Phoenix Education Partners Inc. Common Stock (PXED)
FairStock Score: 59/100 — STEADY
Key Financials
| Current Price | $24.82 |
| Market Cap | $895M |
| P/E Ratio | 11.39 |
| ROE | 25.32% |
| Dividend Yield | 3.13% |
| Sector | Consumer Defensive |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I approach this as a Graham-style value case: a real business, modest size, and a price that may already reflect some disappointment. Phoenix Education Partners, through University of Phoenix, sells online higher education to working adults and employer talent programs. That can be a decent niche, but online education is competitive, regulated, and dependent on enrollment trends. The financial statements show cash generation: trailing free cash flow of $131.2M, a 15.1% FCF yield on the $871.3M market cap at the 2026-10-13 close, ROE of 25.32%, ROCE of 16.93%, and a low D/E of 0.20. The balance sheet looks sturdy, with an Altman Z-Score of 3.10 and a Piotroski F-Score of 6/9. However, growth is the weak spot. Revenue growth is only 0.04% and profit growth is -27.25%. In fiscal Q3 2026, the quarter ended 2026-05-31, revenue was $271.8M and net income was $39.2M, or $1.01 per diluted share. In fiscal Q3 2025, the quarter ended 2025-05-31, revenue was $271.7M and net income was $53.8M, or $1.42 per diluted share. So the top line stalled while earnings fell sharply. Valuation is mixed. The P/E is 11.09 and EV/EBITDA is 5.45, which is not demanding. But the Graham Number is $21.01, below the $24.17 price, giving a margin of safety of -15.04%. The FairStock score is 59/100 and no Lynch category because only 0 years of filed results are available. I would want evidence that profit decline has stopped and enrollment is stable before calling this a classic bargain.
In plain English: Phoenix Education Partners runs the online University of Phoenix, mainly for working adults, plus programs that help employers match workers to jobs. The business is profitable, produces a lot of cash, and uses little debt, but recent sales were flat and profit fell. At the recent close, the stock looks reasonably priced next to earnings and cash flow, though not a clear bargain next to the company's accounting value.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-05-31) · fiscal Q2 2026 10-Q (period ended 2026-02-28) · fiscal Q1 2026 10-Q (period ended 2025-11-30) · fiscal Q3 2025 10-Q (period ended 2025-05-31)
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