Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: 1.88%
• Average Volume (3M): 425.80K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.64
• 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): 0.54
• Shares Outstanding: 64,322,480
• 10 Day Avg. Volume: 530,429
• 30 Day Avg. Volume: 425,801
• PEG Ratio: 1.22
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 8.77
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 5.78
• 1Y Price Target: $42.00
• Price Target Upside: 27.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $36.00 ▲(9.62% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

PRDO scores well mainly due to strong financial performance (high profitability, strong cash generation, and low leverage) and a constructive earnings outlook with continued shareholder returns. Valuation is reasonable, while technical indicators are largely neutral and do not add significant momentum to the score.

Positive Factors

Cash Generation

Consistently strong operating cash flow relative to net income indicates high earnings quality and reliable internal funding. This durable cash conversion supports reinvestment, acquisitions, dividends and buybacks without heavy external financing, reducing long-term financing risk.

Balance Sheet Strength

Very low leverage and a growing capital base give the company flexibility to fund growth, weather enrollment cycles, and pursue acquisitions. A strong balance sheet lowers interest exposure and preserves strategic optionality over multiple quarters to invest in programs or return cash to shareholders.

Sustained Profitability

High and consistent margins reflect an efficient, scalable education delivery model (notably online programs) with pricing power and cost control. Durable profitability supports cash flows, funds capital returns, and cushions the business against cyclical enrollment variability.

Negative Factors

Modest Revenue Growth

Top-line growth is modest and uneven, limiting long-term scalability. Reliance on small percentage increases and acquisitions to drive revenue means organic expansion may be constrained, which could pressure longer-term margin expansion and reduce room for multiple drivers of sustainable growth.

Free Cash Flow Volatility

Periodic swings in free cash flow introduce uncertainty into capital allocation planning. Even with strong average conversion, volatility can constrain consistent buybacks, investment pacing, or cushion for downside periods, making forward planning and investor returns more sensitive to operational timing.

Reporting/Data Inconsistencies

Gaps or inconsistencies in reported margin items impair visibility into underlying profitability drivers. Reduced transparency complicates trend analysis, forecasting, and investor confidence, increasing the risk that management actions or margin shifts could be misread until clean, restated data is provided.

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

Strong overall fundamentals driven by high profitability, excellent cash conversion (operating cash flow consistently above net income), and a conservatively financed balance sheet with low leverage. Offsets include modest/uneven revenue growth and some free-cash-flow growth volatility, plus a noted 2025 reporting inconsistency for gross profit/EBIT margin that reduces transparency.

Income Statement

Revenue has been broadly stable with a return to growth in 2025 (up ~4.3% after a decline in 2024), suggesting demand resilience but not a strong multi-year expansion trend. Profitability is a clear strength: net margins remain strong (~14%–22% historically; ~18.9% in 2025) and EBITDA margins are consistently high (~22%–32%). A key weakness is data quality/inconsistency in 2025 reported gross profit and EBIT margin (shown as 0), which limits confidence in the full margin bridge for that year despite solid EBIT/EBITDA and net income levels.

Balance Sheet

The balance sheet looks conservatively financed with low leverage across the period (debt-to-equity generally low and ~0.06 in 2025), providing flexibility and lowering financial risk. Equity and assets have grown meaningfully over time, supporting a stronger capital base. Returns on equity are consistently healthy (~13%–22%, ~16.4% in 2025), indicating effective use of shareholder capital. The main watch item is the noticeable increase in total debt in 2024–2025 versus 2023, though leverage still remains modest.

Cash Flow

Cash generation is a standout: operating cash flow comfortably exceeds net income in most years (about 1.0x–1.7x; ~1.63x in 2025), indicating high earnings quality and strong cash conversion. Free cash flow tracks net income closely (roughly ~0.91x–0.97x; ~0.96x in 2025), and 2025 shows strong free-cash-flow growth (~11.2%) on a higher cash base. The primary weakness is volatility in free cash flow growth (declines in 2022–2023), suggesting periodic swings in cash generation even though overall coverage remains solid.

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	237.63M	216.70M	209.41M	154.40M	166.75M
Net Income	159.91M	147.59M	147.65M	95.87M	109.64M
Balance Sheet
Total Assets	1.25B	1.24B	1.01B	957.37M	847.43M
Cash, Cash Equivalents and Short-Term Investments	1.27B	568.92M	603.14M	508.72M	494.19M
Total Debt	61.34M	131.54M	27.05M	33.84M	44.95M
Total Liabilities	275.31M	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

• Technical Analysis Sentiment: Positive
• Last Price: 32.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 32.84 is above the 20-day moving average (MA) of 31.63, above the 50-day MA of 30.93, and above the 200-day MA of 31.64, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 66.42 is Neutral, 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	79 Outperform	$2.05B	13.65	16.55%	1.88%	24.23%	17.56%
STRA	77 Outperform	$1.80B	15.93	6.76%	2.99%	3.74%	-8.40%
LOPE	73 Outperform	$4.69B	20.03	28.24%	―	7.05%	-2.63%
ATGE	71 Outperform	$3.37B	14.25	17.92%	―	12.24%	52.97%
APEI	68 Neutral	$800.26M	33.13	11.20%	―	6.75%	141.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	58 Neutral	$943.65M	68.68	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.