Start here if you're new
what it is
Laureate runs five higher-ed institutions in Mexico and Peru for about 472,000 students.
how it gets paid
Last year Laureate Educat made $1.7B in revenue. Peru institutions was the main engine at $0.74B, or 44% of sales.
why it's growing
Revenue grew 8.6% last year. Revenue was $1.2B, and EDGAR shows it rose 190% vs. prior year.
what just happened
Laureate beat by 48.1% last quarter as EPS came in at $1.17 versus $0.79.
At a glance
B+ balance sheet — decent shape, but not bulletproof
15/100 earnings predictability — expect surprises
19.9x trailing p/e — priced about right
20.5% return on capital — every dollar works hard here
xvary composite: 56/100 — below average
What they do
Laureate runs five higher-ed institutions in Mexico and Peru for about 472,000 students.
You are buying five institutions, not one campus. Laureate had about 472,000 students across more than 50 campuses on 12/31/24, so leaving means uprooting classes, credits, and degree plans. Operating margin (profit after running costs) was 26.0%, and return on capital (profit on money invested) was 20.5%.
How they make money
$1.7B
annual revenue · their business grew +8.6% last year
Peru institutions
$0.74B
+10.0%
Mexico institutions
$0.63B
+8.0%
Digital learning
$0.22B
+12.0%
Student services and other
$0.11B
+5.0%
The products that matter
degree-granting higher education
Higher Education Programs
$1.7B revenue · 100% of sales
It is the whole business: Laureate generated its full $1.7B of revenue from higher education operations in Mexico and Peru. If enrollment or tuition weakens there, there is nowhere else to hide.
100% of revenue
Key numbers
$31
VL target
sees $31, which is below the current $33.86. That says the stock is already ahead of one careful estimate.
26.0%
operating margin
This is the profit left after running the schools. At 26.0%, the business is doing more than collecting tuition.
20.5%
return on capital
For every $100 invested, Laureate earned $20.50 in operating profit. That is a strong return for a school operator.
$71M
long debt
Long-term debt is only $71M. That is small next to $1.7B in annual revenue.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $71M (1% of capital)
- net profit margin 16.2% — keeps 16 cents of every dollar in revenue
- return on equity 22% — $0.22 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in LAUR 3 years ago → it's now worth $36,390.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Laureate beat by 48.1% last quarter as EPS came in at $1.17 versus $0.79.
Revenue was $1.2B, and EDGAR shows it rose 190% vs. prior year. Mexico and Peru drove the result.
$1.2B
revenue
$1.17
eps
48.1%
surprise
EPS beat
The 48.1% EPS beat mattered most. It says the business earned far more than analysts expected in the quarter.
-
laureate education mixed 2025 third-quarter results.
-
revenues of $400 million were $10 million higher than our estimate and increased 9% compared to the previous-year tally.
-
the advance was driven by gains in both peru and mexico.
-
sales in peru, which accounted for 51% of the period's total, increased 10% thanks to an 8% rise in total enrollments.
-
that group also benefited from the scaling of fully online programs, which drove a 21% jump in new enrollments.
source: company earnings report, 2026
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What could go wrong
the #1 risk is higher education regulation and accreditation shifts in Mexico and Peru.
med
higher education regulation and accreditation shifts in Mexico and Peru
Laureate's business is concentrated in two countries. Changes to education rules, licensing, accreditation, or tuition policy there could hit the operating model directly.
This is not a side issue. It reaches 100% of the company's $1.7B revenue base because Mexico and Peru are the whole map.
med
enrollment volatility
This is a tuition business, so student demand matters. If local economic conditions weaken or enrollment trends soften, revenue can slow quickly even if the schools themselves remain profitable.
With only one core business line, weaker enrollment would pressure the same $1.7B revenue stream investors are using to justify current growth expectations.
med
earnings volatility despite strong revenue growth
The latest quarter beat estimates, yet EPS still fell 59% from last year. That matches the 15/100 predictability score: good headlines can still come with messy underlying earnings.
If EPS keeps swinging while revenue climbs, the stock can stay stuck near a middling multiple even with solid business performance.
All three risks point back to the same fact: Laureate's full $1.7B revenue base comes from one business model in two countries.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key metric
whether $2B revenue for 2026 stays realistic
The stock can defend a 19.9x trailing p/e if Laureate grows from $1.7B toward the $2B estimate. Miss that path and the valuation debate changes.
risk
regulatory tone in Mexico and Peru
Policy or accreditation changes in either market matter immediately because the company has no geographic diversification beyond those two countries.
trend
whether EPS becomes less erratic
A 15/100 predictability score and a 59% EPS drop from last year tell you the quarterly noise is real. You want that trend moving in the opposite direction.
next check-in
the next earnings release
This is the fastest way to test whether revenue growth, enrollment demand, and earnings quality are moving together instead of fighting each other.
Analyst rankings
short-term outlook
average
Momentum score 3. In human-speak, analysts are not seeing a strong near-term edge either way.
risk profile
average
Stability score 3 means typical stock risk. Not a bunker stock. Not a chaos stock.
chart momentum
average
Technical score 3 says the chart is not sending a dramatic signal beyond normal market movement.
earnings predictability
15 / 100
This is the one that matters. Low predictability means quarterly numbers can surprise you, and not always in the fun direction.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 148 buyers vs. 133 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$19
$42
$34
current price
$31
target midpoint · 8% from current · 3-5yr high: $55 (+60% · 13% ann'l return)
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