/
Services-educational services company · E9 · FY ends May · Revenue $4.90B · 8.74% margin · $655M FCF
$51.46
$3.27 (-5.97%)
Price from 43 days ago
Operating margin is thin at 8.74%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 13.6%, still solid. Free cash flow declined 25% despite revenue growth, conversion is weakening.
At 226x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Free cash flow declined 25% versus the prior year, cash generation momentum has weakened.
225.8x earnings, 128.2x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$4.90B
▲ +13.6% YoY
Net Income (TTM)
$372M
▲ +20.1% YoY
Op. Margin
8.74%
▲ +0.6pp YoY
ROIC
6.35%
▲ +0.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$655M
▼ -25.0% YoY
Op. Cash Flow (TTM)
$897M
▼ -20.1% YoY
Net Debt
-$823M
Net Cash Position
Cash & Equiv.
$1.61B
5Y CAGR: +6.5%
5Y CAGR: +5.8%
Continue Research