Grand Canyon Education, Inc. Fundamental Analysis (NASDAQ: LOPE)
Grand Canyon Education, Inc. Fundamental Analysis (NASDAQ: LOPE)
Grand Canyon Education, Inc. (NASDAQ: LOPE) shows strong financial fundamentals with a PE ratio of 12.47, profit margin of 21.85%, and ROE of 36.47%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 7.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LOPE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLOPE demonstrates superior asset utilization.
Valuation Score
ExcellentLOPE trades at attractive valuation levels.
Growth Score
ModerateLOPE shows steady but slowing expansion.
Financial Health Score
ExcellentLOPE maintains a strong and stable balance sheet.
Profitability Score
ExcellentLOPE achieves industry-leading margins.
Key Financial Metrics
Is LOPE Expensive or Cheap?
P/E Ratio
LOPE trades at 12.47 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, LOPE's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Grand Canyon Education, Inc. at 4.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.12 times EBITDA. This is generally considered low.
How Well Does LOPE Make Money?
Net Profit Margin
For every $100 in sales, Grand Canyon Education, Inc. keeps $21.85 as profit after all expenses.
Operating Margin
Core operations generate 27.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $36.47 in profit for every $100 of shareholder equity.
ROA
Grand Canyon Education, Inc. generates $28.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Grand Canyon Education, Inc. generates strong operating cash flow of $299.87M, reflecting robust business health.
Free Cash Flow
Grand Canyon Education, Inc. generates strong free cash flow of $262.86M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.30 in free cash annually.
FCF Yield
LOPE converts 8.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.64
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.36
vs 25 benchmark
ROA
Return on assets percentage
0.28
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How LOPE Stacks Against Its Sector Peers
| Metric | LOPE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.47 | 21.78 | Better (Cheaper) |
| ROE | 36.47% | 682.00% | Weak |
| Net Margin | 21.85% | -2331.00% (disorted) | Strong |
| Debt/Equity | 0.18 | 16.62 | Strong (Low Leverage) |
| Current Ratio | 2.64 | 2.30 | Strong Liquidity |
| ROA | 28.05% | 2741.00% | Weak |
LOPE outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Grand Canyon Education, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
120.48%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
41.42%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
49.01%
Industry Style: Defensive, Dividend, Low Volatility
High Growth