K
AGE
46
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • Laureate Education insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. Mar 19 Sell José Loureiro Individual 14. Mar 19 14. Mar 19 -28,140 $15.02 $-422,663
14. Mar 19 Sell Marcelo Cardoso Individual 14. Mar 19 14. Mar 19 -6,900 $15.24 $-105,156
29. May 18 Sell Apollo Global Management, LLC Company 03. May 18 16. May 18 -2,369,921 $14.74 $-34,177,323
X
Management checks
We assess Laureate 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. Laureate 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.

LAUR News

Simply Wall St News

Are Laureate Education, Inc.'s (NASDAQ:LAUR) Interest Costs Too High?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Laureate Education, Inc. … Don’t forget that this is a general and concentrated examination of Laureate Education’s financial health, so you should conduct further analysis. … View our latest analysis for Laureate Education

Simply Wall St -

Laureate Education, Inc.’s (NASDAQ:LAUR) Investment Returns Are Lagging Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Laureate Education Inc's (NASDAQ:LAUR) ROE Of 11% Concerning?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Laureate Education Inc (NASDAQ:LAUR). … That means that for every $1 worth of shareholders' equity, it generated $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Confident Are Insiders About Laureate Education Inc (NASDAQ:LAUR)?

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through universities and higher education institutions. … Laureate Education's insiders have divested from. … Generally, insiders selling shares in their own firm sends a bearish signal

Simply Wall St -

Is Laureate Education Inc's (NASDAQ:LAUR) 17.30% ROE Strong Compared To Its Industry?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … View our latest analysis for Laureate Education

Simply Wall St -

Estimating The Fair Value Of Laureate Education Inc (NASDAQ:LAUR)

How far off is Laureate Education Inc (NASDAQ:LAUR) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

How Financially Strong Is Laureate Education Inc (NASDAQ:LAUR)?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Laureate Education Inc (NASDAQ:LAUR), with a market cap of US$3.45b, are often out of the spotlight. … Don’t forget that this is a general and concentrated examination of Laureate Education’s financial health, so you should conduct further analysis. … Check out our latest analysis for Laureate Education

Simply Wall St -

What Do Analysts Think About Laureate Education Inc's (NASDAQ:LAUR) Profit Growth?

As analysts project … Laureate Education Inc (NASDAQ:LAUR) to … in earnings of -11.07% annualised

Simply Wall St -

Negative Sentiment Around Laureate Education Inc (NASDAQ:LAUR) Is Justified

Whether a company has a good future, in terms of its business operation and financial health, is an important question to address. … At 223.86 million shares, that's a US$3.24B market cap - which is expensive for a company that has a 5-year cumulative average growth rate (CAGR) of 0.77% (source: analyst consensus). … A good company is reflected in its financials, and for LAUR, the financials don't look good.

Simply Wall St -

Who Are The Largest Shareholders In Laureate Education Inc (NASDAQ:LAUR)?

Although LAUR has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. … Although this doesn't necessarily lead to high short-term volatility, we should dig deeper into LAUR's ownership structure to find how the remaining owner types can affect its investment profile. … Thus, investors should dig deeper into LAUR's business relations with these companies and how it can affect shareholder returns in the long-term.Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.

Simply Wall St -

LAUR Company Info

Description

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 operates through five segments: Brazil, Mexico, Andean, Rest of World, and Online & Partnerships. The company 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. It also operates online institutions that offer professional degree programs primarily for the working adults with undergraduate and graduate degree programs. 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.

Details
Name: Laureate Education, Inc.
LAUR
Exchange: NasdaqGS
Founded: 1989
$3,538,077,448
224,639,838
Website: http://www.laureate.net
Address: Laureate Education, Inc.
650 South Exeter Street,
Baltimore,
Maryland, 21202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LAUR Class A Common Stock Nasdaq Global Select US USD 01. Feb 2017
DB LA3A Class A Common Stock Deutsche Boerse AG DE EUR 01. Feb 2017
Number of employees
Current staff
Staff numbers
49,500
Laureate Education employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 00:38
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.