Laureate Education, Inc. (LAUR) stock analysis

P/E below its 5-year median

Laureate Education's P/E of 13.0 is below its own 5-year median of 17.4.

P/E above the industry

Laureate Education's P/E of 13.0 is above the Services-educational services median of 13.0.

EV/EBITDA above its 5-year median

Laureate Education's EV/EBITDA of 9.8 is above its 5-year median of 8.4.

P/B above the industry

Laureate Education's price-to-book of 4.17 is above the Services-educational services median of 2.30.

Trading above fair value

The share price of $35.61 is above our fair value estimate of $34.75.

Margin of safety under 20%

The price is 2.5% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 11.1% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 66.4% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 20.9% over the last twelve months; the Services-educational services median is 2.7%.

Guidance raised

Laureate Education raised its full-year 2026 Revenues outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 28.6% over the last twelve months, against 26.8% a year earlier.

Return on equity over 15%

Return on equity was 34.1% over the last twelve months and averaged 17.7% over five years.

Return on capital over 10%

Return on invested capital was 36.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Laureate Education's return on equity of 34.1% is above the Services-educational services median of 0.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 20.3% over the last twelve months, against a 5-year average of 13.2%.

Net margin above the industry

Laureate Education's net margin of 20.3% is above the Services-educational services median of -3.7%.

Low debt

Debt is 17.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 43.7% five years ago to 17.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 206% of total debt.

Interest well covered

Operating income covers interest expense 33.7 times.

Short-term assets don't cover short-term debts

Current assets are 0.71 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.81; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Laureate Education has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.