Grand Canyon Education (LOPE) AI Stock Analysis

• Market Cap: $4.83B
• Dividend Yield: N/A
• Average Volume (3M): 208.38K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.87
• Revenue Growth: 6.31%
• EPS Growth: 11.24%
• Country: US
• Employees: 4,092
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Education & Training Services
• EPS (TTM): 2.57
• Shares Outstanding: 28,374,510
• 10 Day Avg. Volume: 195,118
• 30 Day Avg. Volume: 208,381
• PEG Ratio: 7.47
• Price to Book (P/B): 6.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.67
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 7.18
• Enterprise Value/Ebitda: 3.78
• 1Y Price Target: $213.33
• Price Target Upside: 25.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $208.00 ▲(22.22%Upside)

Grand Canyon Education's strong financial performance and positive earnings call outlook are the primary drivers of its overall score. While technical indicators suggest short-term bearish momentum, the company's robust growth, profitability, and strategic program expansions provide a solid foundation for future success. The moderate valuation and absence of a dividend yield slightly temper the overall attractiveness.

Positive Factors

Earnings

LOPE delivered a solid adjusted EPS beat to consensus and guidance.

Enrollment Trends

1Q25 new enrollment trends were better than expected with GCU Online up low teens and Hybrid up low mid-teens.

Stock Valuation

Stock is trading at a discount to its Ed Tech peer group, suggesting potential for price appreciation.

Negative Factors

Revenue Guidance

Initial 2025 revenue guidance is slightly below consensus expectations.

Grand Canyon Education Business Overview & Revenue Model

Company Description

Grand Canyon Education, Inc. (LOPE) is an educational services company primarily focused on providing academic and operational support services to institutions of higher education. The company operates in the education services sector, offering a wide range of services that include curriculum development, infrastructure management, marketing, and recruitment. Its core service is to support universities and colleges in enhancing their educational offerings and operational efficiency, allowing them to focus on delivering quality education to their students.

How the Company Makes Money

Grand Canyon Education generates revenue by providing comprehensive educational services to partner institutions. The company's primary revenue stream comes from offering a bundle of support services, such as curriculum development, faculty recruitment, student enrollment, and retention strategies. It also manages online program platforms and provides technology solutions that facilitate online learning and campus management. Significant partnerships with universities enable Grand Canyon Education to expand its reach and enhance its service offerings, contributing significantly to its earnings.

Grand Canyon Education Financial Statement Overview

Summary

Grand Canyon Education presents a well-rounded financial performance with robust growth in revenue, strong profitability, solid balance sheet strength, and healthy cash flow generation. The company is well-positioned for continued success with conservative leverage, efficient operations, and strong cash flow, providing a solid foundation for future growth and stability.

Income Statement

Grand Canyon Education shows a solid performance with a consistent increase in revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is robust at 63.51%, indicating efficient cost management. The net profit margin is healthy at 21.94%, and the EBIT margin stands at 26.63%, showcasing strong operational efficiency. Revenue growth rate from 2023 to TTM is 9.06%, reflecting positive growth momentum. Overall, the company displays strong profitability and growth potential.

Balance Sheet

The balance sheet of Grand Canyon Education is strong with a low debt-to-equity ratio of 0.13, indicating a conservative leverage position. The return on equity (ROE) is impressive at 29.44%, highlighting efficient use of equity capital. The equity ratio is substantial at 75.68%, reflecting financial stability and a strong equity base. This solid balance sheet provides a cushion against potential economic fluctuations.

Cash Flow

Grand Canyon Education demonstrates strong cash flow management. The free cash flow growth rate from 2023 to TTM is 18.69%, indicating healthy cash generation. The operating cash flow to net income ratio is 1.19, and the free cash flow to net income ratio is 1.02, both suggesting efficient conversion of income into cash. These metrics reflect a strong liquidity position and the ability to support future investments or return capital to shareholders.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	960.90M	911.31M	896.56M	844.10M
Gross Profit	544.43M	503.71M	487.50M	515.31M	493.55M
EBITDA	327.87M	291.68M	271.30M	364.75M	307.09M
Net Income	226.23M	204.99M	184.68M	260.34M	257.20M
Balance Sheet
Total Assets	1.02B	930.46M	832.75M	1.22B	1.84B
Cash, Cash Equivalents and Short-Term Investments	324.62M	244.51M	181.70M	600.94M	256.61M
Total Debt	108.52M	99.28M	77.44M	61.18M	171.78M
Total Liabilities	234.57M	212.45M	195.13M	177.70M	270.25M
Stockholders Equity	783.85M	718.01M	637.62M	1.05B	1.57B
Cash Flow
Free Cash Flow	252.71M	198.23M	185.19M	283.73M	278.88M
Operating Cash Flow	289.96M	243.66M	220.82M	313.12M	308.82M
Investing Cash Flow	61.37M	-80.47M	-97.14M	950.98M	-19.35M
Financing Cash Flow	-173.18M	-137.12M	-604.21M	-908.93M	-166.28M

Grand Canyon Education Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 170.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOPE, the sentiment is Negative. The current price of 170.19 is below the 20-day moving average (MA) of 176.76, below the 50-day MA of 185.89, and below the 200-day MA of 171.32, indicating a bearish trend. The MACD of -4.81 indicates Positive momentum. The RSI at 29.85 is Positive, neither overbought nor oversold. The STOCH value of 29.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LOPE.

Grand Canyon Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	78 Outperform	$4.83B	21.38	29.85%	―	6.31%	11.24%
LRN	77 Outperform	$5.69B	20.41	23.76%	―	14.90%	60.56%
ATGE	76 Outperform	$4.12B	19.01	16.62%	―	13.10%	127.72%
STRA	69 Neutral	$1.88B	16.72	6.86%	3.09%	5.72%	11.02%
GHC	69 Neutral	$3.94B	6.39	14.87%	0.79%	5.91%	137.49%
LAUR	68 Neutral	$3.42B	12.26	31.14%	―	1.26%	140.30%
Sector *	53 Neutral	C$4.45B	4.20	-20.57%	3.55%	8.21%	2.02%

Grand Canyon Education Corporate Events

Grand Canyon Education Holds 2025 Annual Stockholders Meeting

On June 10, 2025, Grand Canyon Education, Inc. held its 2025 Annual Meeting of Stockholders, where 90.7% of the outstanding shares voted. During the meeting, stockholders elected directors, approved executive compensation, and ratified KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025. These decisions are likely to impact the company’s governance and financial oversight, potentially influencing its strategic direction and stakeholder confidence.

The most recent analyst rating on (LOPE) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Grand Canyon Education stock, see the LOPE Stock Forecast page.