★PRDO
Perdoceo Education Corporation · Education & Training Services
FCF$225mC
Rev+24.2%A-
D/E0.12A-
P/E13.6xA-
PEG0.75A-
1Y Target$38.48Model estimate · no analyst coverage
5Y Target$48.58Compound horizon
10Y Target$62.30Long-dated conviction
FCF$225mTTMCFCF $225m — modest; watch for margin expansion
Rev+24.2%TTM YoYA-Revenue +24.2% — strong growth, well above S&P median (~7%)
D/E0.12A-D/E 0.12 — less debt than most Consumer Defensive peers (≈25th pctile)
P/E13.6xA-P/E 13.6 — cheaper than most Consumer Defensive peers (≈25th pctile)
PEG0.75A-PEG 0.75 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 81
Quality0.89
Growth0.87
Value0.69
Why this score
- Buying back stock
- Raising its dividend
- Durable high returns
Entry · Margin of safety
52-week rangeNear 52-week high7% off the 12-month high vs DCF fair value54% belowest. fair value ~$77
Quality signals · context only
ROIC15.8% · A-return on invested capital — not score-weighted
Why now
The bull case rests on Colorado Technical University’s (CTU) dominance in high‑margin, career‑oriented tech and healthcare programs, which is fueling 24.2% revenue growth YoY, while the stock trades at a modest 13.4 P/E and a sub‑1 0.74 PEG—a rare combination that translates into a free‑cash‑flow yield of roughly 10% ($225 m on a $2.2 b market cap). This enrollment‑driven engine will keep earnings compounding as demand for cybersecurity, nursing and data‑science credentials expands.
Moat
CTU’s curriculum lock‑in creates a durable edge: students pursuing accredited, stackable credentials in nursing, cybersecurity and project management face high switching costs because credits are tied to industry licensure and employer partnerships. The low debt‑to‑equity ratio of 0.12 gives PRDO financial flexibility to reinvest in technology platforms, while a 17% ROE reflects pricing power derived from its niche positioning in high‑demand health‑tech education that competitors cannot replicate quickly.
Risk
The bear case hinges on enrollment volatility—if the post‑secondary market cools, the 24.2% growth rate could stall, compressing the 19.9% profit margin and eroding the free‑cash‑flow cushion. With only one analyst covering the stock and a consensus target of $44, any miss on enrollment or margin expectations would force the price back toward the 52‑week low of $26.66, confirming the downside thesis.
Horizon
1-3 yr $38.48 (structural (no analyst coverage)) — multiple re-rating thesis requires a catalyst. 5 yr $48.58 at ~6% CAGR — dividend + buyback compounding. 10 yr $62.30 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See
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Position sizing · PRDO
Position size
$1,995
4.0% of portfolio
Stop price
$26.72
25% below $35.63
$ at risk if stopped
$498.82
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Perdoceo Education Corporation (PRDO): score, valuation & FAQ
Perdoceo Education Corporation (PRDO) is a Education & Training Services company that scores 81 out of 100 on the Bull Rankings quality-growth model — a strong reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-), D/E (A-) and P/E (A-). On valuation, PRDO sits about 54% below our discounted-cash-flow fair value (a margin of safety).
Is PRDO a good stock to buy?
Bull Rankings scores PRDO 81 out of 100 on its quality-growth model, which is a strong reading. That is driven by Rev (A-), D/E (A-) and P/E (A-). A score is a quantitative screen of Perdoceo Education Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does PRDO score 81 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PRDO earns its highest marks on Rev (A-), D/E (A-) and P/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is PRDO overvalued or undervalued?
Based on $35.63, PRDO sits about 54% below our discounted-cash-flow fair value (a margin of safety). It trades at a 13.6x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in PRDO?
The bear case hinges on enrollment volatility—if the post‑secondary market cools, the 24.2% growth rate could stall, compressing the 19.9% profit margin and eroding the free‑cash‑flow cushion. With only one analyst covering the stock and a consensus target of $44, any miss on enrollment or margin expectations would force the price back toward the 52‑week low of $26.66, confirming the downside thesis.
New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.
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