Latest news with #GrandCanyonEducation
Yahoo
6 days ago
- Business
- Yahoo
2 Cash-Producing Stocks for Long-Term Investors and 1 to Steer Clear Of
A company that generates cash isn't automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand. Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, here are two cash-producing companies that excel at turning cash into shareholder value and one best left off your watchlist. Trailing 12-Month Free Cash Flow Margin: 9.1% Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry. Why Does SAM Worry Us? Muted 1.7% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers Smaller revenue base of $2.04 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy Demand will likely fall over the next 12 months as Wall Street expects flat revenue Boston Beer is trading at $231.24 per share, or 22.7x forward P/E. To fully understand why you should be careful with SAM, check out our full research report (it's free). Trailing 12-Month Free Cash Flow Margin: 22.5% Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University. Why Are We Positive On LOPE? Disciplined cost controls and effective management resulted in a strong two-year operating margin of 26.5% ROIC punches in at 30.2%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets At $192.01 per share, Grand Canyon Education trades at 21.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Trailing 12-Month Free Cash Flow Margin: 26.7% With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE:MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas. Why Are We Fans of MRK? Unparalleled scale of $63.92 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry Free cash flow margin expanded by 11.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends Industry-leading 15.6% return on capital demonstrates management's skill in finding high-return investments Merck's stock price of $76.27 implies a valuation ratio of 8.4x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Yahoo
20-05-2025
- Business
- Yahoo
LOPE Q1 Earnings Call: New Program Growth and Hybrid Enrollment Drive Guidance Update
Higher education company Grand Canyon Education (NASDAQ:LOPE) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 5.3% year on year to $289.3 million. The company expects next quarter's revenue to be around $240.3 million, close to analysts' estimates. Its GAAP profit of $2.52 per share was 2.9% above analysts' consensus estimates. Is now the time to buy LOPE? Find out in our full research report (it's free). Revenue: $289.3 million vs analyst estimates of $287.1 million (5.3% year-on-year growth, 0.8% beat) EPS (GAAP): $2.52 vs analyst estimates of $2.45 (2.9% beat) Adjusted EBITDA: $102 million vs analyst estimates of $101 million (35.2% margin, 0.9% beat) The company slightly lifted its revenue guidance for the full year to $1.09 billion at the midpoint from $1.09 billion EPS (GAAP) guidance for the full year is $8.53 at the midpoint, beating analyst estimates by 1.5% Operating Margin: 30.4%, in line with the same quarter last year Free Cash Flow Margin: 20.3%, down from 27.7% in the same quarter last year Students: 127,779, up 6,991 year on year Market Capitalization: $5.52 billion Grand Canyon Education's first quarter results were shaped by robust enrollment gains and continued investment in program expansion, as highlighted by CEO Brian Mueller. Management cited growth in online and hybrid enrollments as key contributors, with new program rollouts and partnerships with employers supporting a larger student base. CFO Dan Bachus noted that higher-than-expected enrollments offset a slight decrease in revenue per student, reflecting both the leap year impact and contract changes with university partners. Looking ahead, the company's updated guidance reflects ongoing expectations for mid-to-high single-digit online enrollment growth and mid-to-high teens growth in hybrid programs. Management attributed this outlook to a combination of new site openings, expanded academic offerings, and continued momentum from workforce development initiatives. While ongoing investments and higher benefit costs are expected to pressure margins in the short term, management believes profitability will improve in the second half of the year as traditional campus enrollments stabilize. Grand Canyon Education's leadership attributed the quarter's performance to targeted program expansion and partnerships that address unmet workforce needs. Management provided several qualitative insights into the drivers of growth and areas of continued investment, while also highlighting some headwinds impacting margins and revenue per student. Online enrollment momentum: Online enrollments grew nearly 8%, driven by continued rollout of labor-market-aligned programs and direct employer partnerships. Management emphasized that frequent program launches help differentiate Grand Canyon Education from competitors that are reducing offerings. Hybrid platform expansion: Hybrid campus enrollments increased over 16% (excluding closed sites), with success attributed to accelerated prerequisite coursework and new site openings. Management reported strong demand from younger students seeking efficient pathways into nursing and other healthcare fields. Retention improvement: The company saw higher student retention rates across platforms, which management connected to the relevance of academic programs and their alignment with career aspirations. This trend supports stable enrollment even as new student acquisition fluctuates. Cost pressures and investments: Margins were affected by ongoing investments in partner initiatives, increased benefit costs, and technology services. CFO Dan Bachus noted that these factors, along with changes in revenue-sharing contracts, led to a decline in revenue per student and short-term operating margin pressure. Programmatic partnerships: Grand Canyon Education continued to sign agreements with school districts, hospitals, and military bases, expanding its reach among working adults. These partnerships were highlighted as a significant source of new enrollment growth, especially in fields with persistent labor shortages. Management's full-year outlook centers on sustaining enrollment growth through new program expansion, hybrid site development, and ongoing employer partnerships, while managing near-term margin pressures from higher costs and investments. Enrollment-driven revenue growth: The company expects continued mid-to-high single-digit online enrollment growth and double-digit expansion in hybrid programs, supported by new academic offerings and additional campus locations. Margin recovery expected: While first-half margins are pressured by elevated benefit costs and investment in new sites, management indicated that margin improvement is anticipated later in the year if traditional campus enrollment trends remain positive. Benefit costs and legal expenses: Higher benefit costs and anticipated increases in legal fees were flagged as ongoing risks, with management planning to monitor these areas closely as they work to balance growth investments and profitability. Jeff Silber (BMO Capital Markets): Asked about the source of better-than-expected enrollments; management credited new program launches and direct contracts with employers and public sector organizations as primary drivers. Jeff Silber (BMO Capital Markets): Inquired about potential student concerns regarding federal funding; CEO Brian Mueller stated that Grand Canyon Education is not significantly exposed to federal research grants and expects no major impact from federal funding changes. Alex Paris (Barrington Research): Requested updated long-term enrollment targets by delivery platform; management reaffirmed a long-term 7% enrollment growth goal and highlighted strong momentum in online and hybrid segments. Alex Paris (Barrington Research): Asked about M&A strategy; CEO Brian Mueller emphasized a preference for building new programs and sites over acquisitions, citing recent success with organic initiatives. Steven Pawlak (Baird): Questioned the conversion rate from prerequisite programs to hybrid ABSN enrollments; management explained the multi-step process and expected that scaling these programs will accelerate as more partners adopt the model. Looking ahead, the StockStory team will monitor (1) the pace of new program launches and their effect on online and hybrid enrollment growth, (2) progress in opening additional hybrid sites and expanding into graduate and non-nursing healthcare programs, and (3) stabilization of operating margins as investments and cost pressures subside. The ability to maintain high retention and strengthen workforce partnerships will also be important indicators of sustainable growth. Grand Canyon Education currently trades at a forward P/E ratio of 22.1×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
16-05-2025
- Business
- Yahoo
2 Cash-Heavy Stocks with Promising Prospects and 1 to Keep Off Your Radar
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist. Net Cash Position: $1.56 billion (22.2% of Market Cap) Started in 2005 in Romania as a tech outsourcing company, UiPath (NYSE:PATH) makes software that helps companies automate repetitive computer tasks. Why Does PATH Fall Short? Products, pricing, or go-to-market strategy may need some adjustments as its 5.7% average billings growth over the last year was weak Estimated sales growth of 6.4% for the next 12 months implies demand will slow from its three-year trend Extended payback periods on sales investments suggest the company's platform isn't resonating enough to drive efficient sales conversions UiPath is trading at $13.07 per share, or 4.8x forward price-to-sales. Read our free research report to see why you should think twice about including PATH in your portfolio, it's free. Net Cash Position: $199.3 million (3.6% of Market Cap) Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University. Why Does LOPE Stand Out? Excellent operating margin of 26.5% highlights the efficiency of its business model ROIC punches in at 30.2%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets Returns on capital are growing as management capitalizes on its market opportunities At $195.74 per share, Grand Canyon Education trades at 21.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. Net Cash Position: $203.2 million (3.7% of Market Cap) With over two centuries of combined operations manufacturing and supplying, CSW (NASDAQ:CSWI) offers special chemicals, coatings, sealants, and lubricants for various industries. Why Will CSWI Outperform? Impressive 17.8% annual revenue growth over the last five years indicates it's winning market share this cycle Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 21.9% outpaced its revenue gains Strong free cash flow margin of 15% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy CSW's stock price of $327.17 implies a valuation ratio of 35.3x forward P/E. Is now the right time to buy? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
Grand Canyon Education, Inc. (NASDAQ:LOPE) Analysts Are Pretty Bullish On The Stock After Recent Results
Investors in Grand Canyon Education, Inc. (NASDAQ:LOPE) had a good week, as its shares rose 7.7% to close at US$193 following the release of its first-quarter results. Grand Canyon Education reported US$289m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.52 beat expectations, being 2.9% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Taking into account the latest results, the current consensus from Grand Canyon Education's three analysts is for revenues of US$1.09b in 2025. This would reflect a reasonable 4.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 4.1% to US$8.55. In the lead-up to this report, the analysts had been modelling revenues of US$1.09b and earnings per share (EPS) of US$8.40 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. See our latest analysis for Grand Canyon Education The consensus price target rose 6.7% to US$213despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Grand Canyon Education's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Grand Canyon Education, with the most bullish analyst valuing it at US$215 and the most bearish at US$208 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Grand Canyon Education's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.7% growth on an annualised basis. That is in line with its 4.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Grand Canyon Education is expected to grow slower than similar companies in the same industry. The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that in mind, we wouldn't be too quick to come to a conclusion on Grand Canyon Education. Long-term earnings power is much more important than next year's profits. We have forecasts for Grand Canyon Education going out to 2026, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 1 warning sign for Grand Canyon Education that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Grand Canyon Education (NASDAQ:LOPE) Posts Better-Than-Expected Sales In Q1
Higher education company Grand Canyon Education (NASDAQ:LOPE) announced better-than-expected revenue in Q1 CY2025, with sales up 5.3% year on year to $289.3 million. The company expects next quarter's revenue to be around $240.3 million, close to analysts' estimates. Its GAAP profit of $2.52 per share was 2.9% above analysts' consensus estimates. Is now the time to buy Grand Canyon Education? Find out in our full research report. Grand Canyon Education (LOPE) Q1 CY2025 Highlights: Revenue: $289.3 million vs analyst estimates of $287.1 million (5.3% year-on-year growth, 0.8% beat) EPS (GAAP): $2.52 vs analyst estimates of $2.45 (2.9% beat) Adjusted EBITDA: $102 million vs analyst estimates of $101 million (35.2% margin, 0.9% beat) The company slightly lifted its revenue guidance for the full year to $1.09 billion at the midpoint EPS (GAAP) guidance for the full year is $8.53 at the midpoint, beating analyst estimates by 1.5% Operating Margin: 30.4%, in line with the same quarter last year Free Cash Flow Margin: 20.3%, down from 27.7% in the same quarter last year Students: 127,779, up 6,991 year on year Market Capitalization: $5.29 billion Company Overview Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University. Sales Growth A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Grand Canyon Education grew its sales at a sluggish 5.5% compounded annual growth rate. This wasn't a great result compared to the rest of the consumer discretionary sector, but there are still things to like about Grand Canyon Education. Grand Canyon Education Quarterly Revenue Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Grand Canyon Education's annualized revenue growth of 6.9% over the last two years is above its five-year trend, but we were still disappointed by the results. Grand Canyon Education Year-On-Year Revenue Growth We can dig further into the company's revenue dynamics by analyzing its number of students, which reached 127,779 in the latest quarter. Over the last two years, Grand Canyon Education's students averaged 5.7% year-on-year growth. Because this number aligns with its revenue growth during the same period, we can see the company's monetization was fairly consistent. Grand Canyon Education Students This quarter, Grand Canyon Education reported year-on-year revenue growth of 5.3%, and its $289.3 million of revenue exceeded Wall Street's estimates by 0.8%. Company management is currently guiding for a 5.6% year-on-year increase in sales next quarter.
