GICS Sector : Consumer Defensive
Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States.The company operates in two segments, Colorado Technical University and American InterContinental University.It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences.
Perdoceo Education Corporation reported a robust third quarter 2025, with revenue reaching $211.9 million, a 24.8% increase from the prior year, primarily driven by the acquisition of St. Augustine and total enrollment growth at CTU. The company's net income was $39.9 million, or $0.60 per diluted share, while adjusted earnings per diluted share came in at $0.65, beating estimates of $0.61. This strong performance was underpinned by a 15.1% increase in total student enrollments compared to the prior year.
Publication Date: Dec -04
The operational performance was a key driver of the company's success, with CTU's total enrollments growing 6.7% and St. Augustine's fall term new student enrollments showing significant increases. The acquisition of St. Augustine has clearly contributed to the company's growth trajectory, and management expects continued growth in total enrollments in the fourth quarter and for the full year 2025, driven by organic growth trends at CTU and the St. Augustine acquisition.
The company has updated its full-year adjusted operating income outlook to between $234 million and $236 million, and adjusted earnings per diluted share are expected to be between $2.54 and $2.56. For next year, analysts estimate revenue growth at 3.7%, indicating a continued growth trajectory. The company's ability to return capital to shareholders is evident, with $94.1 million returned through share repurchases and quarterly dividends in the first three quarters of 2025.
With a P/E Ratio of 12.08 and an ROE of 15.95%, the company's valuation appears reasonable. The P/S Ratio stands at 2.29, and the EV/EBITDA ratio is 6.97, suggesting that the company's profitability is fairly valued. Additionally, the company's ROIC is 12.17%, indicating efficient use of capital. The Dividend Yield is 1.97%, providing a relatively stable return to shareholders. Overall, the valuation metrics suggest that the company's strong earnings growth is fairly priced in.
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Dec -01
Boston Partners Sells 272,599 Shares of Perdoceo Education Corporation $PRDO
Nov -28
Aviva PLC Sells 9,449 Shares of Perdoceo Education Corporation $PRDO
Nov -14
PRDO or EDU: Which Is the Better Value Stock Right Now?
Nov -06
Down 13.4% in 4 Weeks, Here's Why Perdoceo Education (PRDO) Looks Ripe for a Turnaround
Nov -06
Perdoceo Education Corporation (PRDO) Q3 2025 Earnings Call Prepared Remarks Transcript
Nov -05
Perdoceo Education (PRDO) Surpasses Q3 Earnings and Revenue Estimates
Nov -04
Perdoceo Education Corporation Reports Third Quarter and Year to Date 2025 Results
Nov -04
Colorado Technical University's 9.33% growth is driven by increasing demand for online education, strategic partnerships with employers, and expansion of program offerings in high-growth fields such as healthcare and technology. Additionally, Perdoceo Education Corporation's focus on student outcomes, career services, and flexible learning models contribute to the university's growth.
American InterContinental University System's 9.33% growth is driven by increasing demand for online education, strategic partnerships, and expansion of degree programs. Additionally, Perdoceo Education Corporation's focus on student outcomes, career services, and employer partnerships contribute to the growth. Furthermore, the system's flexible and affordable tuition models, as well as its strong brand recognition, attract a diverse student body.
Perdoceo Education Corporation's Corporate and Other segment growth of 10.27% is driven by strategic cost savings initiatives, operational efficiencies, and investments in digital marketing, leading to increased brand awareness and enrollment growth in its online education platforms.
A provider of post-secondary education for students seeking careers in the automotive, diesel, industrial, and transportation industries.
A provider of post-secondary education for students seeking careers in the automotive, diesel, industrial, and transportation industries.
A provider of post-secondary education for students seeking careers in healthcare, dental, and nursing industries.
A provider of post-secondary education for students seeking careers in welding and HVAC industries.
A provider of post-secondary education for students seeking careers in healthcare, dental, and nursing industries.
Perdoceo Education Corporation faces moderate threat from substitutes, as students have alternative options for online education and vocational training. However, the company's strong brand reputation and quality of education mitigate this threat to some extent.
Perdoceo Education Corporation has a diverse student base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and quality of education make it difficult for customers to negotiate prices or demand better services.
Perdoceo Education Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term contracts with suppliers also mitigate this threat.
Perdoceo Education Corporation operates in a highly regulated industry, which creates barriers to entry for new entrants. The company's strong brand reputation, quality of education, and established relationships with employers also make it difficult for new entrants to gain traction.
Perdoceo Education Corporation operates in a highly competitive industry, with several established players competing for market share. The company's strong brand reputation and quality of education help it to differentiate itself from competitors, but the intensity of rivalry remains high.
| Value | |
|---|---|
| Debt Weight | 3.11% |
| Debt Cost | 3.95% |
| Equity Weight | 96.89% |
| Equity Cost | 8.54% |
| WACC | 8.39% |
| Leverage | 3.21% |
Value: 5.7
Growth: 5.6
Quality: 8.6
Yield: 2.0
Momentum: 10.0
Volatility: 6.0
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Volatility: 2.0
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