Grand Canyon Education - AI Stock Analysis

Analysis generated November 24, 2025

Grand Canyon Education, Inc. (GCE) provides educational services to Grand Canyon University (GCU), a private Christian university located in Phoenix, Arizona. GCE offers various degree programs through GCU, focusing on undergraduate and graduate degree programs across various disciplines. The company has a robust online education platform, which allows it to reach a broad demographic of students nationally and internationally. The company's strategic focus on online learning services has proven to be a significant growth driver.

Fundamental Analysis

Analyzing Grand Canyon Education's financials reveals a mixed performance. The revenue for the last quarter was $261 million, an increase of 5.51% compared to the previous quarter and a 9.59% increase year over year, indicating a healthy top-line growth. However, the net income for the last quarter was $16 million, a significant 60.83% drop compared to the previous quarter and a similar 60.75% decline year over year. This drop may raise concerns about the company’s profitability and cost management.

The EBITDA for the last quarter stood at $32 million, which is a 50.99% decrease compared to the previous quarter and a 48.30% decrease year over year, indicating significant challenges in maintaining operational efficiency. The current P/E ratio of 21.62 is within a normal range, suggesting the stock might be relatively fairly valued compared to its earnings. Investors should closely monitor the company's profitability metrics in subsequent quarters.

Technical Analysis

From a technical perspective, Grand Canyon Education's stock is currently trading at $155.24. This is a 28.90% decrease compared to a month ago, signaling potential investor concern in the short term. Over the past year, the stock decreased by 7.53%, which could be indicative of longer-term issues affecting sentiment and performance.

The trend is currently bearish. The Simple Moving Average over 10 days (SMA10) is 161.81, down from the previous 163.06, suggesting a continuous downward trend. The Relative Strength Index (RSI) is at 41.8, suggesting a neutral condition where the stock is neither overbought nor oversold. A prolonged period of bearish trends might pose further risks.

Alternative Data Analysis

Several alternative data indicators provide additional insights into Grand Canyon Education's current market positioning. The company currently has 208 open positions, with the number being stable over recent months, suggesting workforce stability. Employee sentiment towards the company's business outlook is neutral, indicating neither a declining nor an overly optimistic view.

In terms of customer acquisition, Grand Canyon Education's website had an estimated 5.9 million visitors recently, with a 7% increase noticed over the past few months. This upward trend can be indicative of growing interest or demand. Their social media presence shows 150,000 followers on Instagram, up by 5%, and 140,000 followers on Twitter, indicating stable customer engagement on social media platforms. However, their mobile app downloads remain static, showing no significant consumer inclination towards mobile usage.

The AltIndex AI score, which synthesizes fundamental, technical, and alternative data, stands at 53, signaling a hold recommendation, reflecting the mixed financial and market conditions.

Conclusion and Recommendation

Grand Canyon Education exhibits a combination of strong top-line growth and concerning profitability declines. While the company shows stable workforce metrics and a positive customer acquisition trend, the significant drops in net income and EBITDA raise immediate financial concerns. The bearish trend in stock price further underscores investor caution.

Based on the present analysis, the stock appears to be fairly valued. However, given the considerable declines in profitability metrics and the bearish technical indicators, it is prudent to adopt a cautious approach. Investors may consider holding the stock until further positive developments in profitability and technical trends are observed.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.