Grand Canyon Education
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Grand Canyon Education, Inc. provides education services in the United States. The last earnings update was 76 days ago. More info.
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LOPE Share Price and Events
7 Day Returns
1 Year Returns
LOPE Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Grand Canyon Education (LOPE) | 5.3% | 5.2% | 5.8% | 6.2% | 202.6% | 184.5% |
| US Consumer Services | 1.1% | 1% | 7.5% | 2.3% | 97.4% | 127.6% |
| US Market | -1.2% | 0.7% | 1.7% | 3.4% | 35.5% | 41.6% |
1 Year Return vs Industry and Market
- LOPE outperformed the Consumer Services industry which returned 2.3% over the past year.
- LOPE outperformed the Market in United States of America which returned 3.4% over the past year.
Value
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
Grand Canyon 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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Grand Canyon Education.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 7.8% |
| 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.
| 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 | 0.74 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.741 (1 + (1- 21%) (4.33%)) |
0.843 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.84 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.843 * 5.96%) |
7.76% |
Discounted Cash Flow Calculation for NasdaqGS:LOPE using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Grand Canyon 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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 7.76%) |
|
|---|---|---|---|
| 2020 | 268.30 | Analyst x1 | 248.99 |
| 2021 | 287.13 | Est @ 7.02% | 247.28 |
| 2022 | 303.59 | Est @ 5.73% | 242.64 |
| 2023 | 318.26 | Est @ 4.83% | 236.05 |
| 2024 | 331.63 | Est @ 4.2% | 228.26 |
| 2025 | 344.10 | Est @ 3.76% | 219.80 |
| 2026 | 355.97 | Est @ 3.45% | 211.01 |
| 2027 | 367.48 | Est @ 3.23% | 202.16 |
| 2028 | 378.81 | Est @ 3.08% | 193.39 |
| 2029 | 390.09 | Est @ 2.98% | 184.81 |
| Present value of next 10 years cash flows | $2,214.40 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2029
× (1 + g) ÷ (Discount Rate – g)
= $390.09 × (1 + 2.73%) ÷ (7.76% – 2.73%) |
$7,972.76 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $7,972.76 ÷ (1 + 7.76%)10 |
$3,777.27 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $2,214.40 + $3,777.27 |
$5,991.67 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $5,991.67 / 47.82 |
$125.29 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $125.29 |
| Current discount | Discount to share price of
$126.47
= -1 x ($126.47 - $125.29) / $125.29 |
-0.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Grand Canyon Education is above its future cash flow value.
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 Grand Canyon Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Grand Canyon Education's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $4.79 |
| NasdaqGS:LOPE Share Price ** | NasdaqGS (2019-07-19) in USD | $126.47 |
| United States of America Consumer Services Industry PE Ratio | Median Figure of 25 Publicly-Listed Consumer Services Companies | 26.02x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 17.87x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Grand Canyon Education.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:LOPE Share Price ÷ EPS (both in USD) = 126.47 ÷ 4.79 |
26.38x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Grand Canyon Education is overvalued based on earnings compared to the US Consumer Services industry average.
- Grand Canyon Education is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Grand Canyon Education's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 26.38x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
11.5%per year |
| United States of America Consumer Services Industry PEG Ratio | Median Figure of 17 Publicly-Listed Consumer Services Companies | 1.46x |
| United States of America Market PEG Ratio | Median Figure of 2,119 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 26.38x ÷ 11.5% |
2.29x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Grand Canyon Education is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Grand Canyon Education's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $26.62 |
| NasdaqGS:LOPE Share Price * | NasdaqGS (2019-07-19) in USD | $126.47 |
| United States of America Consumer Services Industry PB Ratio | Median Figure of 51 Publicly-Listed Consumer Services Companies | 1.93x |
| United States of America Market PB Ratio | Median Figure of 5,247 Publicly-Listed Companies | 1.79x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:LOPE Share Price ÷ Book Value per Share (both in USD) = 126.47 ÷ 26.62 |
4.75x |
* Primary Listing of Grand Canyon Education.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Grand Canyon Education is overvalued based on assets compared to the US Consumer Services industry average.
Value checks
We assess Grand Canyon Education's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check) Grand Canyon Education has a total score of 0/6, 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.
Future Performance
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!
Earnings growth vs Low Risk Savings
- Grand Canyon Education's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Grand Canyon Education's earnings growth is positive but not above the United States of America market average.
- Grand Canyon Education's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:LOPE Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 11.5% |
| NasdaqGS:LOPE Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 9.3% |
| United States of America Consumer Services Industry Earnings Growth Rate | Market Cap Weighted Average | 33.1% |
| United States of America Consumer Services Industry Revenue Growth Rate | Market Cap Weighted Average | 14.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.4% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 968 | 316 | 1 | |
| 2020-12-31 | 862 | 295 | 279 | 4 |
| 2019-12-31 | 777 | 270 | 251 | 4 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 767 | 156 | 229 |
| 2018-12-31 | 846 | 199 | 229 |
| 2018-09-30 | 939 | 132 | 222 |
| 2018-06-30 | 1,020 | 315 | 227 |
| 2018-03-31 | 1,002 | 314 | 221 |
| 2017-12-31 | 974 | 305 | 203 |
| 2017-09-30 | 947 | 294 | 183 |
| 2017-06-30 | 922 | 259 | 173 |
| 2017-03-31 | 895 | 261 | 161 |
| 2016-12-31 | 873 | 238 | 149 |
| 2016-09-30 | 845 | 218 | 139 |
| 2016-06-30 | 828 | 205 | 143 |
*GAAP earnings excluding extraordinary items.
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 4 Analyst Estimates (S&P Global) | See Below |
All data from Grand Canyon Education Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 6.64 | 6.64 | 6.64 | 1.00 |
| 2020-12-31 | 5.78 | 5.85 | 5.70 | 2.00 |
| 2019-12-31 | 5.18 | 5.23 | 5.13 | 2.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 4.79 |
| 2018-12-31 | 4.81 |
| 2018-09-30 | 4.67 |
| 2018-06-30 | 4.79 |
| 2018-03-31 | 4.67 |
| 2017-12-31 | 4.31 |
| 2017-09-30 | 3.90 |
| 2017-06-30 | 3.71 |
| 2017-03-31 | 3.47 |
| 2016-12-31 | 3.22 |
| 2016-09-30 | 3.02 |
| 2016-06-30 | 3.11 |
*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.
- Unable to establish if Grand Canyon Education will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Grand Canyon Education's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Grand Canyon Education has a total score of 2/6, 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.
Past Performance
How has Grand Canyon 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
Past Earnings growth analysis
- Grand Canyon Education's year on year earnings growth rate has been positive over the past 5 years.
- Grand Canyon Education's 1-year earnings growth is less than its 5-year average (3.4% vs 18.6%)
- Grand Canyon Education's earnings growth has not exceeded the US Consumer Services industry average in the past year (3.4% vs 6.5%).
Earnings and Revenue History
All data from Grand Canyon Education Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 767.11 | 228.57 | 158.39 | |
| 2018-12-31 | 845.50 | 229.01 | 147.39 | |
| 2018-09-30 | 939.37 | 221.74 | 151.63 | |
| 2018-06-30 | 1,020.13 | 227.28 | 139.90 | |
| 2018-03-31 | 1,001.61 | 221.09 | 135.16 | |
| 2017-12-31 | 974.13 | 203.32 | 136.25 | |
| 2017-09-30 | 947.38 | 183.04 | 137.69 | |
| 2017-06-30 | 921.61 | 172.98 | 147.23 | |
| 2017-03-31 | 894.59 | 160.76 | 143.19 | |
| 2016-12-31 | 873.34 | 148.51 | 126.67 | |
| 2016-09-30 | 844.64 | 138.65 | 137.62 | |
| 2016-06-30 | 827.58 | 142.75 | 131.89 | |
| 2016-03-31 | 811.03 | 140.90 | 128.56 | |
| 2015-12-31 | 778.20 | 131.41 | 125.62 | |
| 2015-09-30 | 752.22 | 126.39 | 123.70 | |
| 2015-06-30 | 733.88 | 122.06 | 120.04 | |
| 2015-03-31 | 717.75 | 119.36 | 116.95 | |
| 2014-12-31 | 691.06 | 111.47 | 112.88 | |
| 2014-09-30 | 663.53 | 104.53 | 111.21 | |
| 2014-06-30 | 640.87 | 98.06 | 106.98 | |
| 2014-03-31 | 623.74 | 94.05 | 105.21 | |
| 2013-12-31 | 598.34 | 88.71 | 103.56 | |
| 2013-09-30 | 577.19 | 83.46 | 102.15 | |
| 2013-06-30 | 558.36 | 79.39 | 98.98 | |
| 2013-03-31 | 536.16 | 75.92 | 94.19 | |
| 2012-12-31 | 511.26 | 69.45 | 90.89 | |
| 2012-09-30 | 482.96 | 63.86 | 104.06 |
*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.
- Grand Canyon Education has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Grand Canyon Education used its assets more efficiently than the US Consumer Services industry average last year based on Return on Assets.
- Grand Canyon Education's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Grand Canyon 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 Consumer Services 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)
Grand Canyon Education 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.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Grand Canyon 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 Grand Canyon Education's finances.
The net worth of a company is the difference between its assets and liabilities.
- Grand Canyon Education is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Grand Canyon Education's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is not covered by short term assets, assets are 0.8x 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.
All data from Grand Canyon Education Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 1,272.87 | 248.42 | 102.71 |
| 2018-12-31 | 1,213.60 | 59.91 | 189.35 |
| 2018-09-30 | 1,138.36 | 61.55 | 113.63 |
| 2018-06-30 | 1,100.30 | 63.19 | 298.15 |
| 2018-03-31 | 1,051.01 | 64.94 | 334.76 |
| 2017-12-31 | 985.95 | 66.62 | 242.75 |
| 2017-09-30 | 915.72 | 68.28 | 269.75 |
| 2017-06-30 | 872.21 | 69.94 | 155.70 |
| 2017-03-31 | 826.52 | 71.59 | 170.10 |
| 2016-12-31 | 773.69 | 98.25 | 108.57 |
| 2016-09-30 | 716.79 | 86.91 | 124.80 |
| 2016-06-30 | 680.28 | 101.57 | 93.99 |
| 2016-03-31 | 644.21 | 78.22 | 132.92 |
| 2015-12-31 | 610.25 | 79.88 | 106.40 |
| 2015-09-30 | 579.64 | 82.48 | 162.19 |
| 2015-06-30 | 543.33 | 83.19 | 134.24 |
| 2015-03-31 | 513.19 | 84.84 | 187.17 |
| 2014-12-31 | 476.23 | 86.49 | 166.02 |
| 2014-09-30 | 439.49 | 88.15 | 183.61 |
| 2014-06-30 | 407.29 | 89.80 | 176.71 |
| 2014-03-31 | 380.90 | 91.49 | 196.60 |
| 2013-12-31 | 344.84 | 93.21 | 164.24 |
| 2013-09-30 | 314.32 | 94.92 | 170.31 |
| 2013-06-30 | 288.55 | 96.66 | 139.24 |
| 2013-03-31 | 258.46 | 98.37 | 151.54 |
| 2012-12-31 | 234.06 | 100.09 | 105.11 |
| 2012-09-30 | 217.23 | 20.91 | 69.64 |
- Grand Canyon Education's level of debt (19.5%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (24.1% vs 19.5% today).
- Debt is well covered by operating cash flow (63%, greater than 20% of total debt).
- Grand Canyon Education earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Grand Canyon Education's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Grand Canyon Education has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
Dividends
What is Grand Canyon 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
If you bought
$2,000 of
Grand Canyon Education
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Grand Canyon Education's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Grand Canyon 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.
| 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 4 Analyst Estimates (S&P Global) | See Below |
| United States of America Consumer Services Industry Average Dividend Yield | Market Cap Weighted Average of 7 Stocks | 1.9% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2017 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 | 3.8% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | ||
| 2020-12-31 | ||
| 2019-12-31 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Grand Canyon Education has not reported any payouts.
- Unable to verify if Grand Canyon Education's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Grand Canyon Education's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Grand Canyon Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Grand Canyon 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.
Management
CEO
| COMPENSATION | $2,361,195 |
| AGE | 65 |
| TENURE AS CEO | 11 years |
CEO Bio
Mr. Brian E. Mueller has been the Chief Executive Officer of Grand Canyon Education, Inc. since July 1, 2008 and also serves as its President. Mr. Mueller serves as Chairman, President, Chief Executive Officer, and Member of Board of Trustees of Grand Canyon University. He served as the President of Apollo Education Group, Inc. (formerly Apollo Group Inc.), parent of University Of Phoenix from January 2006 to June 24, 2008 and also served as its Principal Executive Officer until June 24, 2008. He served as the Chief Operating Officer of Apollo Group Inc., from December 1, 2005 to January 2006. He has spent 19 years with Apollo. He served as the Chief Operating Officer and Senior Vice President of University of Phoenix's online campus from May 1997 to March 2002 and also its Chief Executive Officer from March 2002 to December 1, 2005. He served as Vice President /Campus Director at University of Phoenix, San Diego, from 1995 to 1997. He served as Vice President/Director of the New Mexico Campus from 1993 to 1995 and Director of Enrollment for the University of Phoenix, Phoenix Campus from 1990 to 1993. Prior to that, he served as an Enrollment Advisor of the Phoenix Campus. He had been with University of Phoenix since 1987. He has been Chairman of Grand Canyon Education, Inc. since January 18, 2017. He has been a Director at Grand Canyon Education, Inc. since March 2009. He serves as a Director of The Arizona Commerce Authority. He served as an Executive Director of Apollo Education Group, Inc. since March 29, 2006 and also served as its Director until June 24, 2008. From 1983 to 1987, he was a Professor for Concordia University. He received his Master of Arts in Education degree and Bachelor of Arts degree in Education from Concordia University.
CEO Compensation
- Brian's compensation has been consistent with company performance over the past year, both up more than 20%.
- Brian's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Grand Canyon Education management team in years:
- The average tenure for the Grand Canyon Education management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Brian Mueller
CEO, President & Chairman
$2M
65
11 yrs
Dan Bachus
Chief Financial Officer
$1M
49
11 yrs
W. Meyer
Chief Operating Officer
$1M
58
7 yrs
Joe Mildenhall
Chief Information Officer
$1M
65
9.8 yrs
Dilek Marsh
Chief Data Officer
$640K
45
1 yrs
Vince Grell
Executive Vice President of University Partnerships
0.8 yrs
Board of Directors Tenure
Average tenure and age of the Grand Canyon Education board of directors in years:
- The tenure for the Grand Canyon Education board of directors is about average.
Board of Directors
Brian Mueller
CEO, President & Chairman
$2M
65
2.5 yrs
Jack Henry
Independent Director
$150K
75
10.7 yrs
Kevin Warren
Independent Director
$150K
55
6.8 yrs
Sara Dial
Lead Independent Director
$178K
55
2.5 yrs
David Johnson
Independent Director
$135K
72
10.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Mar 19 | Sell | Joseph Mildenhall | Individual | 04. Mar 19 | 04. Mar 19 | -5,000 | $118.44 | $-592,200 | ||
| 14. Nov 18 | Sell | Dilek Marsh | Individual | 13. Nov 18 | 13. Nov 18 | -4,000 | $126.00 | $-504,000 | ||
Management checks
We assess Grand Canyon Education's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Grand Canyon 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.
News
Simply Wall St News
Why We Like Grand Canyon Education, Inc.’s (NASDAQ:LOPE) 18% Return On Capital Employed
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Grand Canyon Education: 0.18 = US$262m ÷ (US$1.6b - US$126m) (Based on the trailing twelve months to March 2019.) So, Grand Canyon Education has an ROCE of 18%. … What Are Current Liabilities, And How Do They Affect Grand Canyon Education's ROCE? … In addition to low current liabilities (making a negligible impact on ROCE), Grand Canyon Education earns a sound return on capital employed.
Simply Wall St - – Full articleIs Grand Canyon Education, Inc.'s (NASDAQ:LOPE) ROE Of 18% Impressive?
The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Grand Canyon Education: 18% = US$229m ÷ US$1.3b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Grand Canyon Education Have A Good Return On Equity? … Grand Canyon Education's Debt And Its 18% ROE Grand Canyon Education has a debt to equity ratio of 0.20, which is far from excessive.
Simply Wall St - – Full articleShould You Worry About Grand Canyon Education, Inc.'s (NASDAQ:LOPE) CEO Pay Cheque?
In 2008 Brian Mueller was appointed CEO of Grand Canyon Education, Inc. … See our latest analysis for Grand Canyon Education How Does Brian Mueller's Compensation Compare With Similar Sized Companies? … Most shareholders would consider it a positive that Brian Mueller takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders.
Simply Wall St - – Full articleHow Much Did Grand Canyon Education, Inc.'s (NASDAQ:LOPE) CEO Pocket Last Year?
View our latest analysis for Grand Canyon Education How Does Brian Mueller's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Grand Canyon Education has changed from year to year. … Boasting a total shareholder return of 213% over three years, Grand Canyon Education, Inc.
Simply Wall St - – Full articleDid Business Growth Power Grand Canyon Education's (NASDAQ:LOPE) Share Price Gain of 198%?
Check out our latest analysis for Grand Canyon Education To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … During three years of share price growth, Grand Canyon Education achieved compound earnings per share growth of 16% per year. … Before spending more time on Grand Canyon Education it might be wise to click here to see if insiders have been buying or selling shares.
Simply Wall St - – Full articleWhy Grand Canyon Education, Inc. (NASDAQ:LOPE) Is A Financially Healthy Company
This article will examine LOPE’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Additionally, LOPE has produced US$156m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 60%, meaning that LOPE’s debt is appropriately covered by operating cash. … At the current liabilities level of US$126m, it appears that the company has been able to meet these obligations given the level of current assets of US$198m, with a current ratio of 1.57x.
Simply Wall St - – Full articleEstimating The Fair Value Of Grand Canyon Education, Inc. (NASDAQ:LOPE)
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $245.50 $268.30 $287.13 $303.59 $318.26 $331.63 $344.10 $355.97 $367.48 $378.81 Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 7.02% Est @ 5.73% Est @ 4.83% Est @ 4.2% Est @ 3.76% Est @ 3.45% Est @ 3.23% Est @ 3.08% Present Value ($, Millions) Discounted @ 8.65% $225.94 $227.26 $223.84 $217.82 $210.15 $201.54 $192.46 $183.24 $174.10 $165.17 Present Value of 10-year Cash Flow (PVCF)= $2.02b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$379m × (1 + 2.7%) ÷ (8.7% – 2.7%) = US$6.6b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$6.6b ÷ ( 1 + 8.7%)10 = $2.86b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $4.89b. … NasdaqGS:LOPE Intrinsic value, May 23rd 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
Simply Wall St - – Full articleIf You Like EPS Growth Then Check Out Grand Canyon Education (NASDAQ:LOPE) Before It's Too Late
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Grand Canyon Education (NASDAQ:LOPE). … How Fast Is Grand Canyon Education Growing. … Unfortunately, Grand Canyon Education's revenue dropped 13% last year, but the silver lining is that EBIT margins improved from 29% to 33%.
Simply Wall St - – Full articleGrand Canyon Education, Inc.'s (NASDAQ:LOPE) Earnings Grew 13%, Did It Beat Long-Term Trend?
In this article, I will take a look at Grand Canyon Education, Inc.'s (NASDAQ:LOPE) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, along with how the rest of LOPE's industry performed. … Commentary On LOPE's Past Performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 19%, indicating the rate at which LOPE is growing has slowed down
Simply Wall St - – Full articleHave Insiders Been Selling Grand Canyon Education, Inc. (NASDAQ:LOPE) Shares This Year?
So shareholders might well want to know whether insiders have been buying or selling shares in Grand Canyon Education, Inc. … Grand Canyon Education Insider Transactions Over The Last Year. … Grand Canyon Education insiders didn't buy any shares over the last year
Simply Wall St - – Full articleCompany Info
Description
Grand Canyon Education, Inc. provides education services in the United States. It offers technology and academic, counseling and support, and marketing and communication services, as well as back office services, such as financial aid processing, accounting, reporting, tax, human resources, and procurement services to the Grand Canyon University. The company, through its subsidiary Orbis Education Services, LLC, provides support services for healthcare education programs in 17 universities. Grand Canyon Education, Inc. was founded in 1949 and is headquartered in Phoenix, Arizona.
Details
| Name: | Grand Canyon Education, Inc. |
| LOPE | |
| Exchange: | NasdaqGS |
| Founded: | 1949 |
| $6,047,948,681 | |
| 47,821,212 | |
| Website: | http://www.gce.com |
| Address: |
Grand Canyon Education, Inc. 2600 West Camelback Road, Phoenix, Arizona, 85017, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | LOPE | Common Stock | Nasdaq Global Select | US | USD | 20. Nov 2008 | |
| DB | GKD | Common Stock | Deutsche Boerse AG | DE | EUR | 20. Nov 2008 |
Number of employees
Current staff
Industry
| Education Services | |
| Consumer Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/07/22 02:50 |
| End of day share price update: | 2019/07/19 00:00 |
| Last estimates confirmation: | 2019/07/15 |
| Last earnings filing: | 2019/05/07 |
| Last earnings reported: | 2019/03/31 |
| 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.
