Laureate Education (LAUR) AI Stock Analysis

• Market Cap: $5.05B
• Dividend Yield: N/A
• Average Volume (3M): 781.38K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.84
• 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: 887,139
• 30 Day Avg. Volume: 781,381
• 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: 1.06
• Enterprise Value/Revenue: 3.37
• Enterprise Value/Gross Profit: 12.60
• Enterprise Value/Ebitda: 11.28
• 1Y Price Target: $39.50
• Price Target Upside: 13.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $38.00 ▲(8.76% Upside)

Laureate Education's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust revenue and EBITDA growth. Technical analysis and valuation present mixed signals, with short-term technical weakness and moderate valuation. The absence of a dividend yield may deter some investors.

Positive Factors

Strong balance sheet and low leverage

Very low leverage and a high equity ratio provide durable financial flexibility. With a 20% ROE, Laureate can fund campus expansion, invest in online capabilities, or weather enrollment cycles without materially increasing financial risk, supporting long-term stability.

Consistent revenue and healthy margins

Steady top-line growth paired with robust EBITDA and net margins indicates the business model generates sustainable operating profitability. These margins support reinvestment in programs and technology and imply durable cash generation capacity under normal academic cycles.

Enrollment growth, campus expansion and buyback

Rising enrollments and new campuses in Mexico and Peru show structural demand and geographic expansion. A $150M increase in repurchases signals management confidence and disciplined capital allocation, reinforcing long-term shareholder alignment and optionality.

Negative Factors

Declining free cash flow growth

An 8.3% decline in FCF growth suggests weakening cash conversion versus prior periods. If this trend persists, it could constrain capital spending, program investment, or buybacks, reducing financial flexibility despite strong accounting profits and a healthy balance sheet.

Negative price mix from online growth

A structural shift toward lower-priced fully online programs risks lowering average revenue per student and compressing margins unless offset by scale, cost reductions, or higher lifetime value. This mix change can pressure long-term unit economics.

Macroeconomic sluggishness in Mexico

Material exposure to Mexico subjects Laureate to persistent regional macro risks. Prolonged economic sluggishness can reduce enrollment demand, limit pricing power, and delay campus returns on investment, weighing on near- and medium-term revenue growth.

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 presents a strong financial profile with consistent revenue growth and solid profitability margins. The balance sheet is robust, with low leverage and high return on equity, reflecting financial stability. However, the decline in free cash flow growth indicates potential challenges in cash generation, which should be monitored closely.

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: 34.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 34.94 is above the 20-day moving average (MA) of 34.90, above the 50-day MA of 33.17, and above the 200-day MA of 27.49, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 31.32 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
STRA	77 Outperform	$2.00B	17.69	6.76%	2.99%	3.74%	-8.40%
PRDO	76 Outperform	$2.06B	13.69	16.14%	1.88%	24.23%	17.56%
GHC	75 Outperform	$5.09B	6.97	17.20%	0.65%	4.13%	228.37%
LOPE	74 Outperform	$4.86B	23.63	27.77%	―	7.05%	-2.63%
LAUR	73 Outperform	$5.05B	25.57	20.15%	―	2.01%	-13.82%
ATGE	73 Outperform	$3.57B	15.57	17.92%	―	12.24%	52.97%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%