NasdaqGS:LOPE

Stock Analysis Report

Executive Summary

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LOPE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.4%

LOPE

-6.6%

US Consumer Services

-4.1%

US Market


1 Year Return

-39.6%

LOPE

-6.3%

US Consumer Services

-14.9%

US Market

Return vs Industry: LOPE underperformed the US Consumer Services industry which returned -6.3% over the past year.

Return vs Market: LOPE underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

LOPEIndustryMarket
7 Day0.4%-6.6%-4.1%
30 Day-13.8%-19.9%-19.1%
90 Day-26.4%-13.5%-23.4%
1 Year-39.6%-39.6%-6.0%-6.3%-13.2%-14.9%
3 Year0.5%0.5%54.1%47.3%10.7%3.5%
5 Year65.6%65.6%115.3%90.8%28.5%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Grand Canyon 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: LOPE ($71.5) is trading below our estimate of fair value ($160.51)

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


Price To Earnings Ratio

PE vs Industry: LOPE is good value based on its PE Ratio (13.2x) compared to the Consumer Services industry average (25.2x).

PE vs Market: LOPE is poor value based on its PE Ratio (13.2x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: LOPE is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: LOPE is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Services industry average (1.7x).


Next Steps

Future Growth

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

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOPE's forecast earnings growth (6.4% per year) is above the savings rate (1.7%).

Earnings vs Market: LOPE's earnings (6.4% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: LOPE's earnings are forecast to grow, but not significantly.

Revenue vs Market: LOPE's revenue (9.5% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: LOPE's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOPE's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Grand Canyon Education performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOPE has high quality earnings.

Growing Profit Margin: LOPE's current net profit margins (33.3%) are higher than last year (27.1%).


Past Earnings Growth Analysis

Earnings Trend: LOPE's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: LOPE's earnings growth over the past year (13.2%) is below its 5-year average (17.4% per year).

Earnings vs Industry: LOPE earnings growth over the past year (13.2%) underperformed the Consumer Services industry 17.6%.


Return on Equity

High ROE: LOPE's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is Grand Canyon Education's financial position?


Financial Position Analysis

Short Term Liabilities: LOPE's short term assets ($208.3M) exceed its short term liabilities ($95.2M).

Long Term Liabilities: LOPE's short term assets ($208.3M) exceed its long term liabilities ($151.6M).


Debt to Equity History and Analysis

Debt Level: LOPE's debt to equity ratio (9.8%) is considered satisfactory.

Reducing Debt: LOPE's debt to equity ratio has reduced from 18.1% to 9.8% over the past 5 years.

Debt Coverage: LOPE's debt is well covered by operating cash flow (217.4%).

Interest Coverage: LOPE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LOPE has a low level of unsold assets or inventory.

Debt Coverage by Assets: LOPE's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate LOPE'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 LOPE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LOPE'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 LOPE'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?

7.8yrs

Average management tenure


CEO

Brian Mueller (65yo)

11.75s

Tenure

US$2,361,195

Compensation

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 Off ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD2.36M) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Mueller
CEO, President & Chairman11.75yrsUS$2.36m0.60% $20.5m
Daniel Bachus
Chief Financial Officer11.75yrsUS$1.43m0.23% $7.7m
W. Meyer
Chief Operating Officer7.75yrsUS$1.45m0.21% $7.2m
Joseph Mildenhall
Chief Information Officer10.58yrsUS$1.23m0.11% $3.8m
Dilek Marsh
Chief Data Officer1.75yrsUS$639.50k0.058% $2.0m
Lori Browning
Senior VP0.67yrno data0.031% $1.1m
Vince Grell
Executive Vice President of University Partnerships1.58yrsno datano data

7.8yrs

Average Tenure

58yo

Average Age

Experienced Management: LOPE's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Mueller
CEO, President & Chairman11.75yrsUS$2.36m0.60% $20.5m
David Johnson
Independent Director11.42yrsUS$135.00k0.032% $1.1m
Jack Henry
Independent Director11.42yrsUS$150.00k0.037% $1.3m
Sara Dial
Lead Independent Director3.25yrsUS$178.33k0.021% $726.4k
Chevy Humphrey
Independent Director0.67yrno data0.00033% $11.3k
Lisa Keegan
Independent Director0.67yrno data0.00054% $18.4k

3.3yrs

Average Tenure

68.5yo

Average Age

Experienced Board: LOPE's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LOPE 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

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


Key Information

  • Name: Grand Canyon Education, Inc.
  • Ticker: LOPE
  • Exchange: NasdaqGS
  • Founded: 1949
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$3.414b
  • Shares outstanding: 47.74m
  • Website: https://www.gce.com

Number of Employees


Location

  • Grand Canyon Education, Inc.
  • 2600 West Camelback Road
  • Phoenix
  • Arizona
  • 85017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOPENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2008
GKDDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2008

Biography

Grand Canyon Education, Inc. provides education services to colleges and universities in the United States. The company’s technology services include learning management system, internal administration, infrastructure, and support services; academic services comprises program and curriculum, faculty and related training and development, class scheduling, and skills and simulation lab sites; and counseling services and support include admission, financial aid, and field experience counseling services. It also offers marketing and communication services, such as lead acquisition, digital communications strategy, brand identity, media planning and strategy, video, and data science and analysis services; and back office services comprising finance and accounting, human resources, audit, procurement services. The company, through its subsidiary, Orbis Education Services, LLC, supports healthcare education programs for 22 universities. Grand Canyon Education, Inc. was founded in 1949 and is based in Phoenix, Arizona. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 07:39
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.