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Perdoceo Education (PRDO)
NASDAQ:PRDO
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Perdoceo Education (PRDO) AI Stock Analysis

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PRDO

Perdoceo Education

(NASDAQ:PRDO)

Rating:78Outperform
Price Target:
$33.00
▲(0.24% Upside)
Perdoceo Education's strong financial performance and positive earnings call are the most significant factors contributing to its score. The company's robust growth, efficient cost management, and shareholder returns are key strengths. Technical analysis indicates a neutral trend, and the valuation suggests the stock is fairly valued. Concerns about enrollment variability and tax implications are minor risks.
Positive Factors
Financial Performance
Perdoceo Education reported financial results that topped expectations and raised guidance.
Investment Rating
Perdoceo is included on the Best Ideas List for 2025, with an OUTPERFORM investment rating.
Liquidity
The company holds $660 million in cash and has no long-term debt.
Stock Buyback
A new $75 million share repurchase was announced.
Negative Factors
Market Perception
Perdoceo's shares trade at a significant discount to its peer group, with a raised price target of $38, indicating approximately 50% upside.
Valuation Concerns
Perdoceo's shares trade at a significant discount to its postsecondary education peer group average.

Perdoceo Education (PRDO) vs. SPDR S&P 500 ETF (SPY)

Perdoceo Education Business Overview & Revenue Model

Company DescriptionPerdoceo 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 MoneyPerdoceo Education generates revenue primarily through tuition and fees paid by students enrolled in its degree programs. The company benefits from multiple revenue streams, including traditional tuition for on-campus and online courses, as well as ancillary fees related to course materials and student services. Additionally, Perdoceo may receive funding through federal and state financial aid programs, which can significantly contribute to its revenue. Partnerships with various educational organizations and employers can also enhance its offerings and attract more students, further solidifying its financial performance. The combination of a growing enrollment base, effective marketing strategies, and a focus on student retention are key factors contributing to the company's earnings.

Perdoceo Education Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented strong financial results, significant enrollment growth, and a successful acquisition, leading to an optimistic outlook for the remainder of 2025. Despite minor potential variability in enrollment at AIU System, the overall performance and strategic initiatives position the company positively for future growth.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net income for the quarter was $41 million or $0.62 per diluted share, exceeding expectations. Adjusted earnings per diluted share were $0.67, marking an 11.7% growth in operating income and a 25.4% increase in adjusted operating income.
Enrollment Growth
Total enrollment grew by 17% compared to the prior year quarter. CTU and AIUS experienced 7% growth each, supported by high student retention and engagement.
Successful Acquisition of St. Augustine
The acquisition of St. Augustine contributed $36.7 million to revenue and showed positive enrollment trends, with expectations for further growth in the fall term.
Increased Shareholder Returns
The company repurchased 1.6 million shares for $46 million and increased the quarterly dividend from $0.13 to $0.15 per share, reflecting a commitment to shareholder returns.
Revenue Growth
Revenue for the second quarter was $209.6 million, a 26% increase compared to the prior year. This was supported by the St. Augustine acquisition and enrollment growth at CTU and AIUS.
Positive Outlook for 2025
The company raised its full-year adjusted operating income outlook to $230-$236 million, up from $188.9 million in 2024, with expectations for continued enrollment growth and strong financial performance.
Negative Updates
Potential Enrollment Variability
AIU System may experience quarterly variability in total enrollment trends due to enrollment date comparability, which could impact quarterly results.
Company Guidance
In the second quarter of 2025, Perdoceo Education Corporation reported strong financial and operational performance, with net income reaching $41 million, or $0.62 per diluted share, and adjusted earnings per diluted share at $0.67, excluding certain noncash items. The company experienced a 17% growth in total enrollment compared to the prior year, driven by a 7% increase at both CTU and AIUS and the acquisition of St. Augustine. Notably, CTU saw its student enrollment grow for the seventh consecutive quarter, marking a significant achievement. Revenue for the quarter was $209.6 million, a 26% increase from the previous year, largely due to the $36.7 million contribution from the St. Augustine acquisition. The company also made strides in capital allocation, repurchasing 1.6 million shares for $46 million and announcing a new $75 million share repurchase authorization. Additionally, the quarterly dividend increased from $0.13 to $0.15 per share. With ongoing investments in technology and student support processes, the company raised its full-year adjusted operating income outlook to between $230 million and $236 million, expecting continued growth in enrollment and revenue.

Perdoceo Education Financial Statement Overview

Summary
Perdoceo Education exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The company's balance sheet is solid with low leverage and strong equity ratios, providing financial stability. While liquidity management could improve, the company's financial trajectory is positive.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue726.00M681.26M710.00M695.21M693.03M687.31M
Gross Profit586.46M560.40M579.68M578.49M584.29M575.55M
EBITDA220.84M215.47M209.41M152.37M165.78M158.33M
Net Income151.84M147.59M147.65M95.87M109.64M124.26M
Balance Sheet
Total Assets1.27B1.24B1.01B957.37M847.43M721.52M
Cash, Cash Equivalents and Short-Term Investments590.58M568.92M603.14M508.72M494.19M406.36M
Total Debt70.98M131.54M27.05M33.84M44.95M53.19M
Total Liabilities298.29M277.50M165.90M231.52M197.32M165.61M
Stockholders Equity970.25M959.54M841.42M725.85M650.11M555.91M
Cash Flow
Free Cash Flow167.06M156.97M105.61M135.57M180.66M170.19M
Operating Cash Flow172.23M161.59M112.03M148.19M191.12M179.96M
Investing Cash Flow-75.80M-107.78M-88.51M-326.75M54.32M-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 Price32.92
Price Trends
50DMA
30.81
Positive
100DMA
30.37
Positive
200DMA
28.33
Positive
Market Momentum
MACD
0.67
Positive
RSI
63.36
Neutral
STOCH
40.61
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 32.92 is above the 20-day moving average (MA) of 32.30, above the 50-day MA of 30.81, and above the 200-day MA of 28.33, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 63.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRDO.

Perdoceo Education Risk Analysis

Perdoceo Education disclosed 30 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$2.14B14.2716.39%1.64%15.99%13.25%
78
Outperform
$1.98B17.266.89%2.93%4.31%-1.08%
72
Outperform
$4.85B21.7016.60%12.85%81.69%
71
Outperform
$573.09M29.9610.20%5.50%338.59%
71
Outperform
$1.49B23.6623.11%14.56%127.02%
63
Neutral
$20.50B14.76-2.72%3.09%1.90%-4.74%
55
Neutral
$615.61M42.228.27%14.53%75.66%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRDO
Perdoceo Education
32.92
12.18
58.73%
APEI
American Public Education
31.60
17.08
117.63%
ATGE
Adtalem Global Education
134.45
64.39
91.91%
LINC
Lincoln Edu
19.38
7.67
65.50%
STRA
Strategic Education
81.96
-8.85
-9.75%
UTI
Universal Technical Institute
26.93
10.37
62.62%

Perdoceo Education Corporate Events

Executive/Board ChangesShareholder Meetings
Perdoceo Education Holds Annual Stockholders Meeting
Neutral
May 29, 2025

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.

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.Date of analysis: Aug 06, 2025