| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 18.5x | 17.8x | Top tier | |
Growth | 61 | 3.6% | 7.1% | Around median | |
Quality | 85 | 10.6% | 4.5% | Top tier | |
Safety | 81 | 1.0x | 2.6x | Top tier | |
Capital Return | 65 | — | 2.12% | Around median | |
Momentum | 56 | 65.8% | 2.9% | Around median | |
Sentiment | 35 | 4 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
American Public Education provides online and on-campus higher education services, focusing primarily on military personnel, veterans, and their families, as well as healthcare and nursing professionals. The company generates its revenue through two main segments: Military+, which serves the armed forces, and Health+, which focuses on nursing programs. The company recently achieved a strategic milestone by consolidating its educational institutions to include American Public University System, Rasmussen University, and Hondros College of Nursing under a single institutional accreditation, which contributes to streamlining operations and removing previous regulatory restrictions.
In the second quarter of 2026, the company reported strong results that exceeded expectations, as total revenue increased by 5.5% year-over-year to $171.7 million, and if the revenue from the divested Graduate School USA were excluded, the growth rate would have reached 7.8%. Net income reached $9.8 million, or $0.52 per share, compared to a loss in the same period last year, while adjusted EBITDA jumped by 36.8% to reach $20.7 million. At the segment level, the Health+ division generated revenue of $86.2 million, growing by 11%, while the Military+ division recorded revenue of $85.5 million, growing by 4.7%, reflecting a strong balance in the revenue mix.
Automated analysis for informational purposes only — not investment advice.
American Public Education stock is currently trading under an analyst consensus rating of Hold, with an average price target of $59. The analysts' target range is between a low of $51 and a high of $64, reflecting cautious optimism driven by management's upward revision of 2026 earnings and revenue guidance. Given the strong balance sheet and growth in adjusted EBITDA, the valuation appears to rely heavily on the company's ability to overcome military enrollment challenges and realize institutional consolidation savings to reach analyst targets.
Figures in the text are as of 2026-08-12; the live price is shown at the top of the page.
This upgrade was a result of strong performance in the second quarter, where the company exceeded the high end of its previous expectations. Management raised revenue estimates to a range of $690 million to $698 million, and net income to between $46.5 million and $52.5 million. This improvement is attributed to continued enrollment momentum in the Health+ segment, which grew by 11%, as well as strong profit margins in the Military+ segment.
The conflict has led to increased deployments of US military forces, particularly in the Navy, Air Force, and Marine Corps, causing some military students in the Military+ segment to temporarily pause their studies. The company has factored these headwinds into its financial guidance for the remainder of 2026. However, US Army student enrollments remain strong and have not been structurally impacted, providing the company with relative stability.
Consolidating the company's institutions under a single accreditation removed regulatory restrictions imposed by the Department of Education in 2021 on Rasmussen University's total enrollment growth. This development allows the university to accept more students relying on federal financial aid without the previously mandated cap. It also paves the way for realizing revenue synergies by offering the university's programs at Hondros campuses.
This strategy aims to open two new nursing campuses annually with a capital expenditure of approximately $3.5 million per campus. The company already opened the Orlando campus in the second quarter of 2026, and is preparing to open a second Detroit campus later this year. Management has also signed a lease for a Fort Lauderdale campus, with enrollment scheduled to begin in the fourth quarter of 2027.
The company observed an increase in the cost per lead for non-core online programs, which negatively impacted enrollment volumes in those programs. In response, management engaged a third party to evaluate overall marketing efficiency and identify opportunities to reduce the cost per start for new students. The company has already begun implementing organizational changes and expects tangible improvements to materialize in the fourth quarter of 2026.
