Laureate Education Inc. Common Stock (LAUR)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. Laureate is a focused higher-education operator in Mexico, Peru, and the United States. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $615.9M and net income $137.1M, versus revenue $524.2M and net income $95.1M in fiscal Q2 2025. That is roughly 17.5% revenue growth and 44% profit growth, with a 22.26% net margin in the latest quarter. FairStock's numbers show ROE of 29.32% and ROCE of 12.53%, a Piotroski F-Score of 8/9, and an Altman Z-Score of 3.26, so the operating momentum and financial health look sound. Debt/equity is 0.64, not alarming but not fortress-like. The moat, if any, comes from accredited degree programs and campus or online stickiness; the returns suggest some advantage, though not a wide one. Growth is uneven: fiscal Q1 2026, the quarter ended 2026-03-31, showed a $21.6M net loss, while FY2025 net income was $281.6M versus $296.5M in FY2024. Valuation is the rub. At $39.53 on 2026-10-13, the P/E is 17.89 and P/B is 4.77. The FairStock Graham Number is $20.30, implying a -94.73% margin of safety, so the price is far above asset-based value. A 5.3% FCF yield and 10.40 EV/EBITDA are reasonable, and a PEG of 0.40 is attractive if growth persists. FairStock scores it 81/100 and classifies it as a Lynch STALWART, citing 10.0% profit and 11.9% revenue growth over four years. I see a good business, but not a Graham bargain.

In plain English: Laureate runs universities and higher-education programs in Mexico, Peru, and the United States. The latest quarter showed solid sales and profit growth, and the business looks financially healthy. The stock looks expensive compared with the company's asset value, though less so compared with its recent profits.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer