Grand Canyon Education Inc. Common Stock (LOPE)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

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

I approach Grand Canyon Education as a business first and a stock second. It sells technology, academic, and counseling services to educational institutions, a business I can understand. The economics look attractive: FairStock calculates return on equity of 30.98%, return on capital employed of 20.43%, and debt-to-equity of just 0.16, while the Altman Z-Score of 15.00 suggests a fortress-like balance sheet. It generated $242.5M of trailing free cash flow, a 5.9% yield against the $4.1B market cap at the 2026-10-13 close. Recent results are decent: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $264.0M, net income $45.9M, and diluted EPS $1.75, up from $247.5M, $41.5M, and $1.48 in fiscal Q2 2025, the quarter ended 2025-06-30. Yet the long record is uneven. FairStock classifies it as a SLOW GROWER — Shrinking, with profit falling -3.4% a year over five years and revenue growing 5.6%. In FY2025, ended 2025-12-31, net income was $216.2M, down from $226.2M in FY2024, ended 2024-12-31. Valuation is the rub. At the 2026-10-13 close of $158.84, the P/E is 19.21, P/B is 6.14, PEG is 1.85, EV/EBITDA is 11.35, and FairStock's Graham Number is $68.91, a -130.50% margin of safety. That is not a Graham bargain. I see quality without a clear discount; the price already assumes better growth than the past five years delivered.

In plain English: Grand Canyon Education helps colleges run their programs by providing technology, classes, and student support services. The company makes good profits, uses little debt, and produces steady cash, but growth has been slow and uneven. At the recent price, the shares look fair to expensive compared with the company's earnings and cash flow.

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