APEIAmerican Public Education, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.8×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 12% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is APEI?
American Public Education, Inc. earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 9.6%
Operating margin · Education & Training Services median 13% · 12 months to Q2 2026
- Cash conversion
- 1.76×
Cash conversion · 2.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +1.1%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 7.7% |
| FY2021 | 7.2% |
| FY2022 | −23% |
| FY2023 | −8.0% |
| FY2024 | 5.3% |
| FY2025 | 7.4% |
Details›
- Gross margin12 months to Q2 2026
- 56%
- Operating margin12 months to Q2 2026
- 9.6%
- Net margin12 months to Q2 2026
- 6.8%
- Free cash flow margin
- 10%
- Revenue, trailing twelve months
- $668M
- Free cash flow, trailing twelve months
- $70M
- Net income, trailing twelve months
- $46M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Education & Training Services
Ranks #13 of 15 by RyuScore