Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 1.64%
• Average Volume (3M): 603.37K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.36
• Revenue Growth: 6.35%
• EPS Growth: 0.35%
• Country: US
• Employees: 5,690
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Education & Training Services
• EPS (TTM): 0.65
• Shares Outstanding: 65,536,260
• 10 Day Avg. Volume: 659,480
• 30 Day Avg. Volume: 603,371
• PEG Ratio: -0.97
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.97
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 2.12
• Enterprise Value/Ebitda: 1.58
• 1Y Price Target: $40.00
• Price Target Upside: 25.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ―

Perdoceo Education's strong financial performance, marked by consistent revenue and profit growth and robust cash flow, is the primary driver of its favorable stock score. Technical indicators support bullish momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock is fairly priced, with a modest dividend yield. Positive earnings guidance and strategic board appointments further enhance the company's outlook, despite some challenges in specific segments.

Positive Factors

Financial Performance

Recent results top expectations with revenues and adjusted operating income exceeding estimates and management guidance.

Investment Rating

Perdoceo is included on the Best Ideas List for 2025, with an OUTPERFORM investment rating.

Valuation

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

Negative Factors

Market Comparison

Perdoceo's shares trade at a significant discount to its peer group, indicating potential concerns about market perception.

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 Corporation generates revenue primarily through tuition fees paid by students enrolled in its degree programs. The company offers financial aid options to eligible students, including federal financial aid programs, which constitute a significant portion of its revenue. Additionally, Perdoceo may receive revenue from corporate partnerships and alliances that provide tailored educational programs for employees. The company's focus on online education allows it to reach a broader audience and maintain a scalable cost structure, enhancing its revenue potential. It also invests in marketing and recruitment efforts to attract and retain students, further driving its financial performance.

Perdoceo Education Financial Statement Overview

Summary

Perdoceo Education shows strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is solid, with low leverage and strong equity ratios, providing financial stability. While liquidity management could be improved, the company's financial trajectory appears 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
	EBIT
179.70M	174.25M	150.45M	129.64M	149.02M	142.93M
	EBITDA
220.84M	215.47M	209.41M	152.37M	165.78M	158.33M
	Net Income Common Stockholders
151.84M	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
590.58M	568.92M	603.14M	508.72M	494.19M	406.36M
	Total Assets
1.27B	1.24B	1.01B	957.37M	847.43M	721.52M
	Total Debt
127.64M	131.54M	27.05M	33.84M	44.95M	53.19M
	Net Debt
-4.42M	22.41M	-90.96M	-75.57M	-275.03M	-52.49M
	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: 31.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 31.88 is below the 20-day moving average (MA) of 32.16, above the 50-day MA of 28.91, and above the 200-day MA of 25.73, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 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
ATGE	80 Outperform	$4.28B	19.92	16.62%	―	13.10%	127.72%
UTI	78 Outperform	$1.78B	31.83	21.81%	―	14.69%	188.00%
PRDO	77 Outperform	$2.08B	14.05	16.54%	1.64%	6.35%	0.35%
STRA	73 Outperform	$2.00B	17.77	6.86%	2.89%	5.72%	11.02%
APEI	66 Neutral	$469.75M	27.09	8.18%	―	4.86%	―
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
LINC	60 Neutral	$683.35M	57.84	7.04%	―	15.24%	-54.31%

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.