Will Laureate Education continue to eat your money?

My talk will sum up Laureate Education. I will evaluate if Laureate Education shares are sensibly priced going into April and whether management should be worried. In defiance of sluggish performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2020. The latest agitation may also be a sign of long running up-swing for enterprise management. What is Laureate Education Target Price Odds to finish over Current Price? In regard to normal probability distribution, the odds of Laureate Education to move above current price in 30 days from now is about 98.0%. The Laureate Education probability density function shows the probability of Laureate Education Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, the stock has beta coefficient of 1.152 indicating as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Laureate Education will likely underperform. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. Laureate Education is significantly underperforming Russell 2000 .
Published over a year ago
View all stories for Laureate Education | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

Laureate Education currently holds 2.17 B in liabilities with Debt to Equity (D/E) ratio of 76.3 indicating the stock may have difficulties to generate enough cash to satisfy its financial obligations. This firm has Current Ratio of 0.8 indicating that it has a negative working capital and may not be able to pay financial obligations when they are due. The firm dividends can provide a clue to current valuation of the stock. The entity is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Let me take a closer look at Laureate Education Number of Shares Shorted. Based on recorded statements Laureate Education has 3.55 M of outstending shares currently sold short by investors. This is 43.11% lower than that of the Consumer Defensive sector, and 74.74% higher than that of Education & Training Services industry, The Number of Shares Shorted for all stocks is 24.55% higher than Laureate Education.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Laureate Education income statement, its balance sheet, and the statement of cash flows. Potential Laureate Education investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Laureate Education investors may use each financial statement separately, they are all related. The changes in Laureate Education's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Laureate Education's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Laureate Education fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Laureate Education performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Laureate Education shares is the value that is considered the true value of the share. If the intrinsic value of Laureate is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Laureate Education. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of Laureate Education earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Laureate Education dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Laureate one year expected dividend income is about USD0.46 per share.
Investing in stocks that pay dividends, such as stock of Laureate Education, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Laureate Education must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Laureate Education. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Laureate Education's Liquidity

Laureate Education financial leverage refers to using borrowed capital as a funding source to finance Laureate Education ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Laureate Education financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Laureate Education's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Laureate Education's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Laureate Education's total debt and its cash.

Detailed Outlook On Laureate Education

The company has beta of 0.35. As returns on market increase, Laureate Education returns are expected to increase less than the market. However, during bear market, the loss on holding Laureate Education will be expected to be smaller as well. The big decline in price over the last few months for Laureate Educationmay encourage investors to take a closer look at the firm as it closed today at a share price of 10.05 on 819,681 in trading volume. The company executives failed to add value to investors and positioning the firm supply of money to exploit market volatility in February. However, diversifying your holdings with Laureate Education or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 7.64. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Laureate Education partners. Laureate Education preserves 3.55 m of number of shares shorted. Laureate Education is selling at 10.38. That is 3.53 percent decrease. Day high is 10.77. Laureate Education Average Assets is decreasing over the last 6 years. The previous year value of Laureate Education Average Assets was 6,824,952,516. Moreover, Laureate Education Revenue Per Employee is relatively stable at the moment.
All things considered, our present buy vs. sell advice on enterprise is Cautious Hold. We believe Laureate Education is under valued with average chance of distress for the next two years.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Laureate Education. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com