# Perdoceo Education (PRDO.US)

Canonical: https://gigainvestors.com/s/PRDO

Analysis as of: 2026-10-16T07:31:18.758Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $33.87 per share; close as of 2026-10-15.

Estimated value: low $33.40 per share, central $38.01 per share, high $44.14 per share. Buy at or below the central value $38.01 per share. Valuation as of 2026-10-16T07:31:18.758Z; scenarios are not confidence intervals.

Expected annual return: 10.9% at the stated quote. About 10.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.32×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.06×

- FY2018: 0.12×

- FY2019: 0.14×

- FY2020: 0.21×

- FY2021: 0.22×

- FY2022: 0.19×

- FY2023: 0.21×

- FY2024: 0.26×

- FY2025: 0.23×

- LTM to Jun 2026: 0.25×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- Recent gross margin fell 10.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 71.7%

- ROIC, second-lowest year: 20.1%

- Typical minus recent gross margin: 10.8 pp

- Typical gross margin (annual median): 82.0%

- Recent gross margin (lower of latest and 3-year median): 71.2%

- Years with nonpositive capital: 1

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: 36.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 20.1%

- FY2018: 56.9%

- FY2019: 57.6%

- FY2020: >100%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: 48.3%

- FY2025: 85.9%

- LTM to Jun 2026: 14.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $820M

- Net income, five-year total: $728M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.4 pp

- Working capital / revenue, final three-year average: 3.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.07×

- FY2023: 1.07×

- FY2024: 1.07×

- FY2025: 1.21×

- LTM to Jun 2026: 1.17×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.1% vs 85.9%

- Per-share earnings: -0.27 to 2.19 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -1.5%

- Market cap gain: $1.1B

- Cumulative retained earnings: $795M

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -1.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $2.47

- Per-share value, starting three-year median: -$0.27

- Per-share value, ending three-year median: $2.19

- Buybacks concentrated in cheaper years (correlation): 0.79

- Average buyback yield: 1.6%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $326M

- Cumulative net income, 10 years: $859M

- ROIC, first three-year median: 20.1%

- ROIC, last three-year median: 85.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.27

- FY2017: -$0.46

- FY2018: $0.77

- FY2019: $0.97

- FY2020: $1.74

- FY2021: $1.55

- FY2022: $1.39

- FY2023: $2.18

- FY2024: $2.19

- FY2025: $2.42

### accounting: pass

- Sloan accruals: -5.1%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 5.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.41×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.35×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.4%

- FY2017: -2.3%

- FY2018: -0.4%

- FY2019: -0.5%

- FY2020: -7.7%

- FY2021: -9.6%

- FY2022: -5.5%

- FY2023: 3.5%

- FY2024: -1.1%

- FY2025: -5.1%

## Holders

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to shrink 0.5% a year for ten years · sales +1.5%

Story as of 2026-10-16T09:59:26.170Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.5% a year for ten years

- 2025-08-13: PRDO Q2 Deep Dive: Enrollment Growth and St. Augustine Acquisition Drive Guidance Raise ([finance.yahoo.com](https://finance.yahoo.com/news/prdo-q2-deep-dive-enrollment-031726181.html))

### Sales · FY2025–2026

sales +1.5%; source https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm; observed 2026-02-19.

- FY2017: $596M 

- FY2018: $581M 

- FY2019: $628M 

- FY2020: $687M 

- FY2021: $693M 

- FY2022: $695M 

- FY2023: $710M 

- FY2024: $681M 

- FY2025: $846M 

- FY2026: $859M 

### Gross margin · FY2026

gross margin 71.2%; source https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm; observed 2026-02-19.

- FY2017: 76.0% 

- FY2018: 81.1% 

- FY2019: 83.8% 

- FY2020: 83.7% 

- FY2021: 84.3% 

- FY2022: 83.2% 

- FY2023: 81.6% 

- FY2024: 82.3% 

- FY2025: 71.7% 

- FY2026: 71.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in education & training services; annual sales are USD 846.1 million.

- Source: https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm (filed 2026-02-19); FY2025: revenue 846096000; grossProfit 606929000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PRDO.US: Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. It operates through three segments: Colorado Technical University (CTU), The American InterContinental University System (AIUS), and University of St. Augustine for Health Sciences (USAHS). The CTU segment 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. Its AIUS segment provides academic programs in the career-oriented disciplines of business studies, information technologies, education, and behavioral sciences. The USAHS segment offers graduate health sciences degrees in physical therapy, occupational therapy, speech language therapy, and nursing, as well as continuing education programs. The company also provides non-degree seeking and professional development programs. In addition, it operates intellipath, a learning platform, as well as a mobile application and two-way messaging platform. 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 headquartered in Schaumburg, Illinois.

### Why customers stay

Margins ranged from 71.7% to 82.3% during 2023–25; it earns 71.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 81.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 82.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 71.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2017,0.20146730346668604],[2018,0.5691727323586399],[2019,0.5758839722324474],[2020,1.4338009468345985],[2021,2.862726658181395],[2022,12.469323558503708],[2023,4.785334060148487],[2024,0.48335240858152523],[2025,0.8587927102883892],[2026,0.14743166470140537]]; median 0.7173383412604183. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 0.4% of cash earnings; paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 0; upkeep 6732000; owner earnings 57843000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 0; upkeep 5174000; owner earnings 73953000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 0; upkeep 9768000; cash acquisitions 39819000; owner earnings 129282000. Growth capex plus acquisitions / owner earnings = 0.30800111384415463.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 0; upkeep 10453000; cash acquisitions 57143000; owner earnings 115950000. Growth capex plus acquisitions / owner earnings = 0.4928244933160845.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 0; upkeep 12620000; cash acquisitions 84308000; owner earnings 102981000. Growth capex plus acquisitions / owner earnings = 0.8186752896165312.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: growth capex 0; upkeep 6411000; cash acquisitions 6000000; owner earnings 158128000. Growth capex plus acquisitions / owner earnings = 0.03794394414651422.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 0; upkeep 4625000; cash acquisitions 137766000; owner earnings 157610000. Growth capex plus acquisitions / owner earnings = 0.8740942833576549.

- Source: https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm (filed 2026-02-19); FY2025: growth capex 0; upkeep 8576000; cash acquisitions 854000; owner earnings 192965000. Growth capex plus acquisitions / owner earnings = 0.004425673049516752.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,14417000],[2024,31699000],[2025,36855000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm (filed 2026-02-19); FY2025: cash repurchases 120793000 USD.

### Are managers owners

Insiders own 1.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PRDO.US SharesStats.PercentInsiders = 1.194 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 0.5% yearly over ten years; actual growth was 11.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate -0.02046673781827902. Price 33.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9531670764547477 → FY2025 2.9168178245359453. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $7.19 per share

- 2016-11: $9.99 per share

- 2016-12: $10.09 per share

- 2017-01: $9.77 per share

- 2017-02: $8.33 per share

- 2017-03: $8.70 per share

- 2017-04: $10.15 per share

- 2017-05: $9.44 per share

- 2017-06: $9.60 per share

- 2017-07: $8.41 per share

- 2017-08: $9.61 per share

- 2017-09: $10.39 per share

- 2017-10: $10.68 per share

- 2017-11: $13.27 per share

- 2017-12: $12.08 per share

- 2018-01: $12.40 per share

- 2018-02: $13.23 per share

- 2018-03: $13.14 per share

- 2018-04: $12.97 per share

- 2018-05: $15.39 per share

- 2018-06: $16.17 per share

- 2018-07: $18.40 per share

- 2018-08: $15.95 per share

- 2018-09: $14.93 per share

- 2018-10: $14.38 per share

- 2018-11: $13.49 per share

- 2018-12: $11.42 per share

- 2019-01: $12.91 per share

- 2019-02: $16.62 per share

- 2019-03: $16.52 per share

- 2019-04: $18.15 per share

- 2019-05: $18.77 per share

- 2019-06: $19.07 per share

- 2019-07: $18.96 per share

- 2019-08: $20.51 per share

- 2019-09: $15.89 per share

- 2019-10: $14.16 per share

- 2019-11: $16.68 per share

- 2019-12: $18.39 per share

- 2020-01: $17.78 per share

- 2020-02: $14.93 per share

- 2020-03: $10.79 per share

- 2020-04: $13.00 per share

- 2020-05: $16.28 per share

- 2020-06: $15.93 per share

- 2020-07: $14.40 per share

- 2020-08: $14.37 per share

- 2020-09: $12.24 per share

- 2020-10: $11.29 per share

- 2020-11: $11.34 per share

- 2020-12: $12.63 per share

- 2021-01: $11.83 per share

- 2021-02: $12.87 per share

- 2021-03: $11.96 per share

- 2021-04: $11.66 per share

- 2021-05: $12.19 per share

- 2021-06: $12.27 per share

- 2021-07: $11.86 per share

- 2021-08: $10.98 per share

- 2021-09: $10.56 per share

- 2021-10: $10.62 per share

- 2021-11: $9.85 per share

- 2021-12: $11.76 per share

- 2022-01: $11.02 per share

- 2022-02: $10.47 per share

- 2022-03: $11.48 per share

- 2022-04: $11.18 per share

- 2022-05: $10.91 per share

- 2022-06: $11.78 per share

- 2022-07: $13.70 per share

- 2022-08: $11.58 per share

- 2022-09: $10.30 per share

- 2022-10: $11.43 per share

- 2022-11: $14.35 per share

- 2022-12: $13.90 per share

- 2023-01: $14.97 per share

- 2023-02: $13.79 per share

- 2023-03: $13.43 per share

- 2023-04: $12.98 per share

- 2023-05: $11.79 per share

- 2023-06: $12.27 per share

- 2023-07: $13.35 per share

- 2023-08: $16.57 per share

- 2023-09: $17.10 per share

- 2023-10: $18.09 per share

- 2023-11: $17.42 per share

- 2023-12: $17.56 per share

- 2024-01: $18.10 per share

- 2024-02: $17.81 per share

- 2024-03: $17.56 per share

- 2024-04: $18.30 per share

- 2024-05: $22.50 per share

- 2024-06: $21.42 per share

- 2024-07: $24.79 per share

- 2024-08: $22.44 per share

- 2024-09: $22.24 per share

- 2024-10: $22.35 per share

- 2024-11: $27.45 per share

- 2024-12: $26.47 per share

- 2025-01: $28.78 per share

- 2025-02: $25.60 per share

- 2025-03: $25.18 per share

- 2025-04: $25.12 per share

- 2025-05: $34.04 per share

- 2025-06: $32.69 per share

- 2025-07: $28.78 per share

- 2025-08: $32.74 per share

- 2025-09: $37.66 per share

- 2025-10: $31.76 per share

- 2025-11: $27.96 per share

- 2025-12: $29.33 per share

- 2026-01: $32.03 per share

- 2026-02: $33.35 per share

- 2026-03: $37.21 per share

- 2026-04: $33.94 per share

- 2026-05: $32.38 per share

- 2026-06: $32.00 per share

- 2026-07: $31.81 per share

- 2026-08: $33.24 per share

- 2026-09: $30.94 per share

- 2026-10: $33.87 per share

## Annual estimated value (USD per share)

- FY2019: low $7.32 per share, central $8.32 per share, high $9.67 per share

- FY2020: low $10.49 per share, central $11.94 per share, high $13.86 per share

- FY2021: low $12.59 per share, central $14.33 per share, high $16.64 per share

- FY2022: low $16.31 per share, central $18.55 per share, high $21.55 per share

- FY2023: low $19.14 per share, central $21.78 per share, high $25.30 per share

- FY2024: low $20.83 per share, central $23.70 per share, high $27.53 per share

- FY2025: low $31.13 per share, central $35.43 per share, high $41.14 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1046568/000119312526059331/prdo-20251231.htm); period 2025-12-31, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.