Grand Canyon Education Inc.LOPE

Morningstar Rating

Stock Research and Analysis

by Todd Young

Grand Canyon is a for-profit education company primarily focused on online education. Favorable industry dynamics, low investment needs, and a focus on working adults help give the company a wide economic moat, in our opinion.

For-profit education companies operate in an industry with favorable dynamics. Read more

Bulls Say

With only about 3% of revenue coming from private student loans, Grand Canyon has minimal exposure to recent private lending issues in the industry.

The education industry, and particularly online education, is very scalable. Grand Canyon's heavy concentration of online students should boost profitability quickly.

The acyclical nature of Grand Canyon's business makes it a defensive investment during weak economic times. Read more

Bears Say

High education costs and burdensome postgraduation debt loads invite added government regulation.

A weak job market could discourage some potential students from continuing their education.

A slowing economy could affect students who receive tuition assistance from employers. Read more

Strategy

Grand Canyon is focused on growing within its existing core offerings by hiring more enrollment counselors and marketing personnel in order to drive enrollment and retention growth. The company is also looking to expand its degree offerings, increase its brand recognition through marketing efforts, and expand relationships with private-sector and government employers. Read more

Management

Former Apollo APOL president Brian Mueller took over as CEO in 2008 from Brent Richardson. Mueller's 20-year background at one of the industry's leading companies gives us confidence in his leadership. Richardson remains with the company as chairman. Read more

Profile

Grand Canyon is a regionally accredited education company focused on working adults. Founded in 1949 as a nonprofit school, Grand Canyon converted in 2004 to a for-profit institution. Read more

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