How Profit Growth and Insider Stakes at Perdoceo Education (PRDO) Are Redefining Its Investment Story

• Perdoceo Education recently reported a 14% annual earnings per share growth over three years, with revenue rising 16% to US$769 million and insiders holding a US$138 million stake, reinforcing operational gains and alignment with shareholders.
• While these results highlight profit momentum and strong insider commitment, some analysts also pointed out concerns about eroding returns on capital, creating divided sentiment among market participants.
• We'll explore how the combination of robust profit growth and worries over capital returns could shape Perdoceo Education's investment narrative now.

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Perdoceo Education Investment Narrative Recap

To be a shareholder in Perdoceo Education, you need to believe in the enduring appeal of online career-focused education and the company's ability to balance acquisition-driven revenue with healthy long-term returns on capital. The recent report of 14% EPS growth and strong insider stakes reinforces confidence but does not appear to materially resolve the key short-term catalyst: consistent enrollment expansion, or the biggest current risk, potential pressure on returns due to higher student acquisition costs and competition.

One recent announcement that stands out is the company’s latest quarterly dividend increase to US$0.15 per share, effective September 2025. This move, amid growing revenue, signals management’s confidence in cash flow and its commitment to rewarding shareholders, remaining highly relevant as enrollment and profitability trends are watched closely by the market.

However, despite these positives, investors should be aware that growing revenue through acquisitions, like St. Augustine, may introduce...

Read the full narrative on Perdoceo Education (it's free!)

Perdoceo Education's narrative projects $987.8 million revenue and $179.9 million earnings by 2028. This requires 8.7% yearly revenue growth and a $25.5 million earnings increase from $154.4 million today.

Uncover how Perdoceo Education's forecasts yield a $40.00 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community estimated fair value for Perdoceo Education, ranging from US$22.97 to US$102.25 per share. While many anticipate continued revenue growth from recent campus acquisitions, these diverging opinions highlight how much investors weigh the risks around future integration and enrollment performance.

Explore 5 other fair value estimates on Perdoceo Education - why the stock might be worth over 3x more than the current price!

Build Your Own Perdoceo Education Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perdoceo Education research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Perdoceo Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perdoceo Education's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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