Perdoceo Education (PRDO)
NASDAQ:PRDO
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Perdoceo Education
(NASDAQ:PRDO)
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Rating:85Outperform
Price Target:
$39.00
▲(7.38% Upside)
Action:ReiteratedDate:04/01/26
PRDO scores highly due to strong financial quality (profitability, cash generation, low leverage) and upbeat forward guidance with continued enrollment momentum and shareholder-friendly capital returns. Technicals also support the score with a clear uptrend, while valuation remains favorable given the low P/E and dividend yield.
Positive Factors
Strong cash generation & liquidity
Operating cash flow substantially exceeded net income and free cash flow closely tracked earnings, producing large cash balances. This durable cash generation supports ongoing investments, dividends, and buybacks while providing flexibility to fund growth or weather shocks over the next 2–6 months.
Negative Factors
Modest and uneven multi-year revenue trend
Despite recent upticks, multi-year top-line expansion is inconsistent, limiting long-term predictability. Uneven revenue trends can constrain sustainable margin improvements and make forecasting investment returns harder, increasing reliance on operational fixes or acquisitions to drive growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & liquidity
Operating cash flow substantially exceeded net income and free cash flow closely tracked earnings, producing large cash balances. This durable cash generation supports ongoing investments, dividends, and buybacks while providing flexibility to fund growth or weather shocks over the next 2–6 months.
Read all positive factors
Perdoceo Education (PRDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.06B
Dividend Yield1.88%
Average Volume (3M)691.80K
Price to Earnings (P/E)11.9
Beta (1Y)0.51
Revenue Growth24.20%
EPS Growth9.66%
CountryUS
Employees5,690
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.54
Shares Outstanding62,701,405
10 Day Avg. Volume543,835
30 Day Avg. Volume691,802
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)1.95
Price to Sales (P/S)2.25
P/FCF Ratio8.77
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue2.47
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda8.05
Forecast
1Y Price Target
$42.00Price Target Upside15.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.58
Revenue Forecast (FY)$865.03M
Perdoceo Education Business Overview & Revenue Model
Company Description
Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. The company operates in two segments, Colorado Technical University and American InterContinental Uni...
How the Company Makes Money
Perdoceo primarily makes money by charging tuition and fees to students enrolled in its degree programs, delivered largely through online instruction (and, where applicable, in-person components). Revenue is recognized from educational services pr...
Perdoceo Education Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed strong overall financial and operational momentum with significant revenue, cash flow and adjusted operating income growth, growing enrollments across the portfolio, accretive acquisition progress, and a shareholder-friendly capital allocation policy. Near-term headwinds cited were reinvestments and nonrecurring compensation expenses that pressured some segment operating results, reporting seasonality at AIU system and a temporary moderation of enrollment growth due to high graduate counts in 2026. On balance, the positives (robust top-line and adjusted profitability growth, improved cash generation, clear 2026 guidance upside and capital returns) materially outweigh the limited lowlights.Positive Updates
Strong Revenue Growth
Full year revenue increased 24.2% year-over-year to $846.1 million; fourth quarter revenue rose 20.0% to $211.6 million (from $176.4 million).
Negative Updates
CTU Fourth Quarter Operating Income Decline
CTU fourth quarter operating income decreased by $2.8 million to $39.2 million despite revenue increasing 2.5% to $114.0 million, reflecting reinvestments and nonrecurring compensation-related expenses.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Full year revenue increased 24.2% year-over-year to $846.1 million; fourth quarter revenue rose 20.0% to $211.6 million (from $176.4 million).
Read all positive updates
Company Guidance
Perdoceo guided to full‑year 2026 adjusted operating income of $250.0–$263.0 million (vs. $237.6M in 2025) and adjusted EPS of $2.97–$3.12 (vs. $2.61 in 2025; ~16% increase at the midpoint), with full‑year revenue and operating income expected to grow on continued organic enrollment growth (total enrollments were +7.3% at 12/31/25) and St. Augustine momentum (expected double‑digit adjusted operating income growth); Q1 2026 adjusted operating income is guided to $68–$70 million (vs. $63.5M prior year) and adjusted EPS $0.83–$0.85 (vs. $0.70), the company expects a 2026 effective tax rate of 23.5%–24.5%, capital expenditures of ~1.5% of revenue, continued investments in marketing/admissions/technology, no material regulatory impact on demand, a new $100M share repurchase authorization (after repurchasing 4.1M shares for $120.8M in 2025 at a $29.17 average), a quarterly dividend of $0.15/share, and ample liquidity (cash and equivalents of $643.5M at year‑end 2025).Perdoceo Education Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
90
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 846.10M | 681.26M | 710.00M | 695.21M | 693.03M |
| Gross Profit | 606.93M | 560.40M | 579.68M | 578.49M | 584.29M |
| EBITDA | 264.93M | 216.70M | 209.41M | 154.40M | 166.75M |
| Net Income | 159.91M | 147.59M | 147.65M | 95.87M | 109.64M |
Balance Sheet | |||||
| Total Assets | 1.27B | 1.24B | 1.01B | 957.37M | 847.43M |
| Cash, Cash Equivalents and Short-Term Investments | 643.49M | 568.92M | 603.14M | 508.72M | 494.19M |
| Total Debt | 105.09M | 131.54M | 27.05M | 33.84M | 44.95M |
| Total Liabilities | 299.80M | 277.50M | 165.90M | 231.52M | 197.32M |
| Stockholders Equity | 972.41M | 959.54M | 841.42M | 725.85M | 650.11M |
Cash Flow | |||||
| Free Cash Flow | 216.66M | 156.97M | 105.61M | 135.57M | 180.66M |
| Operating Cash Flow | 225.24M | 161.59M | 112.03M | 148.19M | 191.12M |
| Investing Cash Flow | -53.64M | -107.78M | -88.51M | -326.75M | 54.32M |
| Financing Cash Flow | -171.07M | -41.08M | -23.38M | -27.73M | -29.95M |
Perdoceo Education Technical Analysis
Positive
36.32
Price Trends
34.41
Positive
32.19
Positive
32.22
Positive
Market Momentum
0.24
Positive
55.48
Neutral
35.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Positive. The current price of 36.32 is below the 20-day moving average (MA) of 36.45, above the 50-day MA of 34.41, and above the 200-day MA of 32.22, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 35.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRDO.
Perdoceo Education Risk Analysis
Perdoceo Education disclosed 34 risk factors in its most recent earnings report. Perdoceo Education reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perdoceo Education Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $2.06B | 11.89 | 16.30% | 1.88% | 24.20% | 9.66% | |
77 Outperform | $1.72B | 13.67 | 7.85% | 2.99% | 3.02% | 20.69% | |
73 Outperform | $4.49B | 21.44 | 28.22% | ― | 7.07% | -0.27% | |
71 Outperform | $1.05B | 21.57 | 10.92% | ― | 3.89% | 147.39% | |
64 Neutral | $1.26B | 14.71 | 10.75% | ― | 17.76% | 100.25% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
PRDO
Perdoceo Education
33.82
9.06
36.60%
APEI
American Public Education
57.36
33.51
140.50%
LOPE
Grand Canyon Education
167.84
-10.05
-5.65%
LINC
Lincoln Edu
39.66
22.53
131.52%
STRA
Strategic Education
77.77
-2.06
-2.58%
Perdoceo Education Corporate Events
Business Operations and StrategyExecutive/Board Changes
Perdoceo Education Adopts 2026 Executive Annual Incentive Plan
Positive
Mar 13, 2026
On March 10, 2026, Perdoceo Education Corporation’s Compensation Committee approved its 2026 Annual Incentive Plan, maintaining a structure largely consistent with the prior year’s program. The plan continues to tie 80% of senior execu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.