Laureate Education (LAUR)
NASDAQ:LAUR
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Laureate Education
(NASDAQ:LAUR)
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Rating:68Neutral
Price Target:
$37.00
▲(9.34% Upside)
Action:Reiterated
Date:05/28/26
The score is driven mainly by strong profitability and improving cash generation, supported by a generally positive earnings-call outlook with reaffirmed guidance and EPS upside from buybacks. These strengths are tempered by a weak/less interpretable valuation signal (negative P/E) and only moderate technical strength with the stock still below its 100-day average.
Positive Factors
Cash generation
Sustained positive operating and free cash flow with multi‑year improvement provides durable internal funding for campus investments, debt paydown and buybacks. This strengthens financial flexibility and supports capital returns while limiting reliance on external financing.
Negative Factors
Higher online attrition
Rapid online scale accompanied by above‑average attrition can depress lifetime student revenue and increase marketing and retention costs. Over months this erodes realized enrollment gains, pressures margins for digital programs, and complicates forecasting of sustainable revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained positive operating and free cash flow with multi‑year improvement provides durable internal funding for campus investments, debt paydown and buybacks. This strengthens financial flexibility and supports capital returns while limiting reliance on external financing.
Read all positive factors
Laureate Education (LAUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.48B
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)16.8
Beta (1Y)0.65
Revenue Growth13.81%
EPS Growth1.26%
CountryUS
Employees31,800
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.88
Shares Outstanding139,978,290
10 Day Avg. Volume1,061,624
30 Day Avg. Volume1,223,282
Financial Highlights & Ratios
PEG Ratio-17.05
Price to Book (P/B)4.19
Price to Sales (P/S)2.92
P/FCF Ratio18.91
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit10.76
Enterprise Value/Ebitda9.74
Forecast
1Y Price Target
$41.17Price Target Upside21.65% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.15
Revenue Forecast (FY)$1.91B
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 deg...
How the Company Makes Money
Laureate Education generates revenue primarily by charging tuition and related academic fees to students enrolled at its institutions. Its core revenue stream is student enrollment-based tuition across undergraduate and graduate degree programs, w...
Laureate Education Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a positive operational momentum driven by strong enrollment growth (notably a 13% intake increase in Peru and overall new enrollment +9%) and reinforced full-year financial guidance with upgraded EPS driven by $105M of share repurchases. Management highlighted healthy revenue and adjusted EBITDA growth targets (11%–12% reported revenue growth; 12%–14% reported adjusted EBITDA growth) and a strong balance sheet (net debt ~$60M) supporting continued capital returns. Near-term weakness is largely seasonal and timing-related: Q1 was a low-revenue quarter with a small adjusted EBITDA loss (-$2M), GAAP net loss ($22M), Mexico experienced a 16% decline in Q1 adjusted EBITDA, and Peru’s out-of-session quarter produced a negative $35M adjusted EBITDA despite improvement versus prior year. Management expects margin expansion across both markets weighted to the second half, while acknowledging short-term drag from new campus investments and higher attrition in rapidly scaling online programs. Overall, positive strategic and financial trends outweigh the seasonal and timing challenges discussed.Positive Updates
Strong Enrollment Momentum
New enrollment growth of 13% in Peru and 4% in Mexico through completion of intake cycles by mid-April; overall new and total enrollment volumes increased 9% and 6% respectively versus the comparable intake period.
Negative Updates
Seasonal Q1 Weakness and Net Loss
First quarter is seasonally low: Q1 adjusted EBITDA was negative $2M and GAAP net loss was $22M (loss per share $0.15); adjusted net loss was $24M (adjusted loss per share $0.17).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Enrollment Momentum
New enrollment growth of 13% in Peru and 4% in Mexico through completion of intake cycles by mid-April; overall new and total enrollment volumes increased 9% and 6% respectively versus the comparable intake period.
Read all positive updates
Company Guidance
Laureate reaffirmed its full‑year 2026 guidance (and raised adjusted EPS by $0.05 after $105M of Q1 share repurchases) targeting total enrollments of 516,000–521,000 (up 4–5% vs. 2025), revenues of $1.890–1.905 billion (up 11–12% reported; 6–7% constant currency), adjusted EBITDA of $583–593 million (up 12–14% reported; 7–9% constant currency) implying roughly 50 basis points of margin expansion at the midpoint, adjusted EPS of $2.00–2.08 (up 16–21% vs. 2025) on a diluted share count of ~141 million, and ~50% adjusted EBITDA to unlevered free cash flow conversion; management also provided Q2 guidance of $597–601 million revenue and $239–243 million adjusted EBITDA. For context, Q1 results included $273 million revenue and an adjusted EBITDA loss of $2 million (adjusted net loss $24M, adjusted loss per share $0.17; GAAP net loss $22M, loss per share $0.15), a balance sheet with $217M gross debt and $157M cash (net debt $60M), and $76M remaining under the repurchase authorization.Laureate Education Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.74B | 1.70B | 1.57B | 1.48B | 1.24B | 1.09B |
| Gross Profit | 467.98M | 482.18M | 419.76M | 394.51M | 334.91M | 272.21M |
| EBITDA | 517.40M | 522.58M | 537.80M | 378.30M | 350.80M | 54.02M |
| Net Income | 279.58M | 281.63M | 296.47M | 107.59M | 69.57M | 192.45M |
Balance Sheet | ||||||
| Total Assets | 2.28B | 2.21B | 1.86B | 2.13B | 1.97B | 2.21B |
| Cash, Cash Equivalents and Short-Term Investments | 162.99M | 146.70M | 91.35M | 89.39M | 85.20M | 324.80M |
| Total Debt | 722.71M | 847.26M | 427.41M | 582.70M | 648.00M | 569.00M |
| Total Liabilities | 1.23B | 1.02B | 903.52M | 1.18B | 1.20B | 1.07B |
| Stockholders Equity | 1.05B | 1.19B | 959.55M | 950.07M | 774.40M | 1.14B |
Cash Flow | ||||||
| Free Cash Flow | 263.59M | 263.15M | 160.85M | 194.34M | 125.40M | -206.53M |
| Operating Cash Flow | 370.35M | 366.19M | 232.73M | 250.78M | 178.20M | -156.08M |
| Investing Cash Flow | -106.39M | -102.65M | -57.55M | -52.04M | 30.30M | 2.04B |
| Financing Cash Flow | -229.12M | -222.47M | -166.94M | -201.76M | -461.60M | -2.68B |
Laureate Education Technical Analysis
Positive
33.84
Price Trends
33.09
Positive
33.64
Negative
31.90
Positive
Market Momentum
0.04
Negative
52.43
Neutral
36.70
Neutral
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 33.84 is above the 20-day moving average (MA) of 32.71, above the 50-day MA of 33.09, and above the 200-day MA of 31.90, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 36.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LAUR.
Laureate Education Risk Analysis
Laureate Education disclosed 35 risk factors in its most recent earnings report. Laureate Education reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Laureate Education Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.03B | 12.07 | 17.21% | 1.88% | 17.75% | 15.21% | |
77 Outperform | $1.74B | 13.24 | 7.85% | 2.99% | 3.02% | 20.69% | |
72 Outperform | $3.97B | 18.53 | 29.53% | ― | 7.43% | 0.49% | |
68 Neutral | $4.48B | 16.85 | 25.38% | ― | 13.81% | 1.26% | |
65 Neutral | $4.73B | 16.16 | 6.49% | 0.65% | 3.69% | -52.56% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
LAUR
Laureate Education
33.10
10.36
45.56%
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STRA
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GHC
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1,110.13
164.29
17.37%
Laureate Education Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Laureate Education Shareholders Approve 2026 Incentive Plan
Positive
May 27, 2026
At its 2026 Annual Meeting of Stockholders held on May 21, 2026, Laureate Education received shareholder approval for its 2026 Long-Term Incentive Plan, authorizing the board’s compensation committee to grant stock-based and other incentive ...
Stock BuybackFinancial Disclosures
Laureate Education Posts Q1 2026 Results, Lifts Guidance
Neutral
Apr 30, 2026
Laureate Education reported first-quarter 2026 results on April 30, 2026, highlighting strong enrollment momentum but weaker profitability. New enrollments rose 9% and total enrollments 6% versus a year earlier, with Peru leading growth, while rev...
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.