Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $4.65B
• Dividend Yield: N/A
• Average Volume (3M): 949.23K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.69
• Revenue Growth: 0.44%
• EPS Growth: 35.19%
• Country: US
• Employees: 31,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.79
• Shares Outstanding: 147,363,080
• 10 Day Avg. Volume: 1,246,823
• 30 Day Avg. Volume: 949,229
• 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: 0.80
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 8.85
• Enterprise Value/Ebitda: 7.66
• 1Y Price Target: $31.00
• Price Target Upside: -1.71% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $33.00 ▲(4.63% Upside)

Laureate Education's strong financial performance and positive earnings call are the most significant factors driving the score. The technical analysis supports a bullish outlook, though the high RSI suggests caution. The valuation is reasonable, but the lack of a dividend yield may deter income-focused investors.

Positive Factors

Revenue Growth

Consistent enrollment growth supports sustained revenue increases, highlighting strong demand for Laureate's educational offerings and effective market strategies.

Strategic Expansion

Expansion into new locations in Mexico and Peru enhances market presence and growth potential, leveraging regional demand for higher education.

Financial Guidance

Improved financial guidance reflects strong operational performance and favorable market conditions, indicating confidence in sustained growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth could limit future investment capabilities and affect financial flexibility, posing a risk to long-term growth initiatives.

Revenue Timing Impact

Revenue timing shifts may create short-term volatility and complicate financial planning, potentially impacting investor confidence and operational stability.

Debt Levels

While leverage is moderate, maintaining debt levels is crucial to ensure financial flexibility and avoid potential constraints on strategic initiatives.

Laureate Education Business Overview & Revenue Model

Company Description

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. The company offers a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It provides its services in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.

How the Company Makes Money

Laureate Education generates revenue primarily through tuition and fees charged to students enrolled in its degree programs across its institutions. The company operates on a revenue model that includes both online and campus-based courses, with a significant focus on online education which allows for scalability and a broader reach. Key revenue streams include undergraduate and graduate program enrollments, as well as continuing education and professional development courses. Additionally, Laureate may benefit from partnerships with universities and other educational institutions, enabling shared resources and joint programs that can enhance its offerings and attract more students. Furthermore, financial aid and student loans often play a crucial role in facilitating student enrollments, thereby contributing to Laureate's overall revenue.

Laureate Education Financial Statement Overview

Summary

Laureate Education demonstrates consistent revenue growth and healthy profit margins. The balance sheet is stable with moderate leverage and strong return on equity. However, the decline in free cash flow growth warrants attention.

Income Statement

Laureate Education has demonstrated consistent revenue growth over the years, with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.63%. The company maintains healthy margins, with a gross profit margin of 27.23% and a net profit margin of 16.40% in the TTM period. EBIT and EBITDA margins are also strong at 24.97% and 31.46%, respectively. However, there was a slight decline in revenue from the previous annual period, indicating potential challenges in sustaining growth.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.43, indicating moderate leverage. Return on equity is robust at 26.68%, showcasing efficient use of equity to generate profits. The equity ratio stands at 51.65%, suggesting a solid equity base relative to total assets. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 13.35% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.53, and the free cash flow to net income ratio is 0.74, indicating adequate cash generation relative to net income. Despite the decline in free cash flow growth, the company maintains a reasonable cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.57B	1.48B	1.24B	1.09B	1.02B
Gross Profit	422.72M	419.76M	394.51M	334.90M	272.20M	222.40M
EBITDA	488.38M	537.80M	378.30M	350.80M	54.02M	-126.23M
Net Income	254.65M	296.47M	107.59M	69.57M	-283.10M	-320.70M
Balance Sheet
Total Assets	2.04B	1.86B	2.13B	1.97B	2.21B	4.97B
Cash, Cash Equivalents and Short-Term Investments	135.35M	91.35M	89.39M	85.20M	324.80M	750.10M
Total Debt	448.98M	427.41M	582.70M	648.00M	569.00M	1.51B
Total Liabilities	983.16M	903.52M	1.18B	1.20B	1.07B	2.71B
Stockholders Equity	1.05B	959.55M	950.07M	774.40M	1.14B	2.26B
Cash Flow
Free Cash Flow	170.48M	160.85M	194.34M	125.40M	-206.20M	184.90M
Operating Cash Flow	230.30M	232.73M	250.78M	178.20M	-155.80M	259.50M
Investing Cash Flow	-49.36M	-57.55M	-51.92M	30.30M	2.04B	587.50M
Financing Cash Flow	-163.67M	-166.94M	-201.89M	-461.60M	-2.68B	-272.70M

Laureate Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAUR, the sentiment is Positive. The current price of 31.54 is above the 20-day moving average (MA) of 29.33, above the 50-day MA of 26.71, and above the 200-day MA of 22.06, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 83.74 is Negative, neither overbought nor oversold. The STOCH value of 87.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAUR.

Laureate Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	$2.44B	16.29	15.38%	1.43%	15.99%	13.25%
LAUR	78 Outperform	$4.65B	18.62	25.81%	―	0.44%	35.19%
STRA	78 Outperform	$2.05B	17.82	6.91%	2.79%	4.31%	-1.08%
LOPE	77 Outperform	$6.12B	26.61	30.40%	―	6.52%	11.72%
ATGE	74 Outperform	$5.52B	24.93	16.54%	―	12.85%	81.69%
UTI	73 Outperform	$1.78B	28.60	20.57%	―	14.56%	127.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Laureate Education Corporate Events

Laureate Education Reports Q2 2025 Financial Results

On July 31, 2025, Laureate Education announced its financial results for the second quarter and the first half of 2025, showing a 5% increase in revenue to $524.2 million for the quarter compared to the same period in 2024. Despite a decrease in net income due to foreign currency exchange losses, the company increased its full-year 2025 guidance following improved foreign currency rates and remains committed to its strategic priorities, including opening two new campuses in September.

The most recent analyst rating on (LAUR) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Laureate Education stock, see the LAUR Stock Forecast page.