Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $3.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.67
• Revenue Growth: 0.44%
• EPS Growth: 35.19%
• Country: US
• Employees: 31,800
• Sector: Consumer Defensive
• Sector Strength: 59
• Industry: Education & Training Services
• EPS (TTM): 0.79
• Shares Outstanding: 147,363,080
• 10 Day Avg. Volume: 1,132,446
• 30 Day Avg. Volume: 1,180,794
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 8.85
• Enterprise Value/Ebitda: 7.66
• 1Y Price Target: $27.00
• Price Target Upside: 4.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $28.00 ▲(8.53% Upside)

Laureate Education's strong financial performance and positive earnings call sentiment are the primary drivers of its score. The technical analysis indicates bullish momentum, though overbought signals suggest caution. Valuation is reasonable, but the lack of a dividend yield is a minor drawback.

Positive Factors

Guidance

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

Market Position

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

Negative Factors

Currency Volatility

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

Laureate Education Business Overview & Revenue Model

Company Description

Laureate Education, Inc. is a global leader in higher education, providing innovative and accessible educational opportunities through a diverse portfolio of institutions and programs. The company operates in various sectors, including online and campus-based education, primarily focusing on degree programs in fields such as business, healthcare, and technology. With a commitment to quality education and student success, Laureate collaborates with universities and institutions worldwide to enhance learning experiences and expand access to higher education.

How the Company Makes Money

Laureate Education generates revenue primarily through tuition and fees charged to students enrolled in its degree programs across its institutions. The company operates on a revenue model that includes both online and campus-based courses, with a significant focus on online education which allows for scalability and a broader reach. Key revenue streams include undergraduate and graduate program enrollments, as well as continuing education and professional development courses. Additionally, Laureate may benefit from partnerships with universities and other educational institutions, enabling shared resources and joint programs that can enhance its offerings and attract more students. Furthermore, financial aid and student loans often play a crucial role in facilitating student enrollments, thereby contributing to Laureate's overall revenue.

Laureate Education Financial Statement Overview

Summary

Laureate Education demonstrates consistent revenue growth and healthy profit margins. The balance sheet is stable with moderate leverage and strong return on equity. However, the decline in free cash flow growth warrants attention.

Income Statement

Laureate Education has demonstrated consistent revenue growth over the years, with a TTM (Trailing-Twelve-Months) revenue growth rate of 1.63%. The company maintains healthy margins, with a gross profit margin of 27.23% and a net profit margin of 16.40% in the TTM period. EBIT and EBITDA margins are also strong at 24.97% and 31.46%, respectively. However, there was a slight decline in revenue from the previous annual period, indicating potential challenges in sustaining growth.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.43, indicating moderate leverage. Return on equity is robust at 26.68%, showcasing efficient use of equity to generate profits. The equity ratio stands at 51.65%, suggesting a solid equity base relative to total assets. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 13.35% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.53, and the free cash flow to net income ratio is 0.74, indicating adequate cash generation relative to net income. Despite the decline in free cash flow growth, the company maintains a reasonable cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.55B	1.57B	1.48B	1.24B	1.09B	1.02B
Gross Profit	422.72M	419.76M	394.51M	334.90M	272.20M	222.40M
EBITDA	488.38M	537.80M	378.30M	350.80M	54.02M	-126.23M
Net Income	254.65M	296.47M	107.59M	69.57M	-283.10M	-320.70M
Balance Sheet
Total Assets	2.04B	1.86B	2.13B	1.97B	2.21B	4.97B
Cash, Cash Equivalents and Short-Term Investments	135.35M	91.35M	89.39M	85.20M	324.80M	750.10M
Total Debt	448.98M	427.41M	582.70M	648.00M	569.00M	1.51B
Total Liabilities	983.16M	903.52M	1.18B	1.20B	1.07B	2.71B
Stockholders Equity	1.05B	959.55M	950.07M	774.40M	1.14B	2.26B
Cash Flow
Free Cash Flow	170.48M	160.85M	194.34M	125.40M	-206.20M	184.90M
Operating Cash Flow	230.30M	232.73M	250.78M	178.20M	-155.80M	259.50M
Investing Cash Flow	-49.36M	-57.55M	-51.92M	30.30M	2.04B	587.50M
Financing Cash Flow	-163.67M	-166.94M	-201.89M	-461.60M	-2.68B	-272.70M

Laureate Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 25.8 is above the 20-day moving average (MA) of 24.04, above the 50-day MA of 23.45, and above the 200-day MA of 20.52, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 77.40 is Neutral, 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
PRDO	78 Outperform	$2.07B	13.86	16.39%	1.64%	15.99%	13.25%
LOPE	77 Outperform	$5.51B	23.77	30.77%	―	6.52%	11.72%
LAUR	77 Outperform	$3.80B	15.22	25.81%	―	0.44%	35.19%
ATGE	72 Outperform	$4.61B	20.71	16.60%	―	12.85%	81.69%
UTI	72 Outperform	$1.39B	22.41	23.11%	―	14.56%	127.02%
STRA	71 Outperform	$1.86B	16.20	6.89%	3.08%	4.31%	-1.08%
Sector *	63 Neutral	$20.97B	14.56	-8.07%	3.14%	2.79%	-9.90%

Laureate Education Corporate Events

Laureate Education Reports Q2 2025 Financial Results

On July 31, 2025, Laureate Education announced its financial results for the second quarter and the first half of 2025, showing a 5% increase in revenue to $524.2 million for the quarter compared to the same period in 2024. Despite a decrease in net income due to foreign currency exchange losses, the company increased its full-year 2025 guidance following improved foreign currency rates and remains committed to its strategic priorities, including opening two new campuses in September.

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 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.