PRDOPerdoceo Education Corporation
Is the business good?
A genuinely good business: earnings fully cash-backed (1.4×) 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.
Margin-driven, fat margins on slower asset turns. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PRDO?
Perdoceo Education Corporation earns 56% 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% · 47 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Education & Training Services median 13% · 12 months to Q2 2026
- Cash conversion
- 1.40×
Cash conversion · 1.55× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 22% |
| FY2022 | 19% |
| FY2023 | 21% |
| FY2024 | 26% |
| FY2025 | 23% |
Details›
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 21%
- Free cash flow margin
- 25%
- Revenue, trailing twelve months
- $859M
- Free cash flow, trailing twelve months
- $218M
- Net income, trailing twelve months
- $177M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 56%
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 #4 of 15 by RyuScore