PERDOCEO EDUCATION Corp (PRDO) stock analysis

P/E above its 5-year median

Perdoceo Education's P/E of 10.2 is above its own 5-year median of 9.9.

P/E below the industry

Perdoceo Education's P/E of 10.2 is below the Services-educational services median of 13.0.

EV/EBITDA below its 5-year median

Perdoceo Education's EV/EBITDA of 4.1 is below its 5-year median of 4.3.

P/B below the industry

Perdoceo Education's price-to-book of 1.73 is below the Services-educational services median of 2.30.

Trading below fair value

The share price of $28.96 is below our fair value estimate of $35.31.

Margin of safety under 20%

The price is 18.0% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 20.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 16.4% over the last twelve months, against a 5-year average of 5.2% a year.

Growing faster than the industry

Revenue grew 6.4% over the last twelve months; the Services-educational services median is 2.7%.

Guidance raised

Perdoceo Education raised its Year Ending December 31, 2026 Adjusted Operating Income outlook on Aug 6, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 17.8% over the last twelve months and averaged 16.8% over five years.

Return on capital over 10%

Return on invested capital was 54.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Perdoceo Education's return on equity of 17.8% is above the Services-educational services median of 0.6%.

Earnings grew over 5 years

Net income grew 5.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 21.1% over the last twelve months, against a 5-year average of 18.2%.

Net margin above the industry

Perdoceo Education's net margin of 21.1% is above the Services-educational services median of -3.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 35.4 times.

Short-term assets cover short-term debts

Current assets are 4.54 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.09; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Perdoceo Education paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Perdoceo Education yields 2.1%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.