Laureate Education, Inc.
Laureate Education, Inc. Fundamental Analysis
Laureate Education, Inc. (LAUR) shows moderate financial fundamentals with a PE ratio of 17.41, profit margin of 16.55%, and ROE of 26.41%. The company generates $1.7B in annual revenue with moderate year-over-year growth of 5.55%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LAUR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLAUR demonstrates superior asset utilization.
Valuation Score
ExcellentLAUR trades at attractive valuation levels.
Growth Score
ModerateLAUR shows steady but slowing expansion.
Financial Health Score
ModerateLAUR shows balanced financial health with some risks.
Profitability Score
ExcellentLAUR achieves industry-leading margins.
Key Financial Metrics
Is LAUR Expensive or Cheap?
P/E Ratio
LAUR trades at 17.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LAUR's PEG of -0.38 indicates potential undervaluation.
Price to Book
The market values Laureate Education, Inc. at 4.13 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.97 times EBITDA. This is generally considered low.
How Well Does LAUR Make Money?
Net Profit Margin
For every $100 in sales, Laureate Education, Inc. keeps $16.55 as profit after all expenses.
Operating Margin
Core operations generate 25.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.41 in profit for every $100 of shareholder equity.
ROA
Laureate Education, Inc. generates $12.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Laureate Education, Inc. produces operating cash flow of $365.71M, showing steady but balanced cash generation.
Free Cash Flow
Laureate Education, Inc. generates strong free cash flow of $262.80M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.78 in free cash annually.
FCF Yield
LAUR converts 5.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.25
vs 25 benchmark
How LAUR Stacks Against Its Sector Peers
| Metric | LAUR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.41 | 23.25 | Better (Cheaper) |
| ROE | 26.41% | 1240.00% | Weak |
| Net Margin | 16.55% | -9728.00% (disorted) | Strong |
| Debt/Equity | 0.15 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 0.60 | 2.54 | Weak Liquidity |
| ROA | 12.77% | -203388.00% (disorted) | Strong |
LAUR outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Laureate Education, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-30.21%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
3033.38%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-0.92%
Industry Style: Defensive, Dividend, Low Volatility
Declining