NasdaqGS:LAUR

Stock Analysis Report

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.

Snowflake

Fundamentals

Fair value 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.06%

LAUR

-0.06%

US Consumer Services

0.4%

US Market


1 Year Return

16.5%

LAUR

19.2%

US Consumer Services

13.1%

US Market

Return vs Industry: LAUR underperformed the US Consumer Services industry which returned 19.2% over the past year.

Return vs Market: LAUR exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

LAURIndustryMarket
7 Day-0.06%-0.06%0.4%
30 Day8.4%0.1%4.0%
90 Day-1.1%-0.8%7.4%
1 Year16.5%16.5%19.8%19.2%15.6%13.1%
3 Yearn/a100.3%89.4%48.2%38.6%
5 Yearn/a131.4%106.0%62.6%44.6%

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?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAUR ($16.84) is trading below our estimate of fair value ($31.97)

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


Price To Earnings Ratio

PE vs Industry: LAUR is unprofitable, so we can't compare its PE Ratio to the 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 (1.3x) compared to the US Consumer Services industry average (2x).


Next Steps

Future Growth

How is Laureate Education forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-49.2%

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 (2.7%).

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 (3.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: LAUR's revenue (3.5% per year) is forecast to grow slower than 20% 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 (10.7%).


Next Steps

Past Performance

How has Laureate Education performed over the past 5 years?

24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAUR has large one-off items impacting its financial results.

Growing Profit Margin: LAUR's current net profit margins (-0.2%) are lower than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: LAUR is unprofitable, but has reduced losses over the past 5 years at a rate of 24.3% 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 (7.1%).


Return on Equity

High ROE: LAUR has a negative Return on Equity (-0.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Laureate Education's financial position?


Financial Position Analysis

Short Term Liabilities: LAUR's short term assets ($1.1B) do not cover its short term liabilities ($1.4B)

Long Term Liabilities: LAUR's short term assets (1.1B) do not cover its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: LAUR's debt to equity ratio (42.9%) is considered high

Reducing Debt: LAUR's debt to equity ratio has reduced from 369.5% to 42.9% over the past 5 years.


Balance Sheet

Inventory Level: LAUR has a high level of physical assets or inventory.

Debt Coverage by Assets: LAUR's debt is not covered by short term assets (assets are 0.9x debt).


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 108.1% per year.


Next Steps

Dividend

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

0.29%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0.3%

Current dividend yield vs market & industry

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

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

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

1.8yrs

Average management tenure


CEO

Eilif Serck-Hanssen (53yo)

1.8yrs

Tenure

US$5,147,031

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 2019. Mr. Serck-Hanssen served as President a ...


CEO Compensation Analysis

Compensation vs Market: Eilif's total compensation ($USD5.15M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LAUR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

6.2yrs

Average Tenure

57.5yo

Average Age

Experienced Board: LAUR's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$422,66314 Mar 19
José Loureiro
EntityIndividual
Shares28,140
Max PriceUS$15.02
SellUS$105,15614 Mar 19
Marcelo Cardoso
EntityIndividual
Shares6,900
Max PriceUS$15.24

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.1%.


Management Team

  • Paula Singer (65yo)

    Chief Executive Officer of Walden & Laureate Online Partners

    • Tenure: 1.8yrs
    • Compensation: US$2.51m
  • Eilif Serck-Hanssen (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$5.15m
  • Victoria Silbey (55yo)

    Senior VP

    • Tenure: 2.2yrs
  • Tim Grace (55yo)

    Chief Human Resources Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.88m
  • Rick Patro (58yo)

    Chief Information Officer

    • Tenure: 2yrs
  • Jonathan Kaplan (54yo)

    Chief Executive Officer of Laureate Online

    • Tenure: 2.8yrs
  • JJ Charhon (54yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$2.27m
  • Juan Hurtado (54yo)

    Senior VP of Global Operations & Learning and Innovation

    • Tenure: 1.8yrs
  • Adam Morse

    Senior VP of Corporate Finance & Global Treasurer

    • Tenure: 3.7yrs
  • Tal Darmon

    Chief Accounting Officer

    • Tenure: 0yrs

Board Members

  • Ian Snow (49yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$57.50k
  • Ken Freeman (68yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$330.84k
  • Judith Rodin (74yo)

    Director

    • Tenure: 5.9yrs
    • Compensation: US$282.51k
  • Steven Taslitz (60yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$60.00k
  • Pedro del Corro García Lomas (62yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$60.01k
  • George Muñoz (67yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$260.00k
  • Brian Carroll (48yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$70.00k
  • Eilif Serck-Hanssen (53yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$5.15m
  • Andrew Cohen (47yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: US$60.01k
  • William Cornog (55yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$75.01k

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$3.682b
  • Shares outstanding: 218.62m
  • Website: https://www.laureate.net

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LA3ADB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 2017
LAURNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDFeb 2017

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 operates throug ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:17
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.