Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: N/A
• Average Volume (3M): 823.67K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.57
• Revenue Growth: 1.26%
• EPS Growth: 140.30%
• Country: US
• Employees: 31,800
• Sector: Consumer Defensive
• Sector Strength: 72
• Industry: Education & Training Services
• EPS (TTM): -0.11
• Shares Outstanding: 148,810,170
• 10 Day Avg. Volume: 748,477
• 30 Day Avg. Volume: 823,668
• PEG Ratio: -3.94
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.31
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 6.05
• Enterprise Value/Ebitda: 2.05
• 1Y Price Target: $23.17
• Price Target Upside: 6.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ―

Laureate Education shows solid financial performance and positive earnings call outlook, driven by enrollment growth and improved margins. Despite cash flow challenges and macroeconomic concerns, the stock's attractive valuation and positive technical indicators contribute to a favorable overall 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

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 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 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 and a stable balance sheet. Revenue and profit margins are improving, but there is a need to enhance cash flow generation for future growth and investments.

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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.53B	1.57B	1.48B	1.24B	1.09B	1.02B
	Gross Profit
634.53M	419.76M	394.51M	334.90M	272.20M	222.40M
	EBIT
349.66M	373.98M	338.82M	270.00M	70.50M	22.50M
	EBITDA
463.43M	537.80M	378.30M	350.80M	54.02M	-126.23M
	Net Income Common Stockholders
287.70M	296.47M	107.59M	69.57M	-283.10M	-320.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
133.84M	91.35M	89.39M	85.20M	324.80M	750.10M
	Total Assets
2.18B	1.86B	2.13B	1.97B	2.21B	4.97B
	Total Debt
628.03M	427.41M	582.70M	648.00M	569.00M	1.51B
	Net Debt
494.19M	336.06M	493.31M	562.80M	244.20M	764.70M
	Total Liabilities
1.24B	903.52M	1.18B	1.20B	1.07B	2.71B
	Stockholders Equity
933.64M	959.55M	950.07M	774.40M	1.14B	2.26B
Cash Flow		Free Cash Flow
196.74M	160.85M	194.34M	125.40M	-206.20M	184.90M
	Operating Cash Flow
257.36M	232.73M	250.78M	178.20M	-155.80M	259.50M
	Investing Cash Flow
-46.12M	-57.50M	-51.92M	30.30M	2.04B	587.50M
	Financing Cash Flow
-219.97M	-166.90M	-201.89M	-461.60M	-2.68B	-272.70M

Laureate Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 21.78 is below the 20-day moving average (MA) of 21.82, above the 50-day MA of 20.43, and above the 200-day MA of 18.23, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 53.85 is Neutral, neither overbought nor oversold. The STOCH value of 12.71 is Positive, 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
LOPE	82 Outperform	$5.59B	24.37	29.85%	―	6.31%	11.24%
ATGE	80 Outperform	$4.79B	21.69	16.62%	―	13.10%	127.72%
UTI	79 Outperform	$1.93B	34.06	21.81%	―	14.69%	188.00%
PRDO	77 Outperform	$2.01B	13.59	16.54%	1.62%	6.35%	0.35%
LAUR	74 Outperform	$3.35B	11.64	31.14%	―	1.26%	140.30%
STRA	73 Outperform	$2.12B	18.75	6.86%	2.71%	5.72%	11.02%
Sector *	64 Neutral	$8.78B	14.55	4.78%	173.91%	3.39%	2.17%

Laureate Education Corporate Events

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.