Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through universities and higher education institutions.
The last earnings update was 102 days ago.
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
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:LAUR DCF 1st Stage: Next 5 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
is considered below, and whether this is a fair price.
Price based on past earnings
Laureate Education's earnings available for a low price, and how does
this compare to other companies in the same industry?
Laureate Education's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Laureate Education's revenue is expected to grow by 0.8% 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.
Laureate Education's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
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.
Laureate Education's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Laureate Education's long term commitments exceed its cash and other short term assets.
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
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 0.6x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
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.
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
management team in years:
The average tenure for the Laureate Education management team is less than 2 years, this suggests a new team.
CEO & Director
President & COO
Executive VP & CFO
Chief Information Officer
Chief Human Resources Officer
Senior VP of Operations and Chief of Learning & Innovation
Chief Executive Officer of Walden & Laureate Online Partners
Chief Executive Officer of Laureate Online
Chief Executive Officer of Europe
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Laureate Education board of directors is about average.
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
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
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
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
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
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.
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.
Why Laureate Education Inc’s (NASDAQ:LAUR) Cash Is A Factor You Need To Consider
Laureate Education generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … I will be analysing Laureate Education’s FCF by looking at its FCF yield and its operating cash flow growth. … Free Cash Flow = Operating Cash Flows – Net Capital Expenditure Free Cash Flow Yield = Free Cash Flow / Enterprise Value where Enterprise Value = Market Capitalisation + Net Debt The business reinvests all its cash profits as well as borrows more money, to maintain and grow the company.
Is Laureate Education Inc's (NASDAQ:LAUR) Balance Sheet A Threat To Its Future?
Check out our latest analysis for Laureate Education How does LAUR’s operating cash flow stack up against its debt? … On top of this, LAUR has produced cash from operations of US$184.57M over the same time period, leading to an operating cash to total debt ratio of 4.83%, meaning that LAUR’s current level of operating cash is not high enough to cover debt. … Next Steps: With a high level of debt on its balance sheet, LAUR could still be in a financially strong position if its cash flow also stacked up.
Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through universities and higher education institutions. It operates through six segments: Brazil, Mexico, Andean & Iberian, Central America & U.S. Campuses, EMEAA, 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 professionally-oriented 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. Laureate Education, Inc. is a subsidiary of Wengen Alberta, Limited Partnership.
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