Coursera, Inc. (NYSE: COUR)

Sector: Consumer Defensive Industry: Education & Training Services CIK: 0001651562
Market Cap 968.35 Mn
P/B 1.51
P/E -21.14
P/S 1.31
ROIC (Qtr) -13.16
Div Yield % 0.00
Rev 1y % (Qtr) 10.28
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Coursera, Inc., known by its ticker symbol COUR, is a prominent player in the online education industry. The company's mission is to provide high-quality, affordable education to every corner of the world, and its vision is to make online learning the primary means of meeting the global demand for emerging skills. Coursera operates a unified technology platform that allows educators to efficiently produce, teach, and scale content and credentials. This platform caters to learners seeking flexible, hands-on online learning environments at affordable...

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Investment thesis

Bull case

  • Robust free cash flow of 87.88M exceeds capital expenditure of 34.23M by 2.57x, indicating strong organic growth funding capability.
  • Tangible assets of 969.70M provide exceptional 5.42x coverage of deferred revenue 179M, showing strong service capability backing.
  • Cash reserves of 797.70M provide robust 2.28x coverage of current liabilities 349.50M, indicating strong short-term solvency.
  • Strong cash position of 797.70M provides 2.47x coverage of other current liabilities 323.20M, indicating excellent liquidity.
  • Operating cash flow of 122.11M provides strong 20.71x coverage of operating expenses 5.90M, showing operational efficiency.

Bear case

  • Operating cash flow of 122.11M barely covers its investment activities of (34.23M), with a coverage ratio of -3.57, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (34.23M) provide weak support for R&D spending of 120.92M, which is -0.28x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 122.11M provides insufficient coverage of deferred revenue obligations of 179M, which is 0.68x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 122.11M shows concerning coverage of stock compensation expenses of 95.94M, with a 1.27 ratio indicating potential earnings quality issues.
  • Operating earnings of (45.03M) show weak coverage of depreciation charges of 28.15M, with a -1.60 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Education & Training Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EDU New Oriental Education & Technology Group Inc. 9.35 Bn 24.58 1.82 0.78 Bn
2 TAL TAL Education Group 6.18 Bn 22.22 2.20 0.38 Bn
3 GHC Graham Holdings Co 5.47 Bn 12.27 1.91 1.17 Bn
4 LAUR Laureate Education, Inc. 5.20 Bn 25.55 3.29 0.44 Bn
5 LOPE Grand Canyon Education, Inc. 4.62 Bn 21.85 4.23 0.11 Bn
6 LRN Stride, Inc. 3.61 Bn 11.32 1.43 0.56 Bn
7 ATGE Covista Inc. 3.46 Bn 13.66 1.83 0.73 Bn
8 PRDO PERDOCEO EDUCATION Corp 2.84 Bn 42.39 1.73 0.06 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.19 0.71
EV to Cash from Ops. EV/CFO 1.58 6.80
EV to Debt EV to Debt 0.00 11.15
EV to EBIT EV/EBIT -4.29 112.78
EV to EBITDA EV/EBITDA -4.07 6.48
EV to Free Cash Flow [EV/FCF] EV/FCF 2.20 5.57
EV to Market Cap EV to Market Cap 0.20 582,173.64
EV to Revenue EV/Rev 0.26 1.74
Price to Book Value [P/B] P/B 1.51 -3.80
Price to Earnings [P/E] P/E -21.14 -1.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 11.73
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.69
Interest Coverage Int. cover (Qtr) 0.00 53.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -13.44 -82.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 10.88 25.11
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 41.46 -39.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 45.33 -34.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 38.86 -40.70
EBT Growth (1y) % EBT 1y % (Qtr) 38.86 -52.53
EPS Growth (1y) % EPS 1y % (Qtr) 43.14 -29.51
FCF Growth (1y) % FCF 1y % (Qtr) 52.60 -36.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 10.10 -3.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.74 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 2.28 0.73
Current Ratio Curr Ratio (Qtr) 2.57 1.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 3.83
Interest Cover Ratio Int Coverage (Qtr) 0.00 53.05
Times Interest Earned Times Interest Earned (Qtr) 0.00 53.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.30 -30.62
EBIT Margin % EBIT Margin % (Qtr) -6.09 -82.13
EBT Margin % EBT Margin % (Qtr) -6.09 -47.07
Gross Margin % Gross Margin % (Qtr) 54.40 50.48
Net Profit Margin % Net Margin % (Qtr) -6.20 -48.61