Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: 1.82%
• Average Volume (3M): 641.93K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.37
• Revenue Growth: 6.35%
• EPS Growth: 0.35%
• Country: US
• Employees: 5,690
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Education & Training Services
• EPS (TTM): 0.65
• Shares Outstanding: 65,536,260
• 10 Day Avg. Volume: 706,827
• 30 Day Avg. Volume: 641,927
• PEG Ratio: 4.08
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.50
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: 2.44
• 1Y Price Target: $40.00
• Price Target Upside: 40.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $32.00 ▲(12.16%Upside)

Perdoceo Education's strong financial performance, positive earnings call, and reasonable valuation are the main strengths contributing to the score. However, technical analysis indicates bearish trends, which weigh down the overall score. The company's projected growth potential, driven by acquisitions and enrollment growth, adds to its attractiveness, despite current market sentiment challenges.

Positive Factors

Financial Performance

Recent results top expectations with revenues and adjusted operating income exceeding estimates and management guidance.

Growth Prospects

Management expects organic revenue and total enrollment to increase in each of the remaining quarters of 2025.

Stock Valuation

Perdoceo’s shares trade at a significant discount to its peer group, with a raised price target of $38, indicating approximately 50% upside.

Negative Factors

Peer Comparison

Perdoceo's shares trade at a significant discount to its postsecondary education peer group average, representing a potential upside.

Perdoceo Education Business Overview & Revenue Model

Company Description

Perdoceo Education Corporation (PRDO) is a provider of postsecondary education primarily in the United States. The company operates through two main institutions: Colorado Technical University (CTU) and the American InterContinental University (AIU). These institutions offer a variety of undergraduate, graduate, and doctoral degree programs, both online and on campus, catering to a diverse student body. The company's mission is to provide accessible, flexible, and career-focused education that meets the needs of adult learners and professionals seeking to advance their careers.

How the Company Makes Money

Perdoceo Education Corporation generates revenue primarily through tuition fees paid by students enrolled in its degree programs. The company offers financial aid options to eligible students, including federal financial aid programs, which constitute a significant portion of its revenue. Additionally, Perdoceo may receive revenue from corporate partnerships and alliances that provide tailored educational programs for employees. The company's focus on online education allows it to reach a broader audience and maintain a scalable cost structure, enhancing its revenue potential. It also invests in marketing and recruitment efforts to attract and retain students, further driving its financial performance.

Perdoceo Education Financial Statement Overview

Summary

Perdoceo Education shows strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is solid, with low leverage and strong equity ratios. However, there is room for improving liquidity management.

Income Statement

Perdoceo Education has demonstrated strong revenue and profit growth over the years, with a notable increase in revenue from $681 million to $726 million in the TTM period. The gross profit margin remains robust at 87.5%, while the net profit margin improved to 20.9% in the TTM period. EBIT and EBITDA margins are also healthy, indicating efficient cost management and profitability. Such positive trends indicate a strong financial performance in the education sector, which often faces fluctuating demand.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.07, reflecting minimal leverage and financial risk. Return on equity is impressive at 15.6%, showcasing effective utilization of shareholder funds. The equity ratio is strong at 76.5%, indicating a solid financial foundation with a high proportion of assets financed by equity. These factors contribute to the company's financial stability, although there is room for improving liquidity management.

Cash Flow

Perdoceo Education's cash flow demonstrates stability and growth, evidenced by a 6.4% increase in free cash flow in the TTM period. The operating cash flow to net income ratio is 1.13, indicating that operating cash flows are sufficient to cover net income. Furthermore, the free cash flow to net income ratio is 1.10, which highlights the company's ability to generate cash beyond net earnings. Such metrics indicate strong cash generation and healthy financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	681.26M	710.00M	695.21M	693.03M	687.31M
Gross Profit	560.40M	579.68M	578.49M	584.29M	575.55M
EBITDA	215.47M	209.41M	152.37M	165.78M	158.33M
Net Income	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet
Total Assets	1.24B	1.01B	957.37M	847.43M	721.52M
Cash, Cash Equivalents and Short-Term Investments	568.92M	603.14M	508.72M	494.19M	406.36M
Total Debt	131.54M	27.05M	33.84M	44.95M	53.19M
Total Liabilities	277.50M	165.90M	231.52M	197.32M	165.61M
Stockholders Equity	959.54M	841.42M	725.85M	650.11M	555.91M
Cash Flow
Free Cash Flow	156.97M	105.61M	135.57M	180.66M	170.19M
Operating Cash Flow	161.59M	112.03M	148.19M	191.12M	179.96M
Investing Cash Flow	-107.78M	-88.51M	-326.75M	54.32M	-165.91M
Financing Cash Flow	-41.08M	-23.38M	-27.73M	-29.95M	-13.05M

Perdoceo Education Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Negative. The current price of 28.53 is below the 20-day moving average (MA) of 30.32, below the 50-day MA of 31.41, and above the 200-day MA of 27.08, indicating a neutral trend. The MACD of -0.78 indicates Positive momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 22.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRDO.

Perdoceo Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	76 Outperform	$4.12B	19.01	16.62%	―	13.10%	127.72%
PRDO	71 Outperform	$1.88B	12.72	16.54%	1.82%	6.35%	0.35%
UTI	70 Outperform	$1.72B	30.41	21.81%	―	14.69%	188.00%
STRA	69 Neutral	$1.88B	16.72	6.86%	3.09%	5.72%	11.02%
APEI	65 Neutral	$538.66M	29.65	8.18%	―	4.86%	―
LINC	64 Neutral	$708.94M	57.97	7.04%	―	15.24%	-54.31%
Sector *	63 Neutral	$17.10B	10.79	-8.01%	2.94%	1.62%	-25.73%

Perdoceo Education Corporate Events

Perdoceo Education Holds Annual Stockholders Meeting

On May 22, 2025, Perdoceo Education held its annual meeting of stockholders where several key decisions were made. The stockholders elected eight directors to the Board, approved executive compensation on a nonbinding advisory basis, and ratified Grant Thornton LLP as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (PRDO) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Perdoceo Education stock, see the PRDO Stock Forecast page.