Perdoceo Education Operating Margin vs. Return On Equity
| PRDO Stock | USD 27.38 0.34 1.23% |
Perdoceo Education Operating Profit Margin |
|
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.8164 |
|
|
For Perdoceo Education profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Perdoceo Education to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Perdoceo Education Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Perdoceo Education's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Perdoceo Education Corp over time as well as its relative position and ranking within its peers.
Perdoceo |
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Perdoceo Education. If investors know Perdoceo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Perdoceo Education listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.08) | Dividend Share 0.11 | Earnings Share 1.99 | Revenue Per Share 9.948 | Quarterly Revenue Growth (0.06) |
The market value of Perdoceo Education Corp is measured differently than its book value, which is the value of Perdoceo that is recorded on the company's balance sheet. Investors also form their own opinion of Perdoceo Education's value that differs from its market value or its book value, called intrinsic value, which is Perdoceo Education's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Perdoceo Education's market value can be influenced by many factors that don't directly affect Perdoceo Education's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Perdoceo Education's value and its price as these two are different measures arrived at by different means. Investors typically determine if Perdoceo Education is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Perdoceo Education's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Perdoceo Education Corp Return On Equity vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Perdoceo Education's current stock value. Our valuation model uses many indicators to compare Perdoceo Education value to that of its competitors to determine the firm's financial worth. Perdoceo Education Corp is considered to be number one stock in operating margin category among its peers. It also is considered to be number one stock in return on equity category among its peers reporting about 0.57 of Return On Equity per Operating Margin. The ratio of Operating Margin to Return On Equity for Perdoceo Education Corp is roughly 1.75 . At this time, Perdoceo Education's Operating Profit Margin is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Perdoceo Education's earnings, one of the primary drivers of an investment's value.Perdoceo Return On Equity vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Perdoceo Education |
| = | 0.26 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Perdoceo Education |
| = | 0.15 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Perdoceo Return On Equity Comparison
Perdoceo Education is currently under evaluation in return on equity category among its peers.
Perdoceo Education Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Perdoceo Education, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Perdoceo Education will eventually generate negative long term returns. The profitability progress is the general direction of Perdoceo Education's change in net profit over the period of time. It can combine multiple indicators of Perdoceo Education, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -666 K | -632.7 K | |
| Operating Income | 150.4 M | 158 M | |
| Income Before Tax | 192.1 M | 201.7 M | |
| Total Other Income Expense Net | 41.7 M | 43.8 M | |
| Net Income | 147.7 M | 155 M | |
| Income Tax Expense | 44.5 M | 25.1 M | |
| Net Income From Continuing Ops | 147.7 M | 155 M | |
| Non Operating Income Net Other | 5.8 M | 6.1 M | |
| Net Income Applicable To Common Shares | 110.2 M | 115.8 M | |
| Interest Income | 20 M | 21 M | |
| Net Interest Income | 19.6 M | 20.6 M | |
| Change To Netincome | 47.3 M | 58.1 M | |
| Net Income Per Share | 2.22 | 2.33 | |
| Income Quality | 0.76 | 0.72 | |
| Net Income Per E B T | 0.77 | 0.66 |
Perdoceo Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Perdoceo Education. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Perdoceo Education position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Perdoceo Education's important profitability drivers and their relationship over time.
Use Perdoceo Education in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Perdoceo Education position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Perdoceo Education will appreciate offsetting losses from the drop in the long position's value.Perdoceo Education Pair Trading
Perdoceo Education Corp Pair Trading Analysis
The ability to find closely correlated positions to Perdoceo Education could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Perdoceo Education when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Perdoceo Education - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Perdoceo Education Corp to buy it.
The correlation of Perdoceo Education is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Perdoceo Education moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Perdoceo Education Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Perdoceo Education can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Perdoceo Education position
In addition to having Perdoceo Education in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Large & Mid Caps ETFs Thematic Idea Now
Large & Mid Caps ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large & Mid Caps ETFs theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Large & Mid Caps ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Your Equity Center. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project Perdoceo Education's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Perdoceo Education Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Perdoceo Education's income statement, its balance sheet, and the statement of cash flows.