Perdoceo Education (PRDO) AI Stock Analysis

• Market Cap: $1.79B
• Dividend Yield: 2%
• Average Volume (3M): 743.65K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.57
• 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: 897,159
• 30 Day Avg. Volume: 743,651
• 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: 1.05
• Enterprise Value/Revenue: 2.45
• Enterprise Value/Gross Profit: 3.10
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $42.00
• Price Target Upside: 50.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.33
• Revenue Forecast (FY): $836.74M

• Rating: 74 Outperform
• Price Target: $31.00 ▲(11.39% Upside)

Perdoceo Education's strong financial performance and positive earnings call outlook are the primary drivers of its stock score. The company exhibits robust revenue growth, profitability, and shareholder returns. However, technical analysis indicates bearish momentum, which slightly offsets the overall positive assessment. The valuation is reasonable, further supporting the stock's attractiveness.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Enrollment Growth

Enrollment growth reflects the company's ability to attract students, enhancing revenue potential and market position over time.

Balance Sheet Health

Low leverage and financial stability provide the company with flexibility to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Enrollment Fraud Allegations

Allegations of enrollment fraud could damage reputation and lead to regulatory scrutiny, potentially impacting future enrollment and revenue.

Decline in AIUS Enrollments

Enrollment decline at AIUS could signal challenges in attracting students, affecting revenue growth and market competitiveness if not addressed.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect profitability if the trend continues.

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 shows strong financial health with consistent revenue growth and profitability. The company maintains a stable balance sheet with low leverage and effective equity utilization. Cash flow generation is robust, though there is room for improvement in cash flow efficiency.

Income Statement

Perdoceo Education has demonstrated strong revenue growth with a 5.9% increase in TTM, indicating a positive trajectory. The company maintains healthy profitability margins with a gross profit margin of 78.9% and a net profit margin of 20.1%. However, there is a slight decline in gross profit margin compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.13, indicating low leverage and financial stability. The return on equity is solid at 16.0%, reflecting efficient use of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow performance is strong with a 22.9% growth in free cash flow, suggesting improved cash generation capabilities. The operating cash flow to net income ratio of 1.26 indicates good cash conversion. However, the free cash flow to net income ratio is slightly below 1, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	768.84M	681.26M	710.00M	695.21M	693.03M	687.31M
Gross Profit	606.58M	560.40M	579.68M	578.49M	584.29M	575.55M
EBITDA	238.93M	216.70M	209.41M	154.40M	166.75M	161.78M
Net Income	154.44M	147.59M	147.65M	95.87M	109.64M	124.26M
Balance Sheet
Total Assets	1.29B	1.24B	1.01B	957.37M	847.43M	721.52M
Cash, Cash Equivalents and Short-Term Investments	637.99M	568.92M	603.14M	508.72M	494.19M	406.36M
Total Debt	124.54M	131.54M	27.05M	33.84M	44.95M	53.19M
Total Liabilities	309.76M	277.50M	165.90M	231.52M	197.32M	165.61M
Stockholders Equity	984.63M	959.54M	841.42M	725.85M	650.11M	555.91M
Cash Flow
Free Cash Flow	205.39M	156.97M	105.61M	135.57M	180.66M	170.19M
Operating Cash Flow	212.48M	161.59M	112.03M	148.19M	191.12M	179.96M
Investing Cash Flow	-54.90M	-107.78M	-88.51M	-326.75M	54.32M	-165.91M
Financing Cash Flow	-92.79M	-41.08M	-23.38M	-27.73M	-29.95M	-13.05M

Perdoceo Education Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRDO, the sentiment is Negative. The current price of 27.83 is below the 20-day moving average (MA) of 29.58, below the 50-day MA of 33.20, and below the 200-day MA of 30.17, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 28.68 is Positive, 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 Negative sentiment for PRDO.

Perdoceo Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	74 Outperform	$1.79B	11.89	16.14%	2.00%	24.23%	17.56%
ATGE	73 Outperform	$3.36B	13.89	17.38%	―	12.24%	52.97%
STRA	71 Outperform	$1.84B	16.28	6.76%	3.07%	3.74%	-8.40%
APEI	68 Neutral	$569.11M	29.86	11.20%	―	6.75%	141.11%
LOPE	68 Neutral	$4.42B	21.33	27.77%	―	7.05%	-2.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	53 Neutral	$650.82M	45.43	7.94%	―	16.90%	41.11%

Perdoceo Education Corporate Events

Perdoceo Education Corp’s Earnings Call Highlights Growth

Perdoceo Education Corporation’s recent earnings call conveyed a positive sentiment, underscoring strong financial performance and significant enrollment growth across its institutions. The company expressed optimism about future growth, bolstered by a favorable regulatory environment. However, there were concerns regarding enrollment variability at the AIU System and potential tax implications.

Perdoceo Education Reports Strong Q2 2025 Results

Perdoceo Education Corporation is a provider of postsecondary education programs, operating in the higher education sector with a focus on online, campus-based, and hybrid learning models through its institutions such as Colorado Technical University, American InterContinental University System, and University of St. Augustine for Health Sciences.