Perdoceo Education (PRDO) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Perdoceo Education (PRDO) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Updated October 2021
Perdoceo Edu. Fundamentals
Stock Price Target: $16.04
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Perdoceo Education in comparison to the Education industry and the S&P 500.
Perdoceo Education is a Small Cap company with a Market Cap of $778.6M.
| Perdoceo Edu. | Education | S&P 500 | T-Bill (10Y) |
|---|---|---|---|
| 32.36% | 5.15% | 2.94% | 1.61% |
The current earnings yield for Perdoceo Edu. is 32.36%, in comparison to 2.94% for the S&P 500 and 1.61% for the 10-year treasury bond. The median earnings yield for the Education industry is 5.15%.
| Perdoceo Edu. | Education | S&P 500 |
|---|---|---|
| 6.45 | 26.63 | 34.01 |
Perdoceo Edu. is currently trading at a P/E of 6.45. The P/E for the Education industry is 26.63 and the P/E for the S&P 500 is 34.01.
| Perdoceo Edu. | Education | S&P 500 |
|---|---|---|
| 1.16 | 2.48 | 3.09 |
Perdoceo Edu. is currently trading at a P/S of 1.16. The P/S for the Education industry is 2.48 and the P/S for the S&P 500 is 3.09.
| Perdoceo Edu. | Education | S&P 500 |
|---|---|---|
| 1.42 | 2.92 | 4.58 |
Perdoceo Edu. is currently trading at a P/B of 1.42. The P/B for the Education industry is 2.92 and the P/B for the S&P 500 is 4.58.
Return on Invested Capital (ROIC)
| Perdoceo Edu. | Education | S&P 500 |
|---|---|---|
| 21.07% | 9.89% | 8.6% |
Perdoceo Edu. ROIC is currently 21.07% in comparison to 9.89% for the Education industry and 8.6% for the S&P 500.
| Perdoceo Edu. | Education | S&P 500 |
|---|---|---|
| -11.88% | -38.80% | 16.26% |
The YTD performance for Perdoceo Edu. is -11.88%. The Education industry has a YTD performance of -38.80% in comparison to the YTD S&P 500 performance of 16.26%.
Note: The YTD performance for the Education industry is based on the YTD return for the EDUT ETF.
Recent Financial Results
- YoY revenue increased 3.5% to $359.2M
- YoY operating income increased 2.6% to $76.6M
- Q2 2021 revenue decreased 0.3% to $175.5M (decline in revenue at AIU was partially offset by growth at CTU)
- Q2 2021 operating income decreased 3.8% to $36.0M
- Earnings per diluted share was $0.37 as compared to $0.40
- Total student enrollments at June 2021 increased by 7.5%, with CTU experiencing a 14.2% increase
- Cash and cash equivalents of $480.7M
Stock Price Target: $16.04
Company Overview
Perdoceo Education provides postsecondary education online, campus based, and blended learning programs in the US. The company operates through two segments: Colorado Technical University and the American InterContinental University System. Perdoceo offers academic programs in computer science, engineering, information systems and technology, and cybersecurity.
The company provides it’s online learning services through Intellipath, it’s personalized learning platform and mobile application with two-way messaging capability. To expand operations, the Perdoceo has recently focused on acquiring online learning platforms, primarily centered on reskilling and upskilling in tech fields. In 2020, the company acquired Trident University, an accredited university offering online undergraduate, master’s and doctoral programs (a strong focus on graduate programs). Trident is incorporated into the American InterContinental University system.
As of December 2020, the company had a total student enrollment of approximately 42,700 students. The current CEO of Perdoceo Education is Todd Nelson. The company was incorporated in 1994 and is headquartered in Schaumburg, Illinois.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.