Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: 1.91%
• Average Volume (3M): 856.41K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.61
• Revenue Growth: 24.23%
• EPS Growth: 17.56%
• Country: US
• Employees: 5,690
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.60
• Shares Outstanding: 64,322,480
• 10 Day Avg. Volume: 900,432
• 30 Day Avg. Volume: 856,410
• PEG Ratio: 8.71
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 11.07
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 7.54
• 1Y Price Target: $42.00
• Price Target Upside: 43.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $31.00 ▲(5.73% Upside)

Perdoceo Education's strong financial performance and positive earnings call outlook are key strengths, driving a favorable stock score. However, bearish technical indicators and a slight decline in free cash flow growth present challenges. The stock's valuation is reasonable, with a modest dividend yield adding appeal.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Perdoceo's educational offerings and successful strategic initiatives, enhancing long-term financial stability.

Enrollment Growth

Sustained enrollment growth, particularly at CTU, suggests effective program delivery and marketing strategies, supporting future revenue and market position.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial flexibility and resilience, enabling strategic investments and weathering economic fluctuations.

Negative Factors

Decline in Free Cash Flow Growth

Declining free cash flow growth may limit the company's ability to reinvest in growth initiatives or return capital to shareholders, impacting long-term financial health.

Decline in AIUS Enrollments

A decline in enrollments at AIUS could indicate competitive pressures or market saturation, potentially affecting future revenue streams and growth prospects.

Slight Decrease in Gross Profit Margin

A decrease in gross profit margin may signal rising costs or pricing pressures, which could erode profitability if not addressed through cost management or pricing strategies.

Perdoceo Education Business Overview & Revenue Model

Company Description

Perdoceo Education Corporation (PRDO) is a leading provider of post-secondary education and training services in the United States. The company operates through various educational institutions, including online and campus-based programs, catering primarily to adult learners and non-traditional students. Perdoceo's core offerings include degree programs in fields such as business, healthcare, technology, and education, delivered through its subsidiaries such as Colorado Technical University and American InterContinental University. The company is dedicated to providing high-quality education and career-oriented training, emphasizing learner support and accessibility.

How the Company Makes Money

Perdoceo Education generates revenue primarily through tuition and fees charged to students enrolled in its educational programs. The company benefits from a robust enrollment model, with a significant portion of its revenue derived from online courses, which attract a diverse student population seeking flexible learning options. Additionally, Perdoceo receives federal financial aid, including Pell Grants and student loans, which contribute to its income as eligible students utilize these funds to pay for their education. The company may also engage in partnerships with employers and organizations to provide tailored training programs, further enhancing its revenue streams. Ongoing efforts to expand program offerings and improve student outcomes are key factors contributing to Perdoceo's financial performance.

Perdoceo Education Financial Statement Overview

Summary

Perdoceo Education demonstrates strong financial health with robust profitability and stable balance sheet metrics. The company is on a positive growth trajectory with efficient operations and prudent financial management. However, the decline in free cash flow growth and slight decrease in gross profit margin should be monitored.

Income Statement

Perdoceo Education shows a strong income statement with a consistent revenue growth rate of 5.47% in TTM, indicating a positive trajectory. The gross profit margin is robust at 78.17%, and the net profit margin is healthy at 19.24%. The EBIT and EBITDA margins are solid, reflecting efficient operations. However, the slight decline in gross profit margin from the previous year suggests a need to monitor cost management.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.065, indicating prudent financial leverage. The return on equity is strong at 15.95%, showcasing effective use of equity to generate profits. The equity ratio of 76.75% highlights a strong equity base, providing financial stability. Overall, the balance sheet reflects a solid financial position with manageable debt levels.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -5.18% in TTM, which is a concern. However, the operating cash flow to net income ratio of 1.23 indicates good cash generation relative to net income. The free cash flow to net income ratio of 0.96 suggests efficient cash conversion. While cash flow metrics are generally positive, the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	810.89M	681.26M	710.00M	695.21M	693.03M	687.31M
Gross Profit	633.85M	560.40M	579.68M	578.49M	584.29M	575.55M
EBITDA	249.47M	216.70M	209.41M	154.40M	166.75M	161.78M
Net Income	156.03M	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet
Total Assets	1.30B	1.24B	1.01B	957.37M	847.43M	721.52M
Cash, Cash Equivalents and Short-Term Investments	647.31M	568.92M	603.14M	508.72M	494.19M	406.36M
Total Debt	121.49M	131.54M	27.05M	33.84M	44.95M	53.19M
Total Liabilities	301.53M	277.50M	165.90M	231.52M	197.32M	165.61M
Stockholders Equity	997.85M	959.54M	841.42M	725.85M	650.11M	555.91M
Cash Flow
Free Cash Flow	194.76M	156.97M	105.61M	135.57M	180.66M	170.19M
Operating Cash Flow	202.73M	161.59M	112.03M	148.19M	191.12M	179.96M
Investing Cash Flow	-144.87M	-107.78M	-88.51M	-326.75M	54.32M	-165.91M
Financing Cash Flow	-115.91M	-41.08M	-23.38M	-27.73M	-29.95M	-13.05M

Perdoceo Education Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Neutral. The current price of 29.32 is above the 20-day moving average (MA) of 28.47, below the 50-day MA of 31.14, and below the 200-day MA of 30.37, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 49.07 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRDO.

Perdoceo Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	79 Outperform	$3.65B	15.10	17.38%	―	12.24%	52.97%
LOPE	74 Outperform	$4.64B	22.39	27.77%	―	7.05%	-2.63%
STRA	73 Outperform	$1.89B	16.73	6.76%	2.98%	3.74%	-8.40%
PRDO	72 Outperform	$1.89B	12.53	16.14%	1.91%	24.23%	17.56%
APEI	68 Neutral	$693.92M	29.29	11.20%	―	6.75%	141.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	53 Neutral	$753.91M	52.63	7.94%	―	16.90%	41.11%

Perdoceo Education Corporate Events

Perdoceo Education Corp’s Earnings Call Highlights Growth

Perdoceo Education Corporation’s recent earnings call conveyed a positive sentiment, underscoring strong financial performance and significant enrollment growth across its institutions. The company expressed optimism about future growth, bolstered by a favorable regulatory environment. However, there were concerns regarding enrollment variability at the AIU System and potential tax implications.

Perdoceo Education Reports Strong Q2 2025 Results

Perdoceo Education Corporation is a provider of postsecondary education programs, operating in the higher education sector with a focus on online, campus-based, and hybrid learning models through its institutions such as Colorado Technical University, American InterContinental University System, and University of St. Augustine for Health Sciences.