Perdoceo Education Corp. (PRDO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Stride, Inc.

Graham Holdings Co.

Adtalem Global Education, Inc.

Strategic Education, Inc.

Mister Car Wash, Inc.

UniFirst Corp.

Driven Brands Holdings, Inc.

Perdoceo Education Corp.

TripAdvisor, Inc.

Sonder Holdings, Inc.

Peloton Interactive, Inc.

Why is Perdoceo Education Corp. ?

High Management Efficiency with a high ROE of 17.18%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 4.24% over the last 5 years

INTEREST(HY) At USD 3.17 MM has Grown at 1,810.84%
INTEREST COVERAGE RATIO(Q) Lowest at 3,264.43
RAW MATERIAL COST(Y) Grown by 6.51% (YoY)

With ROE of 16.45%, it has a attractive valuation with a 2.86 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 42.34%, its profits have risen by 6% ; the PEG ratio of the company is 2.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 42.34% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Perdoceo Education Corp. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Perdoceo Education Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Perdoceo Education Corp.

42.34%

1.64

37.06%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.24%

EBIT Growth (5y)

6.43%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

0.78

Tax Ratio

25.97%

Dividend Payout Ratio

23.17%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

71.48%

ROE (avg)

17.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.86

EV to EBIT

10.98

EV to EBITDA

9.05

EV to Capital Employed

6.32

EV to Sales

2.54

PEG Ratio

2.10

Dividend Yield

1.37%

ROCE (Latest)

57.58%

ROE (Latest)

16.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 225.24 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 64.32 times

DEBTORS TURNOVER RATIO(HY)

Highest at 28.03 times

DIVIDEND PER SHARE(HY)

Highest at USD 28.03

-12What is not working for the Company

INTEREST(HY)

At USD 3.17 MM has Grown at 1,810.84%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,264.43

RAW MATERIAL COST(Y)

Grown by 6.51% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 24.37 %

Here's what is working for Perdoceo Education Corp.

Operating Cash Flow

Highest at USD 225.24 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Highest at 64.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 28.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 28.03

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Perdoceo Education Corp.

Interest

At USD 3.17 MM has Grown at 1,810.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 3,264.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 24.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 6.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income