One-glance verdict
Undervalued
$121.07 our estimate vs market $32.80
Wall Street consensus: $44.00 (-63.7% lower than our fair-value estimate)
73% below our estimate, below the bear case
Fundamentals snapshot
Perdoceo Education Corporation
PRDO · NMS · Consumer Defensive · Education & Training Services
Current price
$32.80
52-week range
$26.66 - $38.50
Market cap
$2.05B
Balance sheet
Healthy
34.88x Strong cushion
Net cash $620.23M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 17.6% on equity, ahead of 40% of its peers.
- Risk Stock trades 12.9% above its 5-year average P/E.
- Risk Insider ownership is only 1.2% (peer median: 3.6%).
What this company does
Perdoceo Education Corporation
Perdoceo Education Corporation helps people get degrees and job skills through online and in-person classes at schools like Colorado Technical University and American InterContinental University. Most of their money comes from students paying tuition for these career-focused programs, which matters because it shows how many people are investing in their education with Perdoceo's help.
How the company got here
Perdoceo Education Corporation, originally founded as Career Education Corporation in 1994, has undergone significant transformations over the years. It began as a broader for-profit education company and has since streamlined its focus to concentrate on specific areas within higher education. This evolution involved simplifying its portfolio and divesting certain assets to hone in on its core strengths. The company officially changed its name to Perdoceo Education Corporation in January 2020, reflecting its renewed commitment to its mission of teaching and instructing thoroughly.
What it actually does
Perdoceo Education Corporation provides postsecondary education, meaning it offers college-level degrees and programs. These educational offerings are delivered through various methods, including fully online courses, in-person classes on campuses, and a mix of both called blended learning. The company's primary goal is to equip students with skills and knowledge that are relevant to their careers, helping them advance professionally.
Colorado Technical University (CTU)
Colorado Technical University (CTU) is one of Perdoceo's main educational institutions, primarily serving adult learners through flexible, career-focused programs. CTU offers a wide range of academic programs, including business, management, nursing, healthcare, computer science, and criminal justice. A significant portion of its students are over 30 years old, and many are enrolled in bachelor's degree programs. CTU is known for its online delivery and innovative learning technologies, such as its adaptive learning platform called intellipath®.
The American InterContinental University System (AIUS)
The American InterContinental University System (AIUS) is another key part of Perdoceo, offering career-oriented academic programs in fields like business, information technology, education, and behavioral sciences. Like CTU, AIUS primarily serves adult learners and offers its programs through online, campus-based, and blended learning formats. Many of its students are also over 30, and bachelor's degrees are a common program level. AIUS also utilizes technology to enhance the learning experience and has received recognition for its online programs.
University of St. Augustine for Health Sciences (USAHS)
The University of St. Augustine for Health Sciences (USAHS) is Perdoceo's segment focused on graduate health sciences education. It offers degrees in high-demand fields such as physical therapy, occupational therapy, speech-language therapy, and nursing. USAHS often involves a hybrid learning model, combining online coursework with on-campus or clinical experiences, which is crucial for health sciences professions that require hands-on training and licensure. This segment represents a more specialized area of education within Perdoceo's portfolio.
What management is betting on now
Perdoceo's management is focused on optimizing enrollment and student retention, aiming for sustainable growth by enhancing the student experience and aligning academic programs with job market demands. They are investing in technology, including data analytics and AI, to improve learning outcomes and operational efficiency. The company is also expanding its corporate partnerships to offer degree programs to employees, which can help reduce student debt and improve career advancement. A key strategy involves leveraging its existing institutions, particularly CTU for its strong online presence and USAHS for its growth potential in health sciences, to drive future success.
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
$50.00M
FY2024 Q4
$15.97M
FY2025 Q1
$63.39M
FY2025 Q2
$76.03M
FY2025 Q3
$39.37M
FY2025 Q4
$37.88M
FY2026 Q1
$67.65M
FY2026 Q2
$73.08M
Revenue
$213.35M
Net income
$47.97M
Diluted EPS
0.75
Operating cash flow
$74.63M
Free cash flow
$73.08M
Fetching…
Sources
Revenue
$221.74M
Net income
$53.95M
Diluted EPS
0.85
Operating cash flow
$69.39M
Free cash flow
$67.65M
Fetching…
Sources
Revenue
$211.64M
Net income
$35.35M
Diluted EPS
0.55
Operating cash flow
$40.11M
Free cash flow
$37.88M
Fetching…
Sources
Revenue
$211.87M
Net income
$39.85M
Diluted EPS
0.60
Operating cash flow
$41.23M
Free cash flow
$39.37M
Fetching…
Sources
Revenue
$209.58M
Net income
$41.03M
Diluted EPS
0.62
Operating cash flow
$78.78M
Free cash flow
$76.03M
Fetching…
Sources
Revenue
$213.00M
Net income
$43.69M
Diluted EPS
0.65
Operating cash flow
$65.13M
Free cash flow
$63.39M
Fetching…
Sources
Revenue
$176.43M
Net income
$31.46M
Diluted EPS
0.46
Operating cash flow
$17.60M
Free cash flow
$15.97M
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Sources
Revenue
$169.83M
Net income
$38.26M
Diluted EPS
0.57
Operating cash flow
$50.98M
Free cash flow
$50.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $121.07 vs current price $32.80
Wall Street consensus is the average analyst price target: $44.00 (-63.7% lower than our fair-value estimate).
Our most-likely fair value is $121.07 a share — about 269.2% above today's price of $32.80, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $620.2M - more cash than debt. Interest coverage 34.9x.
Net debt
$-620.23M
Interest coverage
34.88x
Perdoceo Education Corporation's profit covers its interest bill about 34.9 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
PRDO
BASELINE
Perdoceo Education Corporation
Total debt $113.77M Interest coverage 34.88x This is the baseline the peer rows are being compared against.
Total debt $104.21M Interest coverage 75,830.25x +217,304% vs PRDO Carries about 2174.0x more debt cushion than PRDO.
Total debt $619.04M Interest coverage 38.27x +10% vs PRDO Has roughly the same debt cushion as PRDO.
What you should know
The case for and against PRDO
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Returns 17.6% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 12.9% above its 5-year average P/E.
-
Insider ownership is only 1.2% (peer median: 3.6%).
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)
11.93x
Forward P/E
9.94x
P/B
1.99x
P/S
2.39x
EV/EBITDA
5.72x
PEG ratio
0.66x
Profitability
How much profit each dollar creates
Gross margin
79.9%
Operating margin
25.7%
Net margin
20.6%
ROE
17.6%
ROA
10.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.11x
Current ratio
4.69x
Quick ratio
4.56x
Total debt
$113.77M
Total cash
$734.00M
Growth
How the business has been compounding
Revenue TTM
$858.61M
Revenue 5Y CAGR
5.1%
EPS TTM
2.75
EPS 5Y CAGR
20.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$225.35M
Free CF TTM
$216.66M
FCF margin
25.2%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
21.8%
Last ex-div date
2026-09-01