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Market Cap

US$2.6b

Last Updated

2021/04/13 22:49 UTC

Data Sources

Company Financials +

Executive Summary

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. More Details

Rewards

Earnings are forecast to grow 6.11% per year

Risk Analysis

No risks detected for LAUR from our risk checks.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LAUR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LAUR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.2%

LAUR

-3.0%

US Consumer Services

1.3%

US Market


1 Year Return

24.8%

LAUR

23.6%

US Consumer Services

53.9%

US Market

Return vs Industry: LAUR exceeded the US Consumer Services industry which returned 23.6% over the past year.

Return vs Market: LAUR underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

LAURIndustryMarket
7 Day-6.2%-3.0%1.3%
30 Day-10.4%-17.8%2.8%
90 Day-8.3%-11.9%6.6%
1 Year24.8%24.8%23.9%23.6%56.6%53.9%
3 Year-8.0%-8.0%34.9%30.5%62.7%52.3%
5 Yearn/a197.1%179.4%120.5%95.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Laureate Education undervalued compared to its fair value and its price relative to the market?

1.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LAUR ($13.04) is trading above our estimate of fair value ($11.28)

Significantly Below Fair Value: LAUR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LAUR is unprofitable, so we can't compare its PE Ratio to the US Consumer Services industry average.

PE vs Market: LAUR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LAUR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LAUR is good value based on its PB Ratio (1.2x) compared to the US Consumer Services industry average (2.5x).


Future Growth

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

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAUR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: LAUR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LAUR's is expected to become profitable in the next 3 years.

Revenue vs Market: LAUR's revenue is expected to decline over the next 3 years (-0.01% per year).

High Growth Revenue: LAUR's revenue is forecast to decline over the next 3 years (-0.01% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAUR's Return on Equity is forecast to be low in 3 years time (0.4%).


Past Performance

How has Laureate Education performed over the past 5 years?

2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAUR is currently unprofitable.

Growing Profit Margin: LAUR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LAUR is unprofitable, but has reduced losses over the past 5 years at a rate of 2.2% per year.

Accelerating Growth: Unable to compare LAUR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LAUR is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (-0.4%).


Return on Equity

High ROE: LAUR has a negative Return on Equity (-14.15%), as it is currently unprofitable.


Financial Health

How is Laureate Education's financial position?


Financial Position Analysis

Short Term Liabilities: LAUR's short term assets ($1.4B) exceed its short term liabilities ($804.6M).

Long Term Liabilities: LAUR's short term assets ($1.4B) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: LAUR's debt to equity ratio (42%) is considered high.

Reducing Debt: LAUR's debt to equity ratio has reduced from 1056.6% to 42% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LAUR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LAUR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.9% per year.


Dividend

What is Laureate Education current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Eilif Serck-Hanssen (54 yo)

3.25yrs

Tenure

US$5,035,173

Compensation

Mr. Eilif Serck-Hanssen has been Chief Executive Officer and Director of Laureate Education, Inc. since January 01, 2018 and also serves as its President since July 15, 2019. Mr. Serck-Hanssen served as Pr...


CEO Compensation Analysis

Compensation vs Market: Eilif's total compensation ($USD5.04M) is about average for companies of similar size in the US market ($USD5.09M).

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


Leadership Team

Experienced Management: LAUR's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: LAUR's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Laureate Education, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Laureate Education, Inc.
  • Ticker: LAUR
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$2.594b
  • Shares outstanding: 198.96m
  • Website: https://www.laureate.net

Number of Employees


Location

  • Laureate Education, Inc.
  • 650 South Exeter Street
  • Baltimore
  • Maryland
  • 21202-4382
  • United States

Listings


Biography

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. It offers a range ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 22:49
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.