Perdoceo Education Corporation (PRDO) Fundamental Analysis: Bull vs. Bear Case

PRDO

Perdoceo Education Corporation

Fundamental data last updated:September 2, 2026

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company profile

SECTOR

Consumer Defensive

industry

Education & Training Services

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform. As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.

VALUATION

P/E

12.15 Market Cap ($M USD)

$2.07B

Forward P/E

10.50 PEG

0.67 PRICE TO SALES

2.43 PRICE TO BOOK

2.07 EV / EBITDA

4.86 5-Year Average P/E

Free Cash Flow Yield

10.65%

DCF Value

$46.35

Graham Number

$31.31

Price to FCF

9.39 EV to FCF

5.84 Earnings Yield

8.23%

FCF Yield

10.65%

DIVIDEND

Yield

1.75%

Annual Payout

$0.58

Payout Ratio

22.29%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.72

Next Year EPS Growth Estimate

$3.15

Next Year Revenue Growth Estimate

$890.00M

Return on Equity (ROE)

17.21%

FREE CASH FLOW

Operating Margin

24.26%

Debt-to-Equity

0.11 Piotroski F-Score

7 Altman Z-Score

6.93 Return on Invested Capital (ROIC)

18.30%

Current Ratio

4.82 Quick Ratio

4.79 Net Debt to EBITDA

-2.95

Interest Coverage

32.87 Gross Profit margin

71.10%

FCF PER SHARE

$3.53

REVENUE PER SHARE

$13.68

Gainseekers Quantitative Analysis

Summary

PRDO’s valuation presents a compelling opportunity for value investors. Recent pricing indicated it traded below its DCF Value and Graham Number, suggesting potential undervaluation. The Forward P/E of 11.44 and an Earnings Yield of 7.56% highlight attractive growth prospects. With an Altman Z-score of 7.32, the company demonstrates robust financial health, minimizing bankruptcy risk. This combination of metrics suggests the market may be underestimating its intrinsic value.

AI Exposure / Tech Reliance

Operating in the Education & Training Services industry, PRDO is well-positioned to leverage AI and modern tech advancements. The sector's shift towards digital learning platforms aligns with PRDO's capabilities, potentially enhancing scalability and efficiency. This adaptability could fortify its competitive edge in a rapidly evolving landscape.

The Bull Case

For GARP investors, PRDO offers a tantalizing proposition. With a ROIC of 18.30% and a Piotroski F-Score of 7, the company showcases strong capital efficiency and financial health. Its Free Cash Flow Yield of 9.78% and robust operating margin of 24.26% underscore its pricing power and operational prowess. These metrics paint a picture of a company capable of generating substantial returns on invested capital, making it an attractive buy.

The Bear Case

Despite its strengths, PRDO faces structural risks. The Price/Sales ratio of 2.64 and Price/Book of 2.25 suggest it may be overvalued relative to its peers. Additionally, the stock's proximity to its 52-week high, just 6.83% away, raises concerns about technical overextension. Investors should be wary of potential corrections if growth expectations aren't met.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$44.00

Institutional Ownership %

1-Year Beta

0.72 Insider Buying % (6 Mo)

Distance to 52-Week High

16.35%

Distance to 52-Week Low

19.43%

EARNINGS SURPRISE %

7.14%

50-DAY SMA

$35.18

200-DAY SMA

$33.11

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.