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PRDO

Perdoceo EducationNasdaqGS:PRDO Stock Report

Market Cap

US$727.0m

7D

1.3%

1Y

-15.6%

Updated

03 Dec, 2021

Data

Company Financials +
PRDO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends0/6

PRDO Stock Overview

Perdoceo Education Corporation provides postsecondary education to student through online, campus based, and blended learning programs in the United States.

Perdoceo Education Competitors

Chegg

NYSE:CHGG

US$4.1b

Graham Holdings

NYSE:GHC

US$2.8b

Grand Canyon Education

NasdaqGS:LOPE

US$2.8b

Houghton Mifflin Harcourt

NasdaqGS:HMHC

US$2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Perdoceo Education
Historical stock prices
Current Share PriceUS$10.37
52 Week HighUS$14.05
52 Week LowUS$9.65
Beta1.17
1 Month Change-4.60%
3 Month Change-4.51%
1 Year Change-15.62%
3 Year Change-19.30%
5 Year Change1.07%
Change since IPO330.96%

Recent News & Updates

Dec 03

Perdoceo Education: The Fears Are Overblown

Fears of an apocalyptic event due to Democratic leadership destroying for-profit universities is likely overblown, creating a buying opportunity for companies like Perdoceo Education. Perdoceo Education is diversifying its revenue streams, insulating against a perceived attack by a Democrat President and Congress on its primary business line. The company is certainly undervalued, but that doesn’t necessarily mean it’s a long-term hold as headwinds will still likely deteriorate revenues, profitability, or both.

Nov 02

Perdoceo: Head I Win, Tails I Don't Lose Much

PRDO is one of the cheapest stocks around, with more than half of the total market cap in net cash. This company is constantly getting ridiculous multiples, with an EV/FCF (2021E) of just 2.5, and an FCF conversion rate higher than 20%. The market is betting on democrats banning private colleges or favoring free public colleges, but so far the reward highly compensates for the risks. At the current price, Perdoceo could return as much as 60% in the next few months.

Sep 01

Perdoceo Education: 2 Sides Of A Very Puzzling Coin

On one side of the coin - Perdoceo could have 80% upside based on conservative earnings projections. But on the other side - there's a chance for 50% downside if this company is forced to close its doors. For these reasons, I'm neutral.

Shareholder Returns

PRDOUS Consumer ServicesUS Market
7D1.3%-5.4%-2.7%
1Y-15.6%-63.5%16.6%

Return vs Industry: PRDO exceeded the US Consumer Services industry which returned -62.8% over the past year.

Return vs Market: PRDO underperformed the US Market which returned 19.4% over the past year.

Price Volatility

Is PRDO's price volatile compared to industry and market?
PRDO volatility
PRDO Average Weekly Movement4.2%
Consumer Services Industry Average Movement8.3%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: PRDO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PRDO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,625Todd Nelsonhttps://www.perdoceoed.com

Perdoceo Education Corporation provides postsecondary education to student through online, campus based, and blended learning programs in the United States. It operates through two segments, Colorado Technical University and American InterContinental University. The company offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, criminal justice, education, and health sciences.

Perdoceo Education Fundamentals Summary

How do Perdoceo Education's earnings and revenue compare to its market cap?
PRDO fundamental statistics
Market CapUS$726.99m
Earnings (TTM)US$112.26m
Revenue (TTM)US$704.33m

6.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRDO income statement (TTM)
RevenueUS$704.33m
Cost of RevenueUS$92.85m
Gross ProfitUS$611.49m
ExpensesUS$499.23m
EarningsUS$112.26m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.60
Gross Margin86.82%
Net Profit Margin15.94%
Debt/Equity Ratio0%

How did PRDO perform over the long term?

See historical performance and comparison

Valuation

Is Perdoceo 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: PRDO ($10.37) is trading below our estimate of fair value ($107.8)

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


Price To Earnings Ratio

PE vs Industry: PRDO is good value based on its PE Ratio (6.5x) compared to the US Consumer Services industry average (18.3x).

PE vs Market: PRDO is good value based on its PE Ratio (6.5x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: PRDO is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: PRDO is good value based on its PB Ratio (1.1x) compared to the US Consumer Services industry average (1.9x).


Future Growth

How is Perdoceo Education forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRDO's forecast earnings growth (1.3% per year) is below the savings rate (2%).

Earnings vs Market: PRDO's earnings (1.3% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: PRDO's revenue (2.2% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PRDO's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PRDO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Perdoceo Education performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRDO has high quality earnings.

Growing Profit Margin: PRDO's current net profit margins (15.9%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: PRDO's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: PRDO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PRDO had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Consumer Services industry average (-1%).


Return on Equity

High ROE: PRDO's Return on Equity (17.4%) is considered low.


Financial Health

How is Perdoceo Education's financial position?


Financial Position Analysis

Short Term Liabilities: PRDO's short term assets ($537.1M) exceed its short term liabilities ($134.4M).

Long Term Liabilities: PRDO's short term assets ($537.1M) exceed its long term liabilities ($56.6M).


Debt to Equity History and Analysis

Debt Level: PRDO is debt free.

Reducing Debt: PRDO had no debt 5 years ago.

Debt Coverage: PRDO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PRDO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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

6.3yrs

Average management tenure


CEO

Todd Nelson (62 yo)

6.33yrs

Tenure

US$4,870,453

Compensation

Mr. Todd S. Nelson has been the Chief Executive Officer and President of Perdoceo Education Corporation (formerly known as Career Education Corporation) since August 12, 2015. He worked as an independent c...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD4.87M) is above average for companies of similar size in the US market ($USD2.36M).

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


Leadership Team

Experienced Management: PRDO's management team is seasoned and experienced (6.3 years average tenure).


Board Members

Experienced Board: PRDO's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PRDO insiders have only sold shares 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

Perdoceo Education Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Perdoceo Education Corporation
  • Ticker: PRDO
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$726.994m
  • Shares outstanding: 70.11m
  • Website: https://www.perdoceoed.com

Number of Employees


Location

  • Perdoceo Education Corporation
  • 231 North Martingale Road
  • Schaumburg
  • Illinois
  • 60173
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:57
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.