Perdoceo EducationMEX:PRDO 76 Operating Margin % is 31.06% as of Mar. 2026, which is 20% above its 10-year median of 25.86. GuruFocus rates MEX:PRDO with a GF Score™ of 76/100 and a GF Value™ of MXN523.70. The stock has 3 warning signs investors should review. Among 258 Education companies, Perdoceo Education ranks better than 83.33% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Perdoceo Education Operating Margin % Related Terms
Perdoceo Education Operating Margin % Historical Data
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The historical data trend for Perdoceo Education's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:PRDO vs UTI, MH, STRA: Operating Margin % Comparison
For the Education & Training Services subindustry, Perdoceo Education's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Perdoceo Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Perdoceo Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Perdoceo Education's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Perdoceo Education's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Perdoceo Education (MEX:PRDO) has a Operating Margin % of 31.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Perdoceo Education and its competitors. This is 20% above median its historical median of 25.86. Over the past decade, Perdoceo Education's Operating Margin % has ranged from 0.12 to 31.18. According to the industry distribution chart, Perdoceo Education ranks #43 out of 258 companies in the Education industry, placing it in the top 16.7%.
Is Perdoceo Education's Operating Margin % too high?
Perdoceo Education's current Operating Margin % of 31.06% is 20% above median its 10-year median of 25.86. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 31.18. The Education industry median Operating Margin % is 9.46. Perdoceo Education's value of 31.06% is 228.3% above this industry median. Based on the distribution chart, Perdoceo Education ranks #43 out of 258 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Perdoceo Education has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Perdoceo Education's Operating Margin % compare to UTI and MH?
According to the Education industry distribution chart, Perdoceo Education ranks #43 out of 258 companies for Operating Margin %. This places Perdoceo Education in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.46. Perdoceo Education's value of 31.06% is 228.3% above this benchmark. Historically, Perdoceo Education's own Operating Margin % has ranged from 0.12 to 31.18 over the past decade. While the company's 10-year median is 25.86 vs. the industry median of 9.46, Perdoceo Education has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Perdoceo Education's current Operating Margin % of 31.06% is 228.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Perdoceo Education and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perdoceo Education's current Operating Margin % is 31.06%, which is 20% above median its own 10-year median of 25.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perdoceo Education stock overvalued right now?
Perdoceo Education (MEX:PRDO) has a current Operating Margin % of 31.06%. The stock's GF Value™ is MXN523.70, compared to a current price of MXN555.00 — trading 6% above its estimated fair value. The current Operating Margin % is 31.06%, which is 20% above median its 10-year median of 25.86 and 228.3% above the Education industry median of 9.46. Perdoceo Education's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Perdoceo Education (MEX:PRDO), the current Operating Margin % is 31.06% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Perdoceo Education (MEX:PRDO) Overvalued in 2026?
Based on GuruFocus' analysis, Perdoceo Education stock appears to be overvalued.
The current stock price of MXN555.00 is trading 6% above its estimated GF Value™ of MXN523.70.
Key valuation signals for MEX:PRDO:
Operating Margin %: 31.06% (20% above median its 10-year median of 25.86)
GF Value™: MXN523.70 vs. price of MXN555.00 (6% above fair value)
Industry Position: 228.3% above the Education median (#43 of 258)
No single metric tells the full story. See the MEX:PRDO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segments include the American InterContinental University, the University of St. Augustine for Health Sciences, and Colorado Technical University. These universities provide undergraduate, graduate, and doctoral degree programs focusing on business, technology, management, and social services, with the majority of the students enrolled in programs offered fully online. The majority of the its revenue comes from the Colorado Technical University segment.
76GF Score
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