Grand Canyon Education Inc's Meteoric Rise: Unpacking the 24% Surge in Just 3 Months

Grand Canyon Education Inc (LOPE, Financial) has been making waves in the stock market with a remarkable 14.55% gain over the past week and a 24.22% surge over the past three months. The company's stock price currently stands at $136.22, with a market cap of $4.12 billion. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. Currently, the GF Value of the stock is $136.82, compared to the past GF Value of $139.65 three months ago. This indicates that the stock is fairly valued, compared to being modestly undervalued three months ago.

Company Overview

Grand Canyon Education Inc is a publicly traded education services company that primarily serves colleges and universities. The company's most significant university partner is Grand Canyon University, a comprehensive regionally accredited university that offers graduate and undergraduate degree programs across nine colleges both online and on ground. The company generates all of its revenue through service agreements with its university partners. 1720444023971311616.png

Profitability Analysis

Grand Canyon Education Inc boasts a high Profitability Rank of 9/10, indicating a high level of profitability. The company's Operating Margin stands at 25.44%, better than 84.11% of companies in the industry. The ROE is 30.18%, better than 89.47% of companies, while the ROA is 22.98%, better than 94.62% of companies. The ROIC is 30.35%, better than 93.85% of companies. The company has consistently been profitable over the past 10 years, better than 99.59% of companies in the industry. 1720444044582121472.png

Growth Prospects

The company's Growth Rank is 8/10, indicating strong growth in terms of revenue and profitability. The 3-Year Revenue Growth Rate per Share is 20.60%, better than 78.57% of companies, while the 5-Year Revenue Growth Rate per Share is 6.60%, better than 61.66% of companies. The estimated Total Revenue Growth Rate for the next 3 to 5 years is 4.39%, better than 26.47% of companies. The 3-Year EPS without NRI Growth Rate is 1.80%, better than 38.51% of companies, while the 5-Year EPS without NRI Growth Rate is 6.20%, better than 44.44% of companies. The estimated EPS without NRI Growth Rate for the next 3 to 5 years is 15.00%, better than 57.14% of companies. 1720444062911229952.png

Top Holders

The top three holders of the company's stock are Jim Simons (Trades, Portfolio), Ray Dalio (Trades, Portfolio), and Jeff Auxier (Trades, Portfolio). Jim Simons (Trades, Portfolio) holds 182,602 shares, accounting for 0.6% of the total shares. Ray Dalio (Trades, Portfolio) holds 108,059 shares, accounting for 0.36% of the total shares. Jeff Auxier (Trades, Portfolio) holds 14,455 shares, accounting for 0.05% of the total shares.

Competitors

Grand Canyon Education Inc faces competition from several companies in the education industry. Graham Holdings Co (GHC, Financial) has a market cap of $2.75 billion, Coursera Inc (COUR, Financial) has a market cap of $2.79 billion, and Stride Inc (LRN, Financial) has a market cap of $2.41 billion.

Conclusion

In conclusion, Grand Canyon Education Inc has shown impressive stock performance, profitability, and growth. The company's stock is fairly valued, and it has a high level of profitability and strong growth prospects. The company's top holders and main competitors also play a significant role in its market position. Given these factors, Grand Canyon Education Inc appears to be in a strong position in the education industry and has promising future prospects.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.