Perdoceo Beneish M Score

PRDO
 Stock
  

USD 11.53  0.14  1.20%   

This module uses fundamental data of Perdoceo Education to approximate the value of its Beneish M Score. Perdoceo Education M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Perdoceo Education Piotroski F Score and Perdoceo Education Altman Z Score analysis.
  
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Long Term Debt to Equity is expected to rise to 0.000304 this year. Debt to Equity Ratio is expected to rise to 0.11 this year. Perdoceo Education Cash and Equivalents Turnover is quite stable at the moment as compared to the past year. The company's current value of Cash and Equivalents Turnover is estimated at 1.57. Return on Investment is expected to rise to 26.66 this year, although the value of Inventory Turnover will most likely fall to 116.34.
At this time, it appears that Perdoceo Education Corp is an unlikely manipulator. The earnings manipulation may begin if Perdoceo Education's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Perdoceo Education executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Perdoceo Education's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.39
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense CoverageN/AFocus
Gross Margin Strengs0.89Focus
Accruals FactorN/AFocus
Depreciation ResistanceN/AFocus
Net Sales Growth1.36Focus
Financial Leverage ConditionN/AFocus

Perdoceo Education Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Perdoceo Education's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues945.4 M693 M
Significantly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations206.2 M191.1 M
Significantly Up
Increasing
Stable
Total Assets911.4 M847.4 M
Significantly Up
Decreasing
Slightly volatile
Total Liabilities278 M197.3 M
Significantly Up
Decreasing
Slightly volatile
Current Assets533.7 M554.5 M
Sufficiently Down
Decreasing
Stable
Current Liabilities193.2 M140.2 M
Significantly Up
Decreasing
Slightly volatile
Operating Income160.8 M149 M
Significantly Up
Increasing
Slightly volatile
Gross Margin74.8484.3091
Fairly Down
Increasing
Slightly volatile

Perdoceo Education Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Perdoceo Education's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Perdoceo Education in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Perdoceo Education's degree of accounting gimmicks and manipulations.

About Perdoceo Education Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Earnings Before Interest Taxes and Depreciation Amortization EBITDA

174.11 Million

Share
Perdoceo Education Earnings Before Interest Taxes and Depreciation Amortization EBITDA are quite stable at the moment as compared to the past year. The company's current value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA is estimated at 174.11 Million

Perdoceo Education Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Perdoceo Education. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues596.43 M581.3 M627.7 M687.31 M693.03 M945.35 M
Total Assets447.1 M482.49 M599.15 M721.52 M847.43 M911.42 M
Current Assets210.72 M269.45 M360.38 M467.06 M554.45 M533.69 M
Total Liabilities150.89 M127.29 M167.85 M165.61 M197.32 M277.97 M
Current Liabilities112.69 M97.05 M103.81 M103.81 M140.24 M193.2 M
Operating Income34.14 M71.3 M86.46 M142.93 M149.02 M160.78 M
Net Cash Flow from Operations(21.79 M)56.99 M73.08 M179.96 M191.12 M206.2 M
Gross Margin75.9781.0983.7683.7484.3174.84

About Perdoceo Education Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Perdoceo Education Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Perdoceo Education using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Perdoceo Education Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Perdoceo Education Corporation provides postsecondary education through online, campus-based, and blended learning programs in the United States. Perdoceo Education Corporation was incorporated in 1994 and is based in Schaumburg, Illinois. Perdoceo Education operates under Education Training Services classification in the United States and is traded on NASDAQ Exchange. It employs 2040 people.

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Please check Perdoceo Education Piotroski F Score and Perdoceo Education Altman Z Score analysis. Note that the Perdoceo Education Corp information on this page should be used as a complementary analysis to other Perdoceo Education's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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Is Perdoceo Education's industry 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 YOY
0.07
Market Capitalization
802.7 M
Quarterly Revenue Growth YOY
-0.004
Return On Assets
0.12
Return On Equity
0.18
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 Perdoceo Education value 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.