Laureate Education Inc. Common Stock (LAUR)
Fast GrowerFairStock Score: 81/100 — HIGH CONVICTION
Key Financials
| Current Price | $32.12 |
| Market Cap | $4.5B |
| P/E Ratio | 17.18 |
| ROE | 28.82% |
| Dividend Yield | —% |
| Sector | Consumer Defensive |
Strengths
- Generates $332 million in annual free cash flow (7.3% yield on market cap)
- High return on equity of 26.4% demonstrating efficient capital deployment
- Conservative balance sheet with debt-to-equity of just 0.43, providing financial flexibility
- Healthy net profit margin of 10.1% showing consistent profitability
- Revenue growth of 27.9% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($19) with negative 69% margin of safety—limited downside protection
AI Analysis
Laureate Education Inc. Common Stock is a small-cap consumer defensive company valued at $4.5 billion. The business generates $1.7 billion in annual revenue with a 10.1% net margin and $332 million in free cash flow. From a quality standpoint, Laureate shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 3.4. On valuation, the stock is reasonably priced at 16.5x earnings, with trades above its Graham Number with a negative 69% margin. Growth dynamics show revenue growing at 27.9% and profit growth of 83.2%. Our composite FairStock Score of 81/100 reflects strong fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Laureate's 28% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $332 million in annual free cash flow (7.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer