Perdoceo Education Corporation Common Stock (PRDO)
Fast GrowerFairStock Score: 73/100 — STEADY
Key Financials
| Current Price | $34.01 |
| Market Cap | $2.1B |
| P/E Ratio | 12.98 |
| ROE | 17.27% |
| Dividend Yield | 1.75% |
| Sector | Consumer Defensive |
Strengths
- Generates $167 million in annual free cash flow (8.0% yield on market cap)
- Solid return on equity of 16.6% above cost of capital
- Conservative balance sheet with debt-to-equity of just 0.12, providing financial flexibility
- Altman Z-Score of 6.2 confirms minimal bankruptcy risk and strong solvency
- Revenue growth of 20.0% demonstrates strong top-line momentum
AI Analysis
Perdoceo Education Corporation Common Stock is a small-cap consumer defensive company valued at $2.1 billion. The business generates $846 million in annual revenue with a 4.2% net margin and $167 million in free cash flow. From a quality standpoint, Perdoceo shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 6.2 confirms fortress-level solvency. On valuation, the stock is attractively valued at 13.8x earnings, with trades above its Graham Number with a negative 15% margin. Growth dynamics show revenue growing at 20.0% and profit growth of 12.3%. The 1.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.
Bull Case
Perdoceo's 20% revenue growth trajectory could accelerate as it captures additional market share in the consumer defensive sector. With $167 million in annual free cash flow (8.0% 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