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Laureate Education Inc (LAUR)
NASDAQ:LAUR
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Laureate Education
(NASDAQ:LAUR)
74Outperform
Positive Factors
Financial Performance
Laureate expanded margins on a consolidated basis by over 500bps since 2022 to a historic high 30% EBITDA margin.
Growth Strategy
Laureate was able to grow at high single digit on a compounding basis without adding any new campuses into its platform.
Negative Factors
Currency Volatility
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 (LAUR) vs. S&P 500 (SPY)
Market Cap
$3.08B
Dividend YieldN/A
Average Volume (3M)912.52K
Price to Earnings (P/E)10.6
Beta (1Y)0.55
Revenue Growth5.55%
EPS Growth185.01%
CountryUS
Employees31,800
SectorConsumer Defensive
Sector Strength92
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.94
Shares Outstanding149,152,940
10 Day Avg. Volume744,585
30 Day Avg. Volume912,516
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.01
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.38
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.83Price Target Upside10.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Laureate Education Business Overview & Revenue Model
Company DescriptionLaureate 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 MoneyLaureate Education generates revenue primarily through tuition and fees collected from students enrolled in its degree programs. The company operates on a semester or quarterly academic calendar, and tuition varies by program, institution, and geographic location. In addition to tuition, Laureate may earn revenue from other educational services, such as continuing education courses, certifications, and language programs. Strategic partnerships with employers and government entities can also contribute to its earnings by facilitating student enrollment through sponsored programs or financial aid arrangements. The company's focus on operational efficiency and scalability in its institutions helps maintain profitability while expanding access to education in its target markets.
Laureate Education Financial Statement Overview
Summary
Laureate Education demonstrates strong profitability with increasing revenue and healthy profit margins. The balance sheet is stable, reflecting manageable leverage and effective use of equity. Cash flow management shows potential for improvement, particularly in free cash flow growth.Income Statement
Laureate Education shows a strong growth trajectory with a significant increase in revenue from 2023 to 2024. The gross profit margin is healthy, and the net profit margin has improved notably, reflecting enhanced profitability. EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the revenue growth rate, while positive, suggests the need for sustained growth to maintain competitive advantage.76
Positive
Balance Sheet
The company's balance sheet is stable with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity is strong, showcasing effective use of shareholder funds. The equity ratio is satisfactory, suggesting a balanced capital structure. Though liabilities have decreased, further reduction could enhance financial stability.72
Positive
Cash Flow
Operating cash flow to net income ratio is strong, indicating good cash generation from operations. However, the free cash flow growth rate is negative, reflecting challenges in maintaining cash reserves. The free cash flow to net income ratio is positive, suggesting efficient cash management despite the decrease in free cash flow.68
Positive
| 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 |
| 419.72M | 394.51M | 334.90M | 272.20M | 222.40M | EBIT |
| 374.00M | 338.82M | 270.00M | 70.50M | 22.50M | EBITDA |
| 537.80M | 378.30M | 350.80M | 54.02M | -126.23M | Net Income Common Stockholders |
| 296.47M | 107.59M | 69.57M | -283.10M | -320.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 91.35M | 89.39M | 85.20M | 324.80M | 750.10M | Total Assets |
| 1.86B | 2.13B | 1.97B | 2.21B | 4.97B | Total Debt |
| 427.41M | 582.70M | 648.00M | 569.00M | 1.51B | Net Debt |
| 336.06M | 493.31M | 562.80M | 244.20M | 764.70M | 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 |
| -57.50M | -51.92M | 30.30M | 2.04B | 587.50M | Financing Cash Flow |
| -166.90M | -201.89M | -461.60M | -2.68B | -272.70M |
Laureate Education Technical Analysis
Positive
20.64
Price Trends
19.62
Positive
19.23
Positive
17.71
Positive
Market Momentum
0.16
Negative
61.25
Neutral
90.21
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 20.64 is above the 20-day moving average (MA) of 19.45, above the 50-day MA of 19.62, and above the 200-day MA of 17.71, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 90.21 is Negative, 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 36 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $1.65B | 11.47 | 16.39% | 1.99% | -4.05% | 1.50% | |
79 Outperform | $4.00B | 19.99 | 14.63% | ― | 12.83% | 97.16% | |
74 Outperform | $1.53B | 28.84 | 21.41% | ― | 14.70% | 275.89% | |
74 Outperform | $3.08B | 10.63 | 30.98% | ― | 5.55% | 185.01% | |
73 Outperform | $5.09B | 23.13 | 30.13% | ― | 7.50% | 13.70% | |
73 Outperform | $1.96B | 17.41 | 6.86% | 2.94% | 5.72% | 11.02% | |
64 Neutral | $8.82B | 14.87 | 4.61% | 174.99% | 3.74% | 5.11% |
* Consumer Defensive Sector Average
Performance Comparison
LAUR
Laureate Education
20.64
5.66
37.78%
PRDO
Perdoceo Education
25.17
1.33
5.58%
ATGE
Adtalem Global Education
107.24
47.16
78.50%
LOPE
Grand Canyon Education
178.97
42.86
31.49%
STRA
Strategic Education
81.29
-36.40
-30.93%
UTI
Universal Technical Institute
28.57
12.96
83.02%
Laureate Education Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 2.84%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The call demonstrated strong enrollment growth and financial performance with improved margins and robust digital course expansion, but also highlighted challenges such as revenue timing shifts, net losses, and macroeconomic uncertainties.Q1-2025 Updates
Positive Updates
Enrollment Growth
Year-over-year new enrollment growth of 8% in Mexico and 6% in Peru, indicating strong demand and effective business model execution.
Financial Performance
Revenue for the first quarter was $236 million and adjusted EBITDA was $5 million, both ahead of guidance. On an organic constant currency basis, revenue was up 10% year-over-year, and adjusted EBITDA increased by 132%.
Margin Improvement
Expected increase in adjusted EBITDA margins by approximately 150 basis points for the year 2025, indicating improved efficiency and profitability.
Strong Digital Course Growth
Digital courses grew robustly in both markets with over 100,000 students enrolled, indicating successful penetration of the working adult market.
Negative Updates
Revenue Timing Shift
Approximately $26 million of revenue and $23 million in adjusted EBITDA shifted from the first quarter to the second half of the year due to academic calendar timing.
Net Loss Reported
First quarter net loss was $20 million, resulting in a loss per share of $0.13, highlighting profitability challenges.
Macro Economic Concerns
Anticipated continued volatility in GDP growth and foreign exchange rates due to evolving global trade dynamics.
Mexico Campus Consolidations
Expected one-time revenue loss of approximately $8 million in 2025 due to campus consolidations, though margins are expected to improve.
Company Guidance
In the first quarter of 2025, Laureate Education provided financial and operational guidance reflecting a positive start to the fiscal year, with increased visibility into enrollment trends. The company reported an 8% year-over-year new enrollment growth in Mexico and 6% in Peru, resulting in a tightened full-year guidance range and raised midpoint expectations for total enrollments, revenue, and adjusted EBITDA. Specifically, total enrollments are expected to reach between 491,000 and 495,000 students, with revenue projected between $1.560 billion and $1.575 billion, indicating a growth of up to 1% on a reported basis and 6% to 7% on an organic constant currency basis. The adjusted EBITDA is anticipated to be between $473 million and $480 million, reflecting growth of 5% to 7% on a reported basis and 11% to 13% on an organic constant currency basis. The company also highlighted its robust online program growth and commitment to returning excess capital to shareholders, with a $42 million stock repurchase completed in the first quarter and plans for continued repurchases.Laureate Education Corporate Events
Business Operations and StrategyFinancial Disclosures
Laureate Education Reports Q1 2025 Financial Results
Negative
May 1, 2025
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.
Spark’s Take on LAUR Stock
According to Spark, TipRanks’ AI Analyst, LAUR is a Outperform.
Laureate Education receives a solid score due to its strong financial performance and positive earnings call outlook. The attractive valuation further enhances its appeal. However, neutral technical indicators and cash flow challenges slightly temper the overall score.
To see Spark’s full report on LAUR stock, click here.
Financial Disclosures
Laureate Education Reports 2024 Financial Results
Positive
Feb 20, 2025
On February 20, 2025, Laureate Education reported its financial results for the fourth quarter and full-year 2024, highlighting a 3% revenue increase in Q4 and a 6% annual increase. The company saw significant growth in net income driven by changes in foreign exchange rates and higher operating income. Looking ahead to 2025, Laureate anticipates continued growth opportunities despite potential foreign currency translation challenges due to the weakening Mexican Peso.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.