Grand Canyon Education Inc's Meteoric Rise: Unpacking the 20% Surge in Just 3 Months

Grand Canyon Education Inc (LOPE, Financial) has been making waves in the stock market with a remarkable 16.76% gain over the past week and a 19.84% surge over the past three months. The company's current market cap stands at $4.11 billion, with its stock price at $137.07. According to the GF Value, defined by GuruFocus.com, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is fairly valued at $136.91. This is a slight decrease from the GF Value of $139.65 three months ago, which suggested the stock was modestly undervalued.

Company Overview: Grand Canyon Education Inc

Grand Canyon Education Inc is a publicly traded education services company that primarily serves colleges and universities. Its most significant university partner is Grand Canyon University, an Arizona non-profit corporation that offers graduate and undergraduate degree programs across nine colleges both online and on ground. The company generates all of its revenue through services agreements with its university partners. 1721531197554749440.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 of 25.44% is better than 84.11% of companies in the industry. Its ROE of 30.18%, ROA of 22.98%, and ROIC of 30.35% are all better than the majority of companies in the industry. The company has also demonstrated consistent profitability over the past 10 years, which is better than 99.59% of companies in the industry. 1721531220409511936.png

Growth Prospects

The company's Growth Rank of 8/10 suggests strong growth potential. Its 3-Year Revenue Growth Rate per Share of 20.60% and 5-Year Revenue Growth Rate per Share of 6.60% are both better than the majority of companies in the industry. The company's future revenue and EPS growth estimates are also promising, with a Total Revenue Growth Rate (Future 3Y To 5Y Est) of 4.39% and an EPS Growth Rate (Future 3Y To 5Y Est) of 15.00%. 1721531237954285568.png

Top Holders of the Stock

The top three holders of Grand Canyon Education Inc'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 company's stock. Ray Dalio (Trades, Portfolio) holds 108,059 shares, accounting for 0.36% of the company's stock. Jeff Auxier (Trades, Portfolio) holds 14,455 shares, accounting for 0.05% of the company's stock.

Competitive Landscape

Grand Canyon Education Inc faces competition from Graham Holdings Co (GHC, Financial) with a market cap of $2.83 billion, Coursera Inc (COUR, Financial) with a market cap of $2.75 billion, and Stride Inc (LRN, Financial) with a market cap of $2.42 billion.

Conclusion

In conclusion, Grand Canyon Education Inc's stock has shown impressive performance with a significant gain over the past three months. The company's high profitability and growth ranks, coupled with its strong operating margin, ROE, ROA, and ROIC, indicate a robust financial position. The company's future revenue and EPS growth estimates also suggest strong growth potential. Despite facing competition from other companies in the industry, Grand Canyon Education Inc holds a strong position in the market.

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.