American Public Education (APEI) AI Stock Analysis

• Market Cap: $570.92M
• Dividend Yield: N/A
• Average Volume (3M): 251.22K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.96
• Revenue Growth: 5.50%
• EPS Growth: 338.59%
• Country: US
• Employees: 2,493
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Education & Training Services
• EPS (TTM): 0.10
• Shares Outstanding: 18,067,135
• 10 Day Avg. Volume: 251,572
• 30 Day Avg. Volume: 251,219
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 1.70
• Enterprise Value/Ebitda: 9.17
• 1Y Price Target: $35.67
• Price Target Upside: 12.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $35.00 ▲(10.76% Upside)

APEI's overall stock score reflects strong earnings call performance and positive technical indicators, which are slightly offset by a high valuation and moderate financial performance. The company's strategic initiatives and enrollment growth contribute positively to its outlook.

Positive Factors

Financial Performance

American Public Education's second-quarter results topped expectations, with revenues increasing 6.5% to $162.8 million, and adjusted EBITDA rising 38.2% to $15.1 million, surpassing estimates.

Investment Rating

Analysts have reiterated the OUTPERFORM investment rating for American Public Education and raised the 12-month price target to $36, representing approximately 21% upside from current levels.

Market Valuation

Shares of American Public Education are trading at a significant discount compared to its for-profit postsecondary peer group, with potential for continued enrollment growth and margin expansion.

Negative Factors

Earnings Guidance

American Public Education's full-year earnings guidance for diluted EPS is below its prior guidance, considering losses on preferred equity redemption and the sale of Graduate School.

American Public Education Business Overview & Revenue Model

Company Description

American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education. The company operates through three segments: American Public University System, Rasmussen University, and Hondros College of Nursing. It offers 130 degree programs and 111 certificate programs in various fields of study, including business administration, health science, technology, criminal justice, education, and liberal arts, as well as national security, military studies, intelligence, and homeland security. The company also provides nursing-and health sciences-focused postsecondary education, diploma in practical nursing, an associate degree in nursing, and an associate degree in medical laboratory technology. American Public Education, Inc. was incorporated in 1991 and is headquartered in Charles Town, West Virginia.

How the Company Makes Money

APEI generates revenue primarily through tuition and fees paid by students enrolled in its degree programs and courses. The company benefits from a significant number of military and veteran students, who often utilize federal financial aid programs such as the GI Bill. Additionally, APEI has established partnerships with various military organizations and employers, which can enhance enrollment and retention rates. The company's revenue model is also supported by an emphasis on online education, allowing for lower operational costs compared to traditional brick-and-mortar institutions, thus contributing to its profitability.

American Public Education Financial Statement Overview

Summary

American Public Education demonstrates a solid financial position with positive growth trends in revenue and cash flow. The company has improved its profitability and operational efficiency, but there is still potential to enhance net profit margins. The balance sheet is stable, with manageable leverage and a strong equity base. Continued focus on cost management and cash flow optimization will be key to sustaining financial health.

Income Statement

American Public Education shows a moderate performance in its income statement. The company has achieved a positive revenue growth rate of 1.56% in the TTM, indicating a recovery from previous declines. Gross profit margin remains strong at approximately 52%, but net profit margin is relatively low at 4.44%, suggesting room for improvement in cost management. EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The balance sheet of American Public Education is stable with a debt-to-equity ratio of 0.72, indicating a manageable level of leverage. Return on equity has improved to 9.73% in the TTM, showing enhanced profitability for shareholders. The equity ratio is healthy, suggesting a solid capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Cash flow analysis reveals a positive trend with an 8.32% growth in free cash flow in the TTM. The operating cash flow to net income ratio is strong at 0.81, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is also robust at 0.74, reflecting good cash conversion. Continued focus on cash flow management will be crucial for sustaining growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	644.55M	624.56M	600.54M	606.33M	418.80M	321.79M
Gross Profit	334.95M	328.86M	307.68M	317.86M	246.18M	199.62M
EBITDA	61.96M	52.37M	-20.49M	-101.39M	50.77M	38.59M
Net Income	28.61M	16.11M	-47.29M	-114.97M	17.75M	18.82M
Balance Sheet
Total Assets	537.37M	570.10M	557.39M	615.06M	725.61M	371.02M
Cash, Cash Equivalents and Short-Term Investments	176.58M	158.94M	116.66M	102.56M	122.63M	227.69M
Total Debt	195.67M	200.62M	204.73M	208.97M	243.71M	8.85M
Total Liabilities	265.13M	266.22M	265.41M	265.33M	310.00M	64.09M
Stockholders Equity	272.24M	303.88M	291.98M	349.73M	415.61M	306.93M
Cash Flow
Free Cash Flow	50.22M	27.79M	31.62M	12.83M	4.44M	39.88M
Operating Cash Flow	67.48M	48.87M	45.51M	29.21M	16.27M	44.81M
Investing Cash Flow	5.68M	-21.08M	-13.77M	-13.67M	-336.67M	-4.16M
Financing Cash Flow	-52.78M	-13.19M	-16.86M	-35.71M	242.34M	-15.71M

American Public Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APEI, the sentiment is Positive. The current price of 31.6 is above the 20-day moving average (MA) of 30.15, above the 50-day MA of 30.13, and above the 200-day MA of 25.03, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 89.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APEI.

American Public Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	78 Outperform	$2.14B	14.29	16.39%	1.64%	15.99%	13.25%
STRA	78 Outperform	$1.96B	17.05	6.89%	2.93%	4.31%	-1.08%
LOPE	77 Outperform	$5.74B	24.76	30.77%	―	6.52%	11.72%
APEI	71 Outperform	$570.92M	29.96	10.20%	―	5.50%	338.59%
UTI	71 Outperform	$1.47B	23.66	23.11%	―	14.56%	127.02%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
LINC	55 Neutral	$612.76M	42.22	8.27%	―	14.53%	75.66%

American Public Education Corporate Events

American Public Education Eliminates Series A Preferred Stock

On June 23, 2025, American Public Education, Inc. filed a Certificate of Elimination to remove all matters related to its Series A Senior Preferred Stock from its Charter. On the same day, the company redeemed all 400 outstanding shares of this Preferred Stock at $111,137.88 per share, including accrued and unpaid dividends, totaling $44,455,152.00.

American Public Education Announces Preferred Stock Redemption

On June 13, 2025, American Public Education, Inc. announced its decision to redeem all 400 outstanding shares of its Series A Senior Preferred Stock on June 23, 2025. The redemption will be at approximately $111,137.88 per share, including accrued and unpaid dividends, totaling around $44.46 million.

American Public Education Highlights Strong Q1 2025 Performance

On June 5, 2025, American Public Education, Inc. released a supplemental financial presentation to be used in investor meetings, highlighting its strong financial performance and strategic initiatives. The company reported a revenue of $164.6 million and a net income of $7.5 million for the first quarter of 2025, exceeding previous guidance. APEI continues to experience positive enrollment momentum, particularly in its nursing and military education programs, and is planning a consolidation of its institutions to enhance operational efficiency. The company’s robust financial standing and strategic focus on high-demand education sectors position it well for future growth.