Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 1.63%
• Average Volume (3M): 756.99K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.46
• Revenue Growth: 15.99%
• EPS Growth: 13.25%
• Country: US
• Employees: 5,690
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Education & Training Services
• EPS (TTM): 0.62
• Shares Outstanding: 64,953,380
• 10 Day Avg. Volume: 1,013,109
• 30 Day Avg. Volume: 756,992
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: $36.50
• Price Target Upside: 14.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $33.00 ▲(3.32% Upside)

Perdoceo Education's strong financial performance and positive earnings call are the most significant factors contributing to its score. The company's robust growth, efficient cost management, and shareholder returns are key strengths. Technical analysis indicates a neutral trend, and the valuation suggests the stock is fairly valued. Concerns about enrollment variability and tax implications are minor risks.

Positive Factors

Acquisition Impact

The acquisition of University of St. Augustine for Health Sciences is accretive to the company's performance.

Financial Performance

Perdoceo Education reported financial results that topped expectations and raised guidance.

Growth Prospects

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

Shareholder Value

A new $75 million share repurchase was announced.

Negative Factors

Market Perception

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

Valuation Concerns

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

Perdoceo Education Business Overview & Revenue Model

Company Description

Perdoceo Education Corporation (PRDO) is a leading provider of post-secondary education, primarily focused on delivering online and campus-based degree programs through its various institutions. The company operates through several subsidiaries, including Colorado Technical University and American InterContinental University, offering a range of programs in fields such as business, healthcare, technology, and the arts. Perdoceo is dedicated to providing accessible and flexible educational opportunities to a diverse student population, leveraging technology to enhance the learning experience.

How the Company Makes Money

Perdoceo Education generates revenue primarily through tuition and fees paid by students enrolled in its degree programs. The company benefits from multiple revenue streams, including traditional tuition for on-campus and online courses, as well as ancillary fees related to course materials and student services. Additionally, Perdoceo may receive funding through federal and state financial aid programs, which can significantly contribute to its revenue. Partnerships with various educational organizations and employers can also enhance its offerings and attract more students, further solidifying its financial performance. The combination of a growing enrollment base, effective marketing strategies, and a focus on student retention are key factors contributing to the company's earnings.

Perdoceo Education Financial Statement Overview

Summary

Perdoceo Education exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The company's balance sheet is solid with low leverage and strong equity ratios, providing financial stability. While liquidity management could improve, the company's financial trajectory is positive.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	726.00M	681.26M	710.00M	695.21M	693.03M	687.31M
Gross Profit	586.46M	560.40M	579.68M	578.49M	584.29M	575.55M
EBITDA	220.84M	215.47M	209.41M	152.37M	165.78M	158.33M
Net Income	151.84M	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet
Total Assets	1.27B	1.24B	1.01B	957.37M	847.43M	721.52M
Cash, Cash Equivalents and Short-Term Investments	590.58M	568.92M	603.14M	508.72M	494.19M	406.36M
Total Debt	70.98M	131.54M	27.05M	33.84M	44.95M	53.19M
Total Liabilities	298.29M	277.50M	165.90M	231.52M	197.32M	165.61M
Stockholders Equity	970.25M	959.54M	841.42M	725.85M	650.11M	555.91M
Cash Flow
Free Cash Flow	167.06M	156.97M	105.61M	135.57M	180.66M	170.19M
Operating Cash Flow	172.23M	161.59M	112.03M	148.19M	191.12M	179.96M
Investing Cash Flow	-75.80M	-107.78M	-88.51M	-326.75M	54.32M	-165.91M
Financing Cash Flow	-69.61M	-41.08M	-23.38M	-27.73M	-29.95M	-13.05M

Perdoceo Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 31.94 is above the 20-day moving average (MA) of 29.74, above the 50-day MA of 30.84, and above the 200-day MA of 27.76, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 93.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRDO.

Perdoceo Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	78 Outperform	$2.08B	13.87	16.39%	1.63%	15.99%	13.25%
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%
APEI	69 Neutral	$516.36M	27.09	10.20%	―	5.50%	338.59%
Sector *	63 Neutral	$20.97B	14.56	-8.07%	3.13%	2.79%	-9.84%
LINC	58 Neutral	$606.44M	41.79	8.27%	―	14.53%	75.66%

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.