Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, for-profit educator Bridgepoint Education (NYSE: BPI) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Bridgepoint's business and see what CAPS investors are saying about the stock right now.
Bridgepoint facts
| Headquarters (founded) | San Diego (1918) |
| Market Cap | $984.3 million |
| Industry | Education services |
| Trailing-12-Month Revenue | $713.23 million |
| Management |
Co-Founder/CEO Andrew Clark CFO Daniel Devine |
| Return on Equity (average, past 3 years) | 87.8% |
| Cash/Debt | $279.1 million / $0 |
| Competitors |
Apollo Group (Nasdaq: APOL) DeVry (NYSE: DV) Strayer Education (Nasdaq: STRA) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 252 members who have rated Bridgepoint believe the stock will outperform the S&P 500 going forward. These bulls include 2win and All-Star TSIF, who is ranked in the top 0.2% of our community.
Late last year , 2win wrote that Bridgepoint "is one of the strongest education names out there fundamentally, and the chart pattern looks spectacular!" Our CAPS member adds: "It also has a big short interest, so a squeeze could add momentum to a break out of this pattern."
Currently, Bridgepoint even sports a paltry forward P/E of 7.4. That represents a discount to other for-profit education stocks such as Apollo Group (9.4), DeVry (10.7), and Strayer (15.2).
CAPS All-Star TSIF elaborates on the Bridgepoint bull case:
It's moving more toward ground base and even if the Senate levy's penalties or restrictions, it's cost model is fairly sound. Profit magins 18%, operating margins 30%. No debt. $5 per share cash on hand. ... Cash flow solid, bought back shares last year. Not sure what the timeline will be, but until there is regulation, profits/cash flow will continue to be maintained and the final result may not be that harmful if Bridgepoint ups it's ground base and if so many students are dropping out anyway under the current format.
What do you think about Bridgepoint, 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!
