Quality Investor

American Public Education, Inc.

Rank #42Hypergrowth

APEI · Nasdaq · Consumer Defensive

American Public Education, Inc. (APEI) — Rank #42 by gross profitability (GP/assets 0.65) · ROE 10.0% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001201792 · all metrics point-in-time as of the filing date.

About

American Public Education, Inc., together with its subsidiaries, provides online and campus-based postsecondary education services in the United States.

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It operates through three segments: American Public University System, Rasmussen University, and Hondros College of Nursing. The company offers 181 degree programs, 110 certificate programs, and four diploma programs in various fields of study, including public service-focused fields, such as nursing, national security, military studies, intelligence, and homeland security, as well as traditional academic fields comprising business, health science, information technology, justice studies, education, and liberal arts; and career learning and leadership training in-person and online to the federal workforce. It also provides nursing-and health sciences-focused postsecondary education; and pre-licensure nursing education services focusing on a diploma in practical nursing and associate degree in nursing, as well as a bachelor of science in nursing.

The company was incorporated in 1991 and is headquartered in Charles Town, West Virginia.

Industry
Education & Training Services
Sector
Consumer Defensive
State
DE
Filer Category
Accelerated filer
Fiscal Year End
December 31
Website
apei.com

Price History

APEI+66.3% · +10.7% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$820.64M

P/E (annual)

33.0

P/S (annual)

1.3

P/B

2.6

P/OCF (annual)

13.2

Shareholder Yield

1.3%

Employees

2,360

Industry

Education & Training Services

Exchange

Nasdaq

Signal Flags

2 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

GP / assets
0.65
Return on equity
10.0%
Gross margin trend
N/A

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.71
Current ratio
3.25×
Net cash
$163.09M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.3%

Growth

2/2 pass
Revenue growth
335.5%
Piotroski F-Score
N/A
Share dilution
-1.3%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

6.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -1.3% — per-share value needs a total required return of 5.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 39.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

2.2%

r = 10% (base)

6.4%

r = 12%

10.1%

Net debt / market cap: -19.5%

Base FCF: $46.1M3Y mean FCF: $25.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

21.6xCheap
21.2xmed 26.3x61.7x

P / S

Price / revenue per share

0.9xCheap
0.9xmed 1.8x7.8x

P / B

Price / book value per share

0.9xCheap
0.9xmed 1.9x16.0x

P / GP

Price / gross profit per share

1.6xCheap
1.6xmed 2.4x3.0x

P / FCF

Price / free cash flow per share

86.2xExpensive
10.5xmed 22.4x86.2x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.65

Primary signal (Novy-Marx).

2nd of 8 SIC 8200 peers

Return on equity

10.0%

Gross margin

54.2%

5th of 8 SIC 8200 peers

Revenue growth (YoY)

335.5%

Gross margin improving

Margin trend vs prior year.

N/A

Operating Leverage

2009201020202021
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

15.1%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.71

3rd of 8 SIC 8200 peers (best = lowest)

Current ratio

3.25×

2nd of 8 SIC 8200 peers

Quick ratio

3.29×

Net cash

$163.09M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$46.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.46

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.3%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 7/9 components determinable.

Lifecycle Phase History

20072021
Hypergrowth