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LOPE - Grand Canyon Education, Inc.

We look at investment stocks that were favorably recommended by the majority of analysts as stocks to buy. We conduct a basic fundamental analysis so that finance students and investors can see for themselves whether these analysts recommendations would make a suitable investment.

Grand Canyon Education, Inc. NASDAQ:LOPE is a mid-cap education services company and its stock trades around $45 million per day. The company's revenue and earnings have shown strong growth. The book value has significantly increased and the number of employees has generally increased over the years.

The key fundamentals for LOPE are shown below.

Fundamental Data: LOPE

YearRevenue $MillionEPS $/share ROEBook Value $/shareEmployees
20135901.98 26%7.503100
20146902.45 23%10.103600
20157702.86 22%13.103650
20168703.22 19%16.303850
20179704.31 21%23.903850

The fundamental data above shows that the LOPE has been expanding. The revenue, earnings, book value and number of employees have all increased every year over the last five years.

Fundamental Analysis for LOPE:

The return on equity is strong and is generally above 20%. The profit margins (profit to revenue ratio) are good and average around 15%.

The working capital ratio (current assets to current liabilities) is 1.6 which indicates that LOPE has sufficient working capital.

The debt ratio (long-term debt to tangible assets) is around 0.1 which means that the value of LOPEs tangible assets easily covers its long-term debt (tangible assets are hard physical assets that can be sold in the event of bankruptcy liquidation).

The total ratio (total liabilities to total assets) averages around 30% which means that LOPEs total debt is 30% of the value of everything the company owns.

For the 2018 fiscal year the analysts consensus earnings is $4.78 per share with $844 million in revenue.

For the 2019 fiscal year the analysts consensus earnings is $4.44 per share with $691 million in revenue.

The 2019 PE ratio is around 27 (based on analysts consensus forecast earnings).

The book value is around $24 and LOPE is trading below its book value.

The bankruptcy risk can be calculated using the Z-score. LOPEs Z-score is 7.6 which means the company is an extremely low bankruptcy risk stock.

Summary

The company has a proven history of growth but this growth is forecast to stall in 2019. LOPE is conservatively financed and is an extremely low bankruptcy risk stock based on its high Z-score.

LOPEs maximum price history chart is shown below.

Chart 1. Price history for LOPE

weekly Chart LOPE

The maximum price history chart for LOPE shows how the stock has performed since 2008.

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