Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit college operator Capella Education (Nasdaq: CPLA ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Capella's business and see what CAPS investors are saying about the stock right now.
Capella facts
| Headquarters (Founded) |
Minneapolis (1991) |
| Market Cap |
$490.5 million |
| Industry |
Education services |
| Trailing-12-Month Revenue |
$434.8 million |
| Management |
Chairman/CEO J. Kevin Gilligan
CFO Steven Polacek |
| Return on Equity (Average, Past 3 Years) |
29.6% |
| Cash/Debt |
$138.5 million / $0 |
| Competitors |
Apollo Group (Nasdaq: APOL )
Strayer Education (Nasdaq: STRA ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 231 members who have rated Capella believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and buffetfisherftw.
Earlier this week, robertshrestha listed several of Capella's positives: "Relatively low student default rates, lots of growth potential online, solid position in industry, unfairly beaten down. Lots to like here."
In fact, Capella currently sports a cheapish P/E of 9.3. That represents a discount to industry peers like Apollo (11.2), Strayer (10.3), and New Oriental Education & Technology (NYSE: EDU ) (29.9).
CAPS member buffetfisherftw elaborates on the bargain opportunity:
Significantly under-priced due to overreactions about regulation. Currently priced in the low 30's, and worth every bit of $100/share. This is one of the best managed online educators, and has a wide moat with its focus on graduate degrees. Additionally, this sector has much room to grow as adults slowly realize for-profits can provide better education for less money than traditional schools.
What do you think about Capella, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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