Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $3.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.61
• Revenue Growth: 1.26%
• EPS Growth: 140.30%
• Country: US
• Employees: 31,800
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Education & Training Services
• EPS (TTM): -0.11
• Shares Outstanding: 148,810,170
• 10 Day Avg. Volume: 1,453,357
• 30 Day Avg. Volume: 1,137,940
• PEG Ratio: -4.11
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.03
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 9.69
• Enterprise Value/Ebitda: 2.05
• 1Y Price Target: $26.50
• Price Target Upside: 15.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: $26.00 ▲(12.99%Upside)

Laureate Education's overall score is driven by its strong financial performance, stable balance sheet, and robust cash flow. Technical indicators suggest caution due to overbought conditions, while valuation reflects reasonable pricing. The earnings call provides a balanced outlook with positive enrollment trends but also highlights challenges, contributing to a moderate overall stock score.

Positive Factors

Enrollment Growth

Mexico reported strong new enrollment growth of 8% in its secondary intake period, with trends strong in working adult focused online and at UVM.

Market Position

Management noted LAUR has the #1 brand in Peru and the #2 brand in Mexico within the private sector.

Operational Performance

Management raised the low end of its guided range on operational performance after the new intake period along with some foreign exchange benefits.

Negative Factors

Foreign Exchange Impact

Revenue and adjusted EBITDA guidance negatively impacted by 700bps of f/x headwind due to the volatility in Mexico.

Investment Outlook

Peru is expected to drive much of 2025 growth while Mexico's outlook is more conservative given a pullback in investment indirectly impacting consumers.

Laureate Education Business Overview & Revenue Model

Company Description

Laureate Education, Inc. (LAUR) is a leading provider of higher education services, primarily focused on the Latin American region. The company operates a network of higher education institutions offering undergraduate and graduate degree programs in various fields, including business, engineering, medicine, law, and hospitality management. With a mission to expand access to quality education, Laureate Education aims to empower students to achieve their professional and personal goals through innovative learning experiences.

How the Company Makes Money

Laureate Education generates revenue primarily through tuition and fees collected from students enrolled in its programs. The company's revenue model is centered around the enrollment of students in its multiple institutions, with income streams coming from the academic courses and degrees offered. Additionally, Laureate may receive income from ancillary services provided to students, such as housing, dining, and other student-related services. Strategic partnerships with various educational entities and organizations can also contribute to its revenues by enhancing program offerings and broadening its reach in the educational sector.

Laureate Education Financial Statement Overview

Summary

Laureate Education showcases strong profitability with a solid EBIT and EBITDA margin, reflecting efficient operations despite slight revenue fluctuations. The balance sheet is stable with a manageable debt-to-equity ratio, and the cash flow is robust, indicating strong cash-generating ability and potential for future expansion.

Income Statement

Laureate Education demonstrates strong profitability with consistent gross and net profit margins over the years. The TTM (Trailing-Twelve-Months) shows a slight decrease in revenue compared to the previous year, but the company maintains an impressive EBIT and EBITDA margin, indicating efficient operations. Despite some fluctuations, the overall revenue growth trend is positive since 2020, reflecting robust business performance.

Balance Sheet

The balance sheet of Laureate Education is stable, with a manageable debt-to-equity ratio, showcasing prudent financial leverage. The equity ratio is healthy, indicating a strong equity base relative to total assets. Return on equity is positive, reflecting good returns for shareholders. However, total assets have slightly declined over time, indicating potential impacts on long-term growth.

Cash Flow

The cash flow statements reveal a solid free cash flow position and consistent operating cash flow, which underscores the company's strong cash-generating ability. The free cash flow to net income ratio is favorable, indicating efficient conversion of income into cash flows. The company has shown significant improvement in free cash flow growth since previous years, providing a strong foundation for future investments and debt servicing.

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

Laureate Education Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LAUR, the sentiment is Neutral. The current price of 23.01 is below the 20-day moving average (MA) of 23.54, above the 50-day MA of 22.84, and above the 200-day MA of 19.83, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LAUR.

Laureate Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	78 Outperform	$4.83B	21.38	29.85%	―	6.31%	11.24%
ATGE	76 Outperform	$4.12B	19.01	16.62%	―	13.10%	127.72%
PRDO	71 Outperform	$1.87B	12.72	16.54%	1.82%	6.35%	0.35%
UTI	70 Outperform	$1.72B	30.41	21.81%	―	14.69%	188.00%
STRA	69 Neutral	$1.88B	16.72	6.86%	3.09%	5.72%	11.02%
LAUR	68 Neutral	$3.42B	12.26	31.14%	―	1.26%	140.30%
Sector *	65 Neutral	$27.20B	15.73	-4.29%	2.57%	1.03%	4.90%

Laureate Education Corporate Events

Laureate Education Holds Annual Stockholders Meeting

On May 22, 2025, Laureate Education held its Annual Meeting of Stockholders, where key decisions were made. Ten directors were elected to serve until the 2026 Annual Meeting, and the executive compensation was approved on a non-binding basis. Additionally, PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions reflect the company’s ongoing governance and operational strategies.

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.

Laureate Education Reports Q1 2025 Financial Results

On May 1, 2025, Laureate Education reported its financial results for the first quarter of 2025, revealing a decrease in new enrollments by 2% and a 14% drop in revenue compared to the first quarter of 2024. Despite these declines, the company remains optimistic about offsetting the impacts of intra-year academic calendar timing in the second half of the year, as it tightens its full-year 2025 guidance. The company highlights its strong balance sheet and commitment to returning excess capital to shareholders, while also emphasizing its role in expanding access to education in Mexico and Peru.