Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.71
• Revenue Growth: 2.01%
• EPS Growth: -13.82%
• Country: US
• Employees: 31,800
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.25
• Shares Outstanding: 147,369,160
• 10 Day Avg. Volume: 949,582
• 30 Day Avg. Volume: 1,122,565
• PEG Ratio: 0.06
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 2.36
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: 7.90
• 1Y Price Target: $34.75
• Price Target Upside: 12.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $32.00 ▲(3.46% Upside)

Laureate Education's strong financial performance and positive earnings call are the primary drivers of its score. The company's robust balance sheet and strategic growth initiatives are significant strengths. However, technical indicators suggest a neutral trend, and valuation metrics indicate moderate pricing, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a stable demand for Laureate's educational programs and effective market positioning, supporting long-term business expansion.

Enrollment Growth

Positive enrollment growth suggests increasing student demand and effective recruitment strategies, which are crucial for sustaining revenue and market presence.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and resilience against economic fluctuations.

Negative Factors

Free Cash Flow Decline

Declining free cash flow growth may limit Laureate's ability to fund new initiatives or manage debt, potentially impacting long-term financial health.

Pricing Pressure

Pricing pressure from online programs could reduce average revenue per student, affecting profitability and requiring strategic adjustments to maintain margins.

Macroeconomic Sluggishness

Economic sluggishness in key markets like Mexico can hinder growth prospects and revenue, necessitating strategic responses to mitigate external risks.

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 fees paid by students enrolled in its degree programs. The company offers a variety of undergraduate and graduate programs, which are priced based on factors like program type and delivery method (online or on-campus). In addition to tuition, Laureate may also earn revenue from ancillary services such as course materials, student housing, and other fees associated with student enrollment. Key revenue streams include partnerships with institutions that enhance its educational offerings and strategic alliances that may lead to increased enrollment and expanded market reach. Furthermore, Laureate's focus on online education allows it to tap into a broader demographic, including working professionals seeking flexible learning options, which can contribute significantly to its earnings.

Laureate Education Financial Statement Overview

Summary

Laureate Education shows consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and high return on equity, indicating financial stability. However, the decline in free cash flow growth suggests potential challenges in cash generation.

Income Statement

Laureate Education has demonstrated consistent revenue growth over the years, with a TTM revenue growth rate of 2.04%. The company maintains healthy margins, with a gross profit margin of 26.75% and a net profit margin of 12.86% in the TTM period. EBIT and EBITDA margins are also strong at 23.31% and 29.89%, respectively. However, there has been a decline in net profit margin compared to the previous year, indicating some pressure on profitability.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.14 in the TTM period, significantly improved from previous years. Return on equity is robust at 20.18%, indicating efficient use of equity to generate profits. The equity ratio stands at 52.86%, showcasing a stable financial structure with a good balance between debt and equity.

Cash Flow

Cash flow analysis shows a decrease in free cash flow growth by 8.33% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.49, and the free cash flow to net income ratio is 0.69, indicating that the company is generating sufficient cash relative to its net income. The decline in free cash flow growth suggests potential challenges in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.57B	1.48B	1.24B	1.09B	1.02B
Gross Profit	423.73M	419.76M	394.51M	334.91M	272.21M	222.46M
EBITDA	473.43M	537.80M	378.30M	350.80M	54.02M	-126.23M
Net Income	203.71M	296.47M	107.59M	69.57M	192.45M	-613.33M
Balance Sheet
Total Assets	2.12B	1.86B	2.13B	1.97B	2.21B	4.97B
Cash, Cash Equivalents and Short-Term Investments	246.45M	91.35M	89.39M	85.20M	324.80M	867.30M
Total Debt	438.40M	427.41M	582.70M	648.00M	569.00M	1.51B
Total Liabilities	997.04M	903.52M	1.18B	1.20B	1.07B	2.71B
Stockholders Equity	1.12B	959.55M	950.07M	774.40M	1.14B	2.28B
Cash Flow
Free Cash Flow	240.10M	160.85M	194.34M	125.40M	-206.53M	184.93M
Operating Cash Flow	313.50M	232.73M	250.78M	178.20M	-156.08M	259.56M
Investing Cash Flow	-62.77M	-57.55M	-52.04M	30.30M	2.04B	573.68M
Financing Cash Flow	-152.07M	-166.94M	-201.76M	-461.60M	-2.68B	-259.00M

Laureate Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 30.93 is above the 20-day moving average (MA) of 30.48, above the 50-day MA of 30.16, and above the 200-day MA of 24.60, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 84.73 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
GHC	75 Outperform	$4.76B	6.53	17.20%	0.65%	4.13%	228.37%
LAUR	73 Outperform	$4.37B	21.71	20.15%	―	2.01%	-13.82%
ATGE	73 Outperform	$3.41B	14.08	17.38%	―	12.24%	52.97%
STRA	73 Outperform	$1.86B	16.43	6.76%	3.04%	3.74%	-8.40%
PRDO	72 Outperform	$1.84B	12.22	16.14%	1.97%	24.23%	17.56%
LOPE	68 Neutral	$4.38B	20.74	27.77%	―	7.05%	-2.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Laureate Education Corporate Events

Laureate Education’s Earnings Call Highlights Robust Growth

Laureate Education’s recent earnings call reflected a predominantly positive sentiment, highlighting robust revenue and EBITDA performance, alongside growth in enrollments and strategic expansion in stock repurchases. The company did, however, acknowledge challenges such as timing impacts in Peru and economic sluggishness in Mexico.

Laureate Education Reports Revenue Growth and Expands Buyback

Laureate Education, Inc. operates five higher education institutions across Mexico and Peru, offering undergraduate, graduate, and specialized degree programs through both campus-based and online learning platforms.

Laureate Education Boosts Stock Repurchase by $150 Million

On October 30, 2025, Laureate Education reported its financial results for the third quarter and nine months ending September 30, 2025, showing a 9% increase in revenue for the quarter and a 2% rise for the nine months compared to the previous year. Despite a decrease in net income due to unfavorable foreign currency exchange impacts, the company announced a $150 million increase in its stock repurchase authorization, reflecting confidence in its financial stability and commitment to returning capital to shareholders.

The most recent analyst rating on (LAUR) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Laureate Education stock, see the LAUR Stock Forecast page.