One-glance verdict
Within fair range
$42.10 our estimate vs market $44.44
Wall Street consensus: $62.83 (49.3% higher than our fair-value estimate)
6% above our estimate
Fundamentals snapshot
American Public Education, Inc.
APEI · NMS · Consumer Defensive · Education & Training Services
Current price
$44.44
52-week range
$30.20 - $61.59
Market cap
$813.23M
Balance sheet
Healthy
12.73x Strong cushion
Net cash $68.14M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 3.0% last year.
- Reward Returns 15.6% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
American Public Education, Inc.
American Public Education is a for-profit education company that owns several schools, including American Public University and Rasmussen University. It makes money mainly from student tuition for online and on-campus degree programs, with a heavy focus on career-oriented fields like nursing, national security, and military studies. This means the company's performance is closely tied to student enrollment trends and the job market's demand for these specific professions.
How the company got here
American Public Education started in 1991 as American Military University, founded by a retired Marine Corps Major to help military members get a college education while serving. It was one of the first universities to offer classes entirely online, which made it easier for students with unpredictable schedules to learn. In 2002, the company created American Public University to serve non-military students as well, and the combined schools became the American Public University System (APUS). The company later expanded into healthcare education by acquiring Hondros College of Nursing in 2013 and Rasmussen University in 2021, becoming a major educator for nurses.
What it actually does
American Public Education is a for-profit company that provides college education both online and at physical campuses across the United States. It offers a wide variety of degrees, from associate's to doctoral levels, as well as certificate programs. The company specializes in educating two main groups of people: military members and veterans, and those pursuing careers in nursing and healthcare. Students pay tuition to take classes and earn degrees in fields like nursing, business, national security, and information technology.
American Public University System (APUS)
This is the company's original and fully online business, which includes both American Military University (AMU) and American Public University (APU). AMU focuses on serving active-duty military personnel, veterans, and their families, while APU is designed for other working adults. Students pay for online courses to earn degrees in areas like homeland security, business, and public health. This segment provides a flexible way for people with busy schedules to get a higher education from anywhere.
Rasmussen University
Rasmussen is a university with a long history, founded in 1900, that offers a mix of online and in-person classes at over 20 campuses in several states. APEI acquired it to significantly expand its nursing and health sciences programs, and it is now one of the largest educators of new nurses in the country. Students pay tuition for programs in nursing, health sciences, business, and technology, among others. This part of the company is a major contributor to its revenue (the money a company makes from sales) and focuses on careers that are in high demand.
Hondros College of Nursing
Hondros is a specialized college focused entirely on nursing education, with several campuses in Ohio, Indiana, and Michigan. It offers programs that allow students to become a Practical Nurse or a Registered Nurse relatively quickly. Students pay tuition for these hands-on programs, which use simulation labs to help them prepare for real-world healthcare situations. This segment, though smaller than the others, is a key part of the company's focus on addressing the national nursing shortage.
What management is betting on now
The company's leadership is focused on growing its healthcare education programs to meet the high demand for nurses and other healthcare professionals. They are doing this by opening new campuses for Rasmussen and Hondros and expanding the types of programs offered. Another key priority is using technology, including artificial intelligence (AI), to make the student experience more personal and efficient, from admissions to alumni engagement. Management is also aiming to attract more students from military families and expand its programs to a global audience.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$7.76M
FY2024 Q4
$-1.75M
FY2025 Q1
$33.10M
FY2025 Q2
$11.11M
FY2025 Q3
$17.51M
FY2025 Q4
$-15.62M
FY2026 Q1
$60.78M
FY2026 Q2
$7.40M
Revenue
$171.73M
Net income
$9.77M
Diluted EPS
0.52
Operating cash flow
$12.14M
Free cash flow
$7.40M
Fetching…
Sources
Revenue
$174.74M
Net income
$17.73M
Diluted EPS
0.94
Operating cash flow
$63.30M
Free cash flow
$60.78M
Fetching…
Sources
Revenue
$158.33M
Net income
$12.61M
Diluted EPS
0.67
Operating cash flow
$-11.55M
Free cash flow
$-15.62M
Fetching…
Sources
Revenue
$163.22M
Net income
$5.56M
Diluted EPS
0.30
Operating cash flow
$21.71M
Free cash flow
$17.51M
Fetching…
Sources
Revenue
$162.77M
Net income
$4.50M
Diluted EPS
-0.02
Operating cash flow
$14.81M
Free cash flow
$11.11M
Fetching…
Sources
Revenue
$164.55M
Net income
$8.89M
Diluted EPS
0.41
Operating cash flow
$37.00M
Free cash flow
$33.10M
Fetching…
Sources
Revenue
$164.11M
Net income
$12.96M
Diluted EPS
0.63
Operating cash flow
$1.60M
Free cash flow
$-1.75M
Fetching…
Sources
Revenue
$153.12M
Net income
$2.26M
Diluted EPS
0.04
Operating cash flow
$14.07M
Free cash flow
$7.76M
Fetching…
Sources
Is it cheap or expensive?
Fair value $42.10 vs current price $44.44
Wall Street consensus is the average analyst price target: $62.83 (49.3% higher than our fair-value estimate).
Our most-likely fair value is $42.10 a share — about 5.3% away from today's price of $44.44, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $68.1M - more cash than debt. Interest coverage 12.7x.
Net debt
$-68.14M
Interest coverage
12.73x
American Public Education, Inc.'s profit covers its interest bill about 12.7 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
APEI
BASELINE
American Public Education, Inc.
Total debt $153.47M Interest coverage 12.73x This is the baseline the peer rows are being compared against.
Total debt $113.77M Interest coverage 34.88x +174% vs APEI Carries about 2.7x more debt cushion than APEI.
Total debt $104.21M Interest coverage 75,830.25x +595,448% vs APEI Carries about 5955.5x more debt cushion than APEI.
Total debt $1.46B Interest coverage 2.08x -84% vs APEI Carries about 6.1x less debt cushion than APEI.
What you should know
The case for and against APEI
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.0% last year.
-
Returns 15.6% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.14x
Forward P/E
11.82x
P/B
2.60x
P/S
1.22x
EV/EBITDA
8.84x
PEG ratio
0.97x
Profitability
How much profit each dollar creates
Gross margin
55.9%
Operating margin
7.9%
Net margin
6.8%
ROE
15.6%
ROA
7.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.49x
Current ratio
3.25x
Quick ratio
3.00x
Total debt
$153.47M
Total cash
$221.60M
Growth
How the business has been compounding
Revenue TTM
$668.01M
Revenue 5Y CAGR
11.6%
EPS TTM
2.45
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$85.60M
Free CF TTM
$46.10M
FCF margin
6.9%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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