Perdoceo Education Corporation (PRDO)
NASDAQ:PRDO
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Perdoceo Education
(NASDAQ:PRDO)
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Rating:82Outperform
Price Target:
$42.00
▲(15.64% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance (high profitability, low leverage, and excellent cash generation) and a constructive earnings outlook with raised/strong guidance and solid liquidity. Valuation further supports the profile with a low P/E and dividend. Technicals are positive on trend but moderated by mixed momentum (slightly negative MACD).
Positive Factors
Strong cash generation
Perdoceo converts a large share of earnings into cash, with free cash flow closely tracking net income (~0.96). Durable cash conversion supports reinvestment in student experience, consistent dividends/repurchases, and gives the company flexibility to fund growth or weather enrollment cycles without relying on external financing.
Negative Factors
Uneven revenue and margin pressure
Revenue growth has been inconsistent and latest gross margin declined versus prior annual levels, indicating mix shifts or rising direct costs. Over time, uneven top-line trends and margin compression could limit sustainable operating leverage and make earnings more sensitive to enrollment volatility or price competition.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Perdoceo converts a large share of earnings into cash, with free cash flow closely tracking net income (~0.96). Durable cash conversion supports reinvestment in student experience, consistent dividends/repurchases, and gives the company flexibility to fund growth or weather enrollment cycles without relying on external financing.
Read all positive factors
Perdoceo Education (PRDO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.17B
Dividend Yield1.88%
Average Volume (3M)581.45K
Price to Earnings (P/E)10.8
Beta (1Y)0.51
Revenue Growth17.75%
EPS Growth15.21%
CountryUS
Employees5,690
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)2.67
Shares Outstanding62,703,133
10 Day Avg. Volume589,132
30 Day Avg. Volume581,451
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)1.95
Price to Sales (P/S)2.25
P/FCF Ratio8.77
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit2.20
Enterprise Value/Ebitda5.03
Forecast
1Y Price Target
$44.00Price Target Upside21.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.86
Revenue Forecast (FY)$865.00M
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 Uni...
How the Company Makes Money
Perdoceo primarily makes money by charging tuition and fees to students enrolled in its degree programs, delivered largely through online instruction (and, where applicable, in-person components). Revenue is recognized from educational services pr...
Perdoceo Education Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized strong profitability, margin expansion, revenue growth and improving enrollment and retention metrics across the company, supported by a solid cash balance and a constructive 2026 outlook. Near-term headwinds include a modest enrollment decline at AIU System, continued reinvestment in marketing and student support that pressures near-term expenses, tax rate/headwind considerations, and CTU comparability as the company laps strong prior quarters and anticipates record graduations. On balance, positive operational and financial momentum, a confident outlook with quantified guidance increases, and a strong balance sheet outweigh the identified challenges.Positive Updates
Strong Profitability and EPS Growth
Net income of $54.0M, or $0.85 per diluted share, up 30.8% vs prior year quarter; adjusted EPS of $0.90, up 28.6% from $0.70 a year ago.
Negative Updates
AIU System Enrollment Decline
Total enrollments at AIU System decreased 2.2% year-over-year, driven primarily by lower enrollments at Trident University — the decline was expected but remains a headwind for that segment.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and EPS Growth
Net income of $54.0M, or $0.85 per diluted share, up 30.8% vs prior year quarter; adjusted EPS of $0.90, up 28.6% from $0.70 a year ago.
Read all positive updates
Company Guidance
Perdoceo guided full‑year 2026 adjusted operating income of $254–$263 million (vs. $237.6M in 2025) and adjusted EPS of $3.05–$3.16 (vs. $2.61 in 2025; ~19% increase at the midpoint), with revenue and operating income expected to grow each remaining quarter versus 2025; second‑quarter adjusted operating income is forecast at $63–$64M (vs. $61.5M) and adjusted EPS $0.79–$0.80 (vs. $0.67, including a $0.05 nonrecurring tax benefit). The company expects a full‑year effective tax rate of 22.5%–23.5% (cash taxes ~23%–24% of pretax income), capital expenditures of about 1.5% of revenue, ended Q1 with $680M in cash/cash equivalents/restricted cash/short‑term investments (up ~$36.5M year‑over‑year) and Q1 operating cash flow of $69.4M (vs. $65.1M), returned ~$18M to shareholders in the quarter, has $91.9M remaining on its repurchase authorization, declared a $0.15 quarterly dividend payable June 12, 2026, and expects enrollment‑driven revenue support (total enrollments +1.1% as of March 31; CTU +1.9% to 34,050; AIU System −2.2%; St. Augustine ~4,400 students) with St. Augustine expected to deliver double‑digit adjusted operating income growth in 2026.Perdoceo Education Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
91
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 854.84M | 846.10M | 681.26M | 710.00M | 695.21M | 693.03M |
| Gross Profit | 607.80M | 606.93M | 560.40M | 579.68M | 578.49M | 584.29M |
| EBITDA | 265.81M | 264.93M | 216.70M | 209.41M | 154.40M | 166.75M |
| Net Income | 170.18M | 159.91M | 147.59M | 147.65M | 95.87M | 109.64M |
Balance Sheet | ||||||
| Total Assets | 1.29B | 1.27B | 1.24B | 1.01B | 957.37M | 847.43M |
| Cash, Cash Equivalents and Short-Term Investments | 1.36B | 643.49M | 568.92M | 603.14M | 508.72M | 494.19M |
| Total Debt | 60.15M | 105.09M | 131.54M | 27.05M | 33.84M | 44.95M |
| Total Liabilities | 288.86M | 299.80M | 277.50M | 165.90M | 231.52M | 197.32M |
| Stockholders Equity | 999.91M | 972.41M | 959.54M | 841.42M | 725.85M | 650.11M |
Cash Flow | ||||||
| Free Cash Flow | 220.92M | 216.66M | 156.97M | 105.61M | 135.57M | 180.66M |
| Operating Cash Flow | 229.50M | 225.24M | 161.59M | 112.03M | 148.19M | 191.12M |
| Investing Cash Flow | -61.88M | -53.64M | -107.78M | -88.51M | -326.75M | 54.32M |
| Financing Cash Flow | -156.15M | -171.07M | -41.08M | -23.38M | -27.73M | -29.95M |
Perdoceo Education Technical Analysis
Neutral
36.32
Price Trends
35.32
Negative
33.53
Positive
32.82
Positive
Market Momentum
-0.15
Positive
44.67
Neutral
17.64
Positive
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 36.32 is above the 20-day moving average (MA) of 34.35, above the 50-day MA of 35.32, and above the 200-day MA of 32.82, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 17.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRDO.
Perdoceo Education Risk Analysis
Perdoceo Education disclosed 34 risk factors in its most recent earnings report. Perdoceo Education reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Perdoceo Education Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.17B | 10.78 | 17.21% | 1.88% | 17.75% | 15.21% | |
77 Outperform | $1.83B | 13.67 | 7.85% | 2.99% | 3.02% | 20.69% | |
72 Outperform | $4.27B | 15.09 | 29.53% | ― | 7.43% | 0.49% | |
70 Outperform | $998.25M | 14.66 | 14.02% | ― | 3.84% | 87.34% | |
66 Neutral | $1.57B | 72.68 | 11.72% | ― | 19.92% | 84.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
PRDO
Perdoceo Education
33.89
3.52
11.58%
APEI
American Public Education
53.56
25.46
90.60%
LOPE
Grand Canyon Education
159.50
-34.49
-17.78%
LINC
Lincoln Edu
47.51
26.07
121.60%
STRA
Strategic Education
80.04
-5.79
-6.75%
Perdoceo Education Corporate Events
Business Operations and StrategyExecutive/Board Changes
Perdoceo Education Adopts 2026 Executive Annual Incentive Plan
Positive
Mar 13, 2026
On March 10, 2026, Perdoceo Education Corporation’s Compensation Committee approved its 2026 Annual Incentive Plan, maintaining a structure largely consistent with the prior year’s program. The plan continues to tie 80% of senior execu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.