Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: 1.88%
• Average Volume (3M): 563.55K
• Price to Earnings (P/E): 11.9
• 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): 0.54
• Shares Outstanding: 62,478,374
• 10 Day Avg. Volume: 637,127
• 30 Day Avg. Volume: 563,555
• 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: 0.99
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 8.47
• 1Y Price Target: $42.00
• Price Target Upside: 17.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.58
• Revenue Forecast (FY): $875.23M

• Rating: 85 Outperform
• Price Target: $42.00 ▲(17.38% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

PRDO scores well primarily on strong financial performance (high profitability, strong cash generation, and low leverage) and a constructive earnings outlook with ongoing shareholder returns. Technicals support the trend but appear near overbought, while valuation remains relatively attractive with a modest dividend.

Positive Factors

Strong cash generation

Perdoceo converts earnings into cash at a high rate (operating cash flow about 1.0x–1.7x net income and ~1.63x in 2025) and free cash flow closely tracks net income (~0.96x in 2025). This durable cash conversion supports buybacks, dividends and reinvestment capacity without relying on external financing.

Conservative balance sheet

A low debt-to-equity ratio (~0.06 in 2025) and a growing capital base give Perdoceo financial flexibility to withstand regulatory or enrollment swings. Healthy ROE (roughly 13%–22%) shows effective capital deployment, reducing solvency risk and enabling continued shareholder returns or strategic investments.

Enrollment-driven revenue pickup

A 15.1% rise in enrollments, CTU’s enrollment gains and the St. Augustine acquisition materially expanded scale and revenue in 2025. Structural gains in student starts and program additions diversify revenue sources and can sustain mid-term growth if retention and program mix remain solid.

Negative Factors

AIUS enrollment headwind

A decline at the American InterContinental University System indicates program- or brand-level weakness that can persist absent remediation. Because enrollments drive tuition revenue and aid access, sustained softness at AIUS would pressure consolidated revenue and margins despite gains elsewhere.

Volatile free cash flow growth

Although FCF tracks earnings closely overall, the documented swings and declines in 2022–2023 reduce predictability of cash available for buybacks, investment, or cushion against shocks. This variability complicates multi-period planning for capital allocation and stress scenarios.

Reported margin data inconsistency

Inconsistent or missing 2025 gross profit and EBIT margin data undermines confidence in assessing margin drivers and sustainability. Reliable margin detail is essential for forecasting profitability trends and evaluating whether recent margins are durable versus one-time or reporting artifacts.

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 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 provided over the academic period as students attend courses. A significant driver of cash collections for the company is student financial aid funding, including U.S. federal student aid programs (e.g., Title IV loans and grants) and other third-party payment sources; students may also pay out of pocket. Key revenue streams therefore include: (1) tuition revenue from ongoing enrollments at its universities (notably AIU and CTU), (2) education-related fees and other student charges associated with instruction and academic services, and (3) where applicable, revenue from ancillary education offerings operated or owned by the company (such as alternative credential/training offerings) when these are part of the company’s portfolio. The company’s earnings are influenced by factors such as new student starts, retention and persistence (how long students remain enrolled), program mix (undergraduate vs. graduate), pricing/tuition rates, and regulatory compliance requirements tied to access to federal financial aid programs. Specific partnership revenue arrangements (e.g., named corporate or university partners and their financial impact) are not available in the provided prompt and are therefore null.

Perdoceo Education Financial Statement Overview

Summary

Strong overall fundamentals driven by high profitability and excellent cash conversion (operating cash flow > net income; free cash flow closely tracks earnings). Balance sheet leverage is low (debt-to-equity ~0.06 in 2025) with healthy ROE, though revenue growth has been uneven and 2025 margin field inconsistencies reduce 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	264.93M	216.70M	209.41M	154.40M	166.75M
Net Income	159.91M	147.59M	147.65M	95.87M	109.64M
Balance Sheet
Total Assets	1.27B	1.24B	1.01B	957.37M	847.43M
Cash, Cash Equivalents and Short-Term Investments	643.49M	568.92M	603.14M	508.72M	494.19M
Total Debt	105.09M	131.54M	27.05M	33.84M	44.95M
Total Liabilities	299.80M	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: 35.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 35.78 is above the 20-day moving average (MA) of 33.34, above the 50-day MA of 32.15, and above the 200-day MA of 31.74, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 74.07 is Negative, neither overbought nor oversold. The STOCH value of 90.49 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
PRDO	85 Outperform	$2.24B	11.89	16.30%	1.88%	24.23%	17.56%
STRA	75 Outperform	$1.84B	14.05	7.65%	2.99%	3.74%	-8.40%
LOPE	73 Outperform	$4.45B	21.44	28.22%	―	7.05%	-2.63%
APEI	71 Outperform	$1.06B	21.57	11.20%	―	6.75%	141.11%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	61 Neutral	$1.20B	14.71	10.75%	―	16.90%	41.11%

Perdoceo Education Corporate Events

Perdoceo Education Adopts 2026 Executive Annual Incentive Plan

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 executives’ bonuses to company-wide adjusted operating income and 20% to individual goals, with payouts ranging from zero below a threshold level to a cap of 200% of target values.

The individual goals component will generally be calibrated based on the level of achievement of the adjusted operating income metric and may be adjusted to reflect each executive’s contribution to the company’s business objectives. This design reinforces Perdoceo’s focus on profitability and performance alignment in executive compensation, potentially sharpening management’s incentives around operating income and strategic execution in 2026.

The most recent analyst rating on (PRDO) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Perdoceo Education stock, see the PRDO Stock Forecast page.

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.