Grand Canyon Education
Market Cap
US$3.4b
Last Updated
2020/04/03 07:39 UTC
Data Sources
Company Financials +
Executive Summary
Grand Canyon Education, Inc. provides education services to colleges and universities in the United States.
Rewards
Risk Analysis
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
| LOPE | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | -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 Year | 0.5%0.5% | 54.1%47.3% | 10.7%3.5% |
| 5 Year | 65.6%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
2 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Grand Canyon Education, Inc.'s (NASDAQ:LOPE) P/E Ratio3 weeks ago | Simply Wall St
Did Grand Canyon Education's (NASDAQ:LOPE) Share Price Deserve to Gain 85%?1 month ago | Simply Wall St
Chief Financial Officer Daniel Bachus Just Bought Shares In Grand Canyon Education, Inc. (NASDAQ:LOPE)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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Chairman | 11.75yrs | US$2.36m | 0.60% $20.5m | |
| Chief Financial Officer | 11.75yrs | US$1.43m | 0.23% $7.7m | |
| Chief Operating Officer | 7.75yrs | US$1.45m | 0.21% $7.2m | |
| Chief Information Officer | 10.58yrs | US$1.23m | 0.11% $3.8m | |
| Chief Data Officer | 1.75yrs | US$639.50k | 0.058% $2.0m | |
| Senior VP | 0.67yr | no data | 0.031% $1.1m | |
| Executive Vice President of University Partnerships | 1.58yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Chairman | 11.75yrs | US$2.36m | 0.60% $20.5m | |
| Independent Director | 11.42yrs | US$135.00k | 0.032% $1.1m | |
| Independent Director | 11.42yrs | US$150.00k | 0.037% $1.3m | |
| Lead Independent Director | 3.25yrs | US$178.33k | 0.021% $726.4k | |
| Independent Director | 0.67yr | no data | 0.00033% $11.3k | |
| Independent Director | 0.67yr | no data | 0.00054% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LOPE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 2008 |
| GKD | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 07:39 |
| End of Day Share Price | 2020/04/02 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.