NasdaqGS:LAUR

Stock Analysis Report

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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 Analysis

Undervalued with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.5%

LAUR

6.8%

US Consumer Services

2.3%

US Market


1 Year Return

-38.8%

LAUR

34.5%

US Consumer Services

6.7%

US Market

Return vs Industry: LAUR underperformed the US Consumer Services industry which returned 29% over the past year.

Return vs Market: LAUR underperformed the US Market which returned 6% over the past year.


Shareholder returns

LAURIndustryMarket
7 Day-3.5%6.8%2.3%
30 Day-20.1%10.7%-0.7%
90 Day-7.9%36.1%17.1%
1 Year-38.8%-38.8%34.9%34.5%9.0%6.7%
3 Year-45.4%-45.4%79.9%72.9%36.7%27.8%
5 Yearn/a207.9%185.1%65.2%46.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAUR ($9.57) is trading below our estimate of fair value ($32.2)

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


Price To Earnings Ratio

PE vs Industry: LAUR is good value based on its PE Ratio (8x) compared to the Consumer Services industry average (29.3x).

PE vs Market: LAUR is good value based on its PE Ratio (8x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: LAUR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LAUR is good value based on its PB Ratio (0.8x) compared to the US Consumer Services industry average (2.4x).


Next Steps

Future Growth

How is Laureate Education forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAUR's earnings are forecast to decline over the next 3 years (-20.1% per year).

Earnings vs Market: LAUR's earnings are forecast to decline over the next 3 years (-20.1% per year).

High Growth Earnings: LAUR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LAUR's revenue is expected to decline over the next 3 years (-0.4% per year).

High Growth Revenue: LAUR's revenue is forecast to decline over the next 3 years (-0.4% 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 (6.1%).


Next Steps

Past Performance

How has Laureate Education performed over the past 5 years?

29.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAUR has a large one-off loss of $56.9M impacting its March 31 2020 financial results.

Growing Profit Margin: LAUR's current net profit margins (8.2%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: LAUR has become profitable over the past 5 years, growing earnings by 29.1% per year.

Accelerating Growth: LAUR's earnings growth over the past year (149.1%) exceeds its 5-year average (29.1% per year).

Earnings vs Industry: LAUR earnings growth over the past year (149.1%) exceeded the Consumer Services industry 18.3%.


Return on Equity

High ROE: LAUR's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Laureate Education's financial position?


Financial Position Analysis

Short Term Liabilities: LAUR's short term assets ($1.3B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: LAUR's short term assets ($1.3B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: LAUR's debt to equity ratio (58.5%) is considered high.

Reducing Debt: LAUR's debt to equity ratio has reduced from 412.2% to 58.5% over the past 5 years.

Debt Coverage: LAUR's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: LAUR's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.19%

Forecast Dividend Yield


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?

2.5yrs

Average management tenure


CEO

Eilif Serck-Hanssen (54yo)

2.5yrs

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 ($USD5.04M) is about average for companies of similar size in the US market ($USD4.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eilif Serck-Hanssen
President2.5yrsUS$5.04m0.099% $2.0m
Jean-Jacques Charhon
Executive VP & CFO2.5yrsUS$3.00m0.097% $1.9m
Victoria Silbey
Senior VP2.83yrsUS$1.87m0.014% $284.4k
Timothy Grace
Chief Human Resources Officer2.17yrsUS$1.51m0.017% $332.6k
Paula Singer
Chief Executive Officer of Walden & Laureate Online Partners2.5yrsUS$1.46m0.0034% $68.3k
Juan José Hurtado
President & CEO of Laureate Mexico & Central America & Senior VP of Global Ope. & Learning & Inno.no datano data0.0066% $131.8k
Tal Darmon
Chief Accounting Officerno datano data0.011% $212.5k
Richard Patro
Chief Information Officer2.67yrsno datano data
Jesus Villate
Chief Executive Officer of Latin America0.33yrno datano data
Jonathan Kaplan
Chief Executive Officer of Laureate Online3.5yrsno datano data

2.5yrs

Average Tenure

55.5yo

Average Age

Experienced Management: LAUR's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eilif Serck-Hanssen
President2.5yrsUS$5.04m0.099% $2.0m
Ian Snow
Independent Director13yrsUS$57.50k0.0016% $32.5k
Kenneth Freeman
Independent Chairman of the Board1.5yrsUS$409.96k0.013% $270.4k
Judith Rodin
Independent Director6.58yrsUS$282.48k0.021% $422.8k
Steven Taslitz
Director13yrsUS$60.00k0.0016% $32.5k
Pedro del Corro García Lomas
Independent Director3.42yrsUS$60.00kno data
George Muñoz
Independent Director7.33yrsUS$259.98k0.034% $673.9k
Brian Carroll
Independent Director13yrsUS$70.00k0.015% $310.9k
Andrew Cohen
Director7.08yrsUS$60.00kno data
William Cornog
Director3.42yrsUS$75.00k0.0061% $122.1k

6.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LAUR's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LAUR 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$2.009b
  • Shares outstanding: 209.89m
  • Website: https://www.laureate.net

Number of Employees


Location

  • Laureate Education, Inc.
  • 650 South Exeter Street
  • Baltimore
  • Maryland
  • 21202-4382
  • 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 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. The company also operates online institutions that offer professional degree programs primarily for the working adults with undergraduate and graduate degree programs. It provides its services in Brazil, Mexico, Chile, Peru, Australia, China, New Zealand, the United Kingdom, and the United States. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 23:53
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.