Career Education Corp

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CECO : NASDAQ : Services
$10.05 | %
Today's Range: 9.82 - 10.15
Avg. Daily Volume: 342300.0
12/02/16 - 4:00 PM ET

Financial Analysis


CAREER EDUCATION CORP's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. CAREER EDUCATION CORP has strong liquidity. Currently, the Quick Ratio is 1.87 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 82.58% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)167.63203.48
EBITDA ($mil)4.51-4.58
EBIT ($mil)-0.71-10.54
Net Income ($mil)-0.69-45.24


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)217.78199.42
Total Assets ($mil)551.47448.88
Total Debt ($mil)0.00.0
Equity ($mil)355.02194.44


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin69.3463.2
EBITDA Margin2.68-2.25
Operating Margin-0.42-5.18
Sales Turnover1.361.93
Return on Assets28.44-25.91
Return on Equity44.35-58.34
Debt Q3 FY16 Q3 FY15
Current Ratio1.991.49
Debt/Capital0.00.0
Interest Expense0.120.17
Interest Coverage-6.03-62.02


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)68.4967.98
Div / share0.00.0
EPS-0.01-0.66
Book value / share5.182.86
Institutional Own % n/a n/a
Avg Daily Volume347812.0373633.0

Valuation


HOLD. CAREER EDUCATION CORP's P/E ratio indicates a significant discount compared to an average of 44.71 for the Diversified Consumer Services industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.87 indicates a discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 5.11. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CAREER EDUCATION CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CECO 4.22 Peers 44.71   CECO 43.97 Peers 21.89

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CECO is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CECO is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CECO 241.75 Peers 31.90   CECO NM Peers 1.57

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CECO is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CECO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CECO 1.87 Peers 5.11   CECO 237.12 Peers -4.46

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CECO is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CECO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CECO 0.88 Peers 2.72   CECO -13.39 Peers 9.10

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CECO is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CECO significantly trails its peers on the basis of sales growth

 

 

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