PRDO
9/9 ScorePerdoceo Education Corporation
Analysis Date: February 2, 2026
Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. The company operates in two segments, Colorado Technical University and American InterContinental University. It offers academic programs in the career-oriented disciplines of business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity, and criminal justice, as well as business studies, information technologies, education, and health sciences. The company also operates intellipath, a personalized learning platform; and a mobile application and two-way messaging platform. As of December 31, 2021, it had a total student enrollment of approximately 40,400 students. The company was formerly known as Career Education Corporation and changed its name to Perdoceo Education Corporation in January 2020. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois.
Buffettology Criteria
All 9 of 9 criteria passed
High ROE
Return on Equity > 12%
Value: 16.3%
High ROIC
Return on Invested Capital > 9%
Value: 12.9%
Cash Machine
FCF / Assets > 5%
Value: 17.4%
Fair Valuation
Earnings Yield > 3.5%
Value: 7.7%
Share Buybacks
Share Count is Dropping
Value: -1.3%
Defensible Moat
Gross Profit Margin > 40%
Value: 58.2%
Simple Business
Not in a speculative sector (e.g., Biotech)
Value: Consumer Defensive
Conservative Debt
Debt to Equity < 1.5
Value: 0.06x
Consistent Growth
5-Year Growth is Positive
Value: 37.8%
Analysis Summary
This looks like a company with a robust engine, showing strong returns on invested capital and a healthy free cash flow yield. The consistent growth, coupled with a well-defensible moat in a simple consumer defensive business, suggests a durable competitive advantage. With conservative debt levels and a reasonable valuation, it's certainly worth a closer look for the long haul.
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