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1. Company Snapshot

1.a. Company Description

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions.The company offers a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs.It provides its services in Mexico, Peru, and the United States.


The company was formerly known as Sylvan Learning Systems, Inc.and changed its name to Laureate Education, Inc.in May 2004.


Laureate Education, Inc.was founded in 1989 and is headquartered in Miami, Florida.

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1.b. Last Insights on LAUR

Laureate Education's recent performance has been driven by strong enrollment growth, particularly in Mexico and Peru, with a 7% year-over-year increase, reaching 511,000 total enrollments. The company's Q3 revenue grew 8.5% year-over-year, accompanied by an 11% rise in adjusted net income. Institutional investors have shown confidence, with Campbell & CO Investment Adviser LLC increasing its stake by 46.0%, and Formula Growth acquiring 111,000 shares, valued at $3.5 million. Additionally, the company has increased its share repurchase authorization by $150 million.

1.c. Company Highlights

2. Laureate Education Delivers Strong 2025 Performance, Sets Stage for Continued Growth

Laureate Education reported a robust financial performance in 2025, with full-year revenue reaching $1.7 billion and adjusted EBITDA of $519 million, both exceeding guidance. The company achieved 9% top-line growth and a historic high margin of 30.5%. The actual EPS came out at $0.76, in line with estimates. The strong financial performance was accompanied by a solid financial position, with the company closing 2025 with a net cash position and returning $217 million of capital to shareholders through its stock repurchase program.

Publication Date: Mar -09

📋 Highlights
  • Revenue & EBITDA Exceed Guidance:: Full-year revenue reached $1.7 billion (+9% growth), adjusted EBITDA hit $519 million, surpassing expectations with a margin of 30.5%.
  • Capital Return & Financial Strength:: $217 million returned to shareholders via buybacks, net cash position, and a $150 million stock repurchase program increase.
  • Regional Growth in Mexico & Peru:: Mexico revenue up 9% (EBITDA +17%), Peru revenue up 7% (EBITDA +9%) driven by enrollment and price/mix gains.
  • 2026 Guidance:: Revenue projected at $1.89–$1.905 billion (+11–12%), adjusted EBITDA expected at $583–$593 million (+12–14%), with 50 basis point margin expansion.
  • Strategic Campus Expansion:: New campus launches planned to address capacity constraints, with AI adoption focused on retention and education quality, not disruption.

Segment Performance

In 2025, new enrollments increased 8%, and total enrollments were up 5%. Mexico's revenue grew 9% for the full year, driven by a 6% increase in average total enrollments and 3% of price/mix, while adjusted EBITDA increased 17%. Peru's revenue increased 7% year-over-year, driven by a 6% increase in average total enrollments, with adjusted EBITDA increasing 9%. The strong performance in these markets underscores the company's ability to drive growth through a combination of volume and pricing.

Outlook for 2026

For 2026, Laureate expects total enrollments to be between 516,000 to 521,000 students, reflecting 4% to 5% growth versus 2025. Revenues are expected to be between $1.890 billion to $1.905 billion, reflecting growth of 11% to 12% on an as-reported basis. The company expects adjusted EBITDA margins to expand by approximately 50 basis points, driven by continued operational efficiency. Analysts' estimates suggest revenue growth of around 7.4% next year, slightly higher than the company's guidance.

Valuation

Laureate Education's current valuation multiples are as follows: P/E Ratio of 16.62, P/B Ratio of 3.94, EV/EBITDA of 10.27. These metrics suggest that the market is pricing in a reasonable growth outlook for the company. With a Return on Equity (ROE) of 26.41% and Return on Invested Capital (ROIC) of 17.34%, Laureate is demonstrating strong profitability. The current valuation appears reasonable, given the company's growth prospects and financial performance.

Growth Strategy

The company remains committed to its growth agenda, with a focus on expanding access to high-quality education. Laureate is investing in new campus launches, including one in Peru in March 2026, to address capacity constraints and drive growth. The company is also leveraging technology, including AI, to improve retention, learning outcomes, and access to quality education. As the company continues to execute on its strategy, it is well-positioned for sustained growth and profitability.

3. NewsRoom

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Laureate Education (NASDAQ:LAUR) Given Consensus Rating of “Buy” by Brokerages

Mar -19

Source: defenseworld.net

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Laureate Education $LAUR Stock Holdings Lifted by Algert Global LLC

Mar -15

Source: defenseworld.net

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Education Stock Up 84% as One Fund Ups Stake to Nearly $6 Million

Mar -13

Source: fool.com

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Buy These 5 Low-Leverage Stocks as Oil Price Spike Slows Down

Mar -05

Source: zacks.com

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DNB Asset Management AS Purchases 314,120 Shares of Laureate Education $LAUR

Mar -01

Source: defenseworld.net

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Laureate Education (NASDAQ:LAUR) Receives Consensus Rating of “Moderate Buy” from Brokerages

Feb -22

Source: defenseworld.net

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Laureate Education, Inc. (LAUR) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

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Laureate Education Reports Financial Results for the Fourth Quarter and Full-Year 2025 and Provides 2026 Outlook

Feb -19

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.64%)

6. Segments

Mexico

Expected Growth: 6.5%

Mexico's 6.5% growth is driven by increasing demand for higher education, a growing middle class, and government initiatives to improve education infrastructure. Additionally, Laureate's strong brand reputation, diverse program offerings, and strategic partnerships with local institutions contribute to its success in the region.

Peru

Expected Growth: 6.8%

Peru's 6.8% growth is driven by increasing demand for higher education, a growing middle class, and government initiatives to improve education infrastructure. Laureate Education's strong brand reputation, diverse program offerings, and strategic partnerships with local institutions also contribute to its success in the region.

Corporate

Expected Growth: 5.5%

Laureate Education, Inc.'s corporate segment growth of 5.5% is driven by increasing demand for online and hybrid education, strategic expansion into emerging markets, and effective cost management. Additionally, the company's focus on providing high-quality, affordable education and its strong brand reputation contribute to its growth momentum.

7. Detailed Products

Online Higher Education

Laureate Education offers online higher education programs and courses through its network of universities and institutions, providing students with flexible and accessible learning opportunities.

On-Campus Higher Education

Laureate Education operates a network of on-campus universities and institutions, offering students a traditional learning experience with face-to-face instruction and campus life.

Vocational and Technical Training

Laureate Education provides vocational and technical training programs, focusing on skills development in areas like healthcare, technology, and culinary arts.

Corporate Training and Development

Laureate Education offers customized corporate training and development programs, helping organizations upskill their workforce and improve performance.

Test Preparation and English Language Training

Laureate Education provides test preparation services and English language training, helping students prepare for standardized tests and improve their language proficiency.

8. Laureate Education, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Laureate Education, Inc. faces moderate threat from substitutes due to the availability of alternative education providers and online learning platforms.

Bargaining Power Of Customers

Laureate Education, Inc. has a diverse student base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and quality of education also limit the bargaining power of customers.

Bargaining Power Of Suppliers

Laureate Education, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's large scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The online education market is highly competitive, and new entrants can easily enter the market with innovative technologies and business models, posing a significant threat to Laureate Education, Inc.

Intensity Of Rivalry

The online education market is highly competitive, with many established players and new entrants vying for market share. This intense rivalry puts pressure on Laureate Education, Inc. to maintain its market position and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.02%
Debt Cost 7.84%
Equity Weight 61.98%
Equity Cost 7.85%
WACC 7.85%
Leverage 61.33%

11. Quality Control: Laureate Education, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Graham

A-Score: 6.5/10

Value: 7.6

Growth: 7.3

Quality: 6.5

Yield: 2.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Laureate Education

A-Score: 6.2/10

Value: 2.9

Growth: 5.6

Quality: 6.0

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Strategic Education

A-Score: 5.3/10

Value: 6.3

Growth: 4.0

Quality: 6.2

Yield: 6.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Adtalem Global Education

A-Score: 5.3/10

Value: 5.7

Growth: 7.4

Quality: 7.4

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Grand Canyon Education

A-Score: 5.2/10

Value: 3.1

Growth: 6.7

Quality: 8.1

Yield: 0.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Stride

A-Score: 4.3/10

Value: 7.7

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.29$

Current Price

33.29$

Potential

-0.00%

Expected Cash-Flows