Perdoceo Education Corporation
Perdoceo Education Corporation Fundamental Analysis
Perdoceo Education Corporation (PRDO) shows strong financial fundamentals with a PE ratio of 12.55, profit margin of 19.91%, and ROE of 17.21%. The company generates $0.9B in annual revenue with strong year-over-year growth of 24.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PRDO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPRDO demonstrates superior asset utilization.
Valuation Score
ExcellentPRDO trades at attractive valuation levels.
Growth Score
ModeratePRDO shows steady but slowing expansion.
Financial Health Score
ExcellentPRDO maintains a strong and stable balance sheet.
Profitability Score
ExcellentPRDO achieves industry-leading margins.
Key Financial Metrics
Is PRDO Expensive or Cheap?
P/E Ratio
PRDO trades at 12.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PRDO's PEG of 0.83 indicates potential undervaluation.
Price to Book
The market values Perdoceo Education Corporation at 2.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.01 times EBITDA. This signals the market has high growth expectations.
How Well Does PRDO Make Money?
Net Profit Margin
For every $100 in sales, Perdoceo Education Corporation keeps $19.91 as profit after all expenses.
Operating Margin
Core operations generate 24.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.21 in profit for every $100 of shareholder equity.
ROA
Perdoceo Education Corporation generates $13.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Perdoceo Education Corporation generates strong operating cash flow of $230.26M, reflecting robust business health.
Free Cash Flow
Perdoceo Education Corporation generates strong free cash flow of $221.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.53 in free cash annually.
FCF Yield
PRDO converts 10.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PRDO Stacks Against Its Sector Peers
| Metric | PRDO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.55 | 21.04 | Better (Cheaper) |
| ROE | 17.21% | 1170.00% | Weak |
| Net Margin | 19.91% | -2432.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 4.82 | 2.51 | Strong Liquidity |
| ROA | 13.20% | -196096.00% (disorted) | Strong |
PRDO outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Perdoceo Education Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.86%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
37.84%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
34.07%
Industry Style: Defensive, Dividend, Low Volatility
High Growth