Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: 1.88%
• Average Volume (3M): 653.33K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.63
• 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: 449,336
• 30 Day Avg. Volume: 653,330
• 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: 0.91
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 2.97
• Enterprise Value/Ebitda: 7.54
• 1Y Price Target: $42.00
• Price Target Upside: 31.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $33.00 ▲(3.19% Upside)

The score is driven primarily by strong financial performance (high margins, low leverage) and a positive earnings outlook with strong growth and guidance. Valuation is also supportive with a modest P/E and dividend, while technical signals remain the main headwind due to a weaker trend versus key moving averages and negative MACD.

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 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 University. It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform. As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.

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: Positive
• Last Price: 31.98
• 50DMA: Positive
• 100DMA: Negative
• 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 31.98 is above the 20-day moving average (MA) of 30.10, above the 50-day MA of 29.75, and above the 200-day MA of 30.79, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 68.17 is Neutral, neither overbought nor oversold. The STOCH value of 92.75 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
ATGE	79 Outperform	$4.13B	17.42	17.38%	―	12.24%	52.97%
STRA	77 Outperform	$1.96B	17.33	6.76%	2.99%	3.74%	-8.40%
PRDO	76 Outperform	$2.07B	13.74	16.14%	1.88%	24.23%	17.56%
LOPE	74 Outperform	$4.93B	23.89	27.77%	―	7.05%	-2.63%
APEI	68 Neutral	$729.01M	31.00	11.20%	―	6.75%	141.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	58 Neutral	$787.75M	55.10	7.94%	―	16.90%	41.11%

Perdoceo Education Corporate Events

Perdoceo Education Reaffirms 2026 Operating Income Outlook

On January 5, 2026, Perdoceo Education Corporation reaffirmed its full-year 2026 adjusted operating income outlook of $234 million to $236 million, maintaining previously issued guidance and signaling confidence in its operational performance and financial trajectory. On January 2, 2026, the company’s board approved a new common stock repurchase program authorizing up to $100 million in buybacks through June 30, 2027, replacing a prior $75 million program under which Perdoceo had already repurchased approximately 2.5 million shares for $74.8 million, highlighting ongoing capital returns to shareholders and flexible deployment of excess cash depending on market conditions and alternative investment opportunities.

The most recent analyst rating on (PRDO) stock is a Buy with a $31.00 price target. To see the full list of analyst forecasts on Perdoceo Education stock, see the PRDO Stock Forecast page.