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Aspen Group (ASPU)
:ASPU
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Aspen Group
(OTC:ASPU)
Rating:46Neutral
Price Target:
$0.00
▼(-100.00%Downside)
Aspen Group (ASPU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.91M
Dividend YieldN/A
Average Volume (3M)12.27K
Price to Earnings (P/E)―
Beta (1Y)0.29
Revenue Growth-19.36%
EPS Growth-84.06%
CountryUS
Employees312
SectorReal Estate
Sector Strength69
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-0.04
Shares Outstanding25,462,317
10 Day Avg. Volume21,013
30 Day Avg. Volume12,265
Financial Highlights & Ratios
PEG Ratio-2.18
Price to Book (P/B)3.17
Price to Sales (P/S)0.00
P/FCF Ratio-6.54
Enterprise Value/Market Cap28.92
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit2.93
Enterprise Value/Ebitda-3.26
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Aspen Group Business Overview & Revenue Model
Company DescriptionAspen Group, Inc. (ASPU) is an education technology company that operates primarily in the United States. The company focuses on providing online higher education services, targeting adult learners and other non-traditional student demographics. Aspen Group offers a range of degree programs, including nursing, business, and education, through its two main institutions: Aspen University and United States University. These institutions aim to deliver affordable, high-quality education through innovative online platforms, catering to the needs of working professionals and those seeking career advancement.
How the Company Makes MoneyAspen Group primarily generates revenue through tuition fees paid by its students enrolled in various degree programs. The company's revenue model is based on the enrollment of students in its online courses, with a significant portion of its earnings derived from the nursing programs, which have been a focal point due to high demand. Aspen Group also benefits from partnerships with healthcare organizations that can provide a steady stream of students and potential tuition reimbursement agreements. Additionally, Aspen Group may receive revenue through financial aid programs and government assistance that support students in funding their education. The company's financial performance can be influenced by enrollment trends, tuition rates, and the successful implementation of its growth strategies in the education sector.
Aspen Group Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q2-2024)
| % Change Since: -31.25%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant financial improvements, enrollment growth, and improved NCLEX pass rates despite revenue challenges and legal settlement costs.Q2-2024 Updates
Positive Updates
Reduced Net Loss
Net loss narrowed by 30% year-over-year, demonstrating financial discipline and effective cost management.
Positive EBITDA
Achieved fourth consecutive quarter of positive EBITDA, with a cumulative positive EBITDA of approximately $2.7 million over the past four quarters.
Cash Generation and Liquidity
Generated over $400,000 of cash from operations and projected unrestricted cash balance exceeding $2 million by the end of January 2024.
Enrollment Growth
Enrollments increased by 5% year-over-year and 34% sequentially, reflecting strong demand for postgraduate nursing degrees.
Improved NCLEX Pass Rates
NCLEX first-time pass rate in Arizona increased to 89%, with similar success in Texas and Tennessee.
Cost Control Measures
Year-over-year G&A expense down 23% due to cost control efforts and restructuring in previous fiscal quarters.
Negative Updates
Revenue Decrease
Total revenue decreased by 19% year-over-year, mainly due to the teach-out of the pre-licensure program and lower marketing spend.
Legal Settlement Costs
Final settlement of $550,000 approved for class action complaint in Arizona, with $50,000 paid by Aspen University.
Heightened Cash Management Status
Aspen University remains on Heightened Cash Management 2 status, impacting the timing of federal financial aid reimbursements.
Company Guidance
During the Aspen Group's second quarter fiscal year 2024 earnings call, executives provided detailed guidance on the company's financial and operational performance. The company reported a notable 30% year-over-year reduction in net loss and achieved positive EBITDA for the fourth consecutive quarter. Enrollments rose by 34% sequentially, driven by strong demand in the healthcare sector, particularly for postgraduate nursing degrees. Despite a 19% decrease in total revenue to $13.8 million, attributed largely to the teach-out of the pre-licensure program, gross margin improved to 63%, up from 60% the previous year. The quarter saw a decrease in G&A expenses by 23% and a marked reduction in marketing spend, contributing to a positive cash flow from operations of $409,000. The company anticipates an unrestricted cash balance exceeding $2 million by the end of January 2024, bolstered by a significant financial aid payment of approximately $3.9 million. Additionally, Aspen University reported an 89% first-time NCLEX pass rate in Arizona, reflecting improved academic performance. However, the company withheld specific guidance for future quarters.Aspen Group Financial Statement Overview
Summary
Aspen Group faces significant financial challenges, including declining revenues and profitability, coupled with increasing debt levels. While there are some strengths in gross profit margins and cash flow improvements, the overall financial health remains a concern, with the company needing to address its profitability and leverage issues to improve its financial stability.Income Statement
The company has been experiencing declining revenues and worsening profitability over the years. For the TTM (Trailing-Twelve-Months), the gross profit margin stands at 64.4%, indicating effective cost management relative to revenue. However, the net profit margin is negative at -28.3%, highlighting significant losses. Revenue has decreased substantially compared to the previous year, showing a negative growth trajectory, which is concerning.40
Negative
Balance Sheet
The company's debt-to-equity ratio is 0.86, indicating a moderate level of leverage. The return on equity is negative at -46.3% for the TTM, suggesting poor profitability for shareholders. The equity ratio of 41.7% demonstrates a solid equity base relative to total assets, but the declining stockholder's equity over the years is a negative trend.55
Neutral
Cash Flow
The free cash flow growth rate is positive, which is encouraging, but the company has historically struggled with negative free cash flows. The operating cash flow to net income ratio is positive, showing better cash generation relative to net losses, yet the overall cash position has weakened.45
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 44.60M | 51.40M | 66.32M | 76.69M | 67.81M | 49.06M | Gross Profit |
| 28.73M | 31.44M | 35.53M | 41.44M | 38.36M | 29.93M | EBIT |
| -2.36M | -4.15M | -5.57M | -7.47M | -5.98M | -2.61M | EBITDA |
| -7.39M | -4.80M | -1.85M | -5.07M | -5.94M | -1.59M | Net Income Common Stockholders |
| -12.63M | -13.58M | -8.35M | -9.59M | -10.45M | -5.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.16M | 2.62M | 5.72M | 6.48M | 8.51M | 14.35M | Total Assets |
| 65.35M | 75.95M | 80.87M | 91.07M | 80.81M | 66.24M | Total Debt |
| 23.56M | 26.67M | 35.00M | 33.72M | 18.33M | 15.82M | Net Debt |
| 22.40M | 24.05M | 29.28M | 27.24M | 9.82M | 1.47M | Total Liabilities |
| 38.07M | 43.67M | 45.32M | 48.52M | 31.72M | 24.49M | Stockholders Equity |
| 27.28M | 32.28M | 35.55M | 42.55M | 49.09M | 41.75M |
| Cash Flow | Free Cash Flow | ||||
| 1.39M | -4.81M | -7.00M | -15.61M | -7.99M | -9.04M | Operating Cash Flow |
| 2.47M | -3.66M | -4.40M | -11.28M | 985.58K | -5.75M | Investing Cash Flow |
| -1.16M | -1.33M | -2.60M | -4.33M | -8.98M | -3.29M | Financing Cash Flow |
| -3.82M | 1.89M | -190.47K | 14.86M | 3.75M | 16.98M |
Aspen Group Technical Analysis
Negative
0.11
Price Trends
0.14
Negative
0.15
Negative
0.14
Negative
Market Momentum
>-0.01
Positive
39.35
Neutral
33.95
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASPU, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.14, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.35 is Neutral, neither overbought nor oversold. The STOCH value of 33.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASPU.
Aspen Group Risk Analysis
Aspen Group disclosed 64 risk factors in its most recent earnings report. Aspen Group reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aspen Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $2.83B | 10.72 | 0.40% | 6.10% | 5.80% | -21.26% | |
52 Neutral | $7.58M | ― | -49.39% | ― | ― | ― | |
46 Neutral | $2.91M | ― | -44.40% | ― | -19.36% | -84.06% | |
44 Neutral | $648.06K | ― | ― | ― | ― | ||
43 Neutral | $6.13M | ― | -7.52% | ― | -28.27% | -409.38% | |
37 Underperform | $7.08M | ― | -83.71% | ― | 42.73% | 18.30% |
* Real Estate Sector Average
Performance Comparison
ASPU
Aspen Group
0.11
-0.09
-45.00%
AMBO
Ambow Education Holding
2.65
1.35
103.85%
WAFU
Wah Fu Education Group
1.39
-0.52
-27.23%
CLEUF
China Liberal Education Holdings
0.19
-2,855.81
-99.99%
EEIQ
Elite Education Group International
0.54
-0.35
-39.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.