Cash Rich, Low Price – Coursera Stock to Break Out?

We think Coursera (COUR) stock is worth a look: It is growing, producing cash, and available at a significant valuation discount. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market.

What Is Happening With COUR

COUR is down 13% so far this year and is now available at a significant discount to its 3-month, 1-year, and 2-year highs. This can be attributed to heightened competitive intensity and a subdued Enterprise segment, affecting net retention rates. The all-stock merger with Udemy, announced December 17, 2025, also influenced recent market dynamics.

The stock may not reflect it yet, but here is what’s going well for the company. Coursera’s registered learners grew to 191 million, adding 7.7 million in Q3 2025, and paid enterprise customers reached 1,724. Operating cash flow was strong at $33.9 million in Q3 2025, with a very low debt-to-equity ratio of 0.01. Expansion in AI-driven learning, including over 925 generative AI courses, demonstrates product momentum, supported by a raised full-year 2025 revenue outlook of $750-$754 million.

COUR Has Strong Fundamentals

• Cash Yield: Coursera offers an impressive cash flow yield of 8.5%.
• Growing: Revenue growth of 8.1% over the last twelve months means that the cash pile is going to grow.
• Valuation Discount: COUR stock is currently trading at 39% below its 3-month high, 42% below its 1-year high, and 64% below its 2-year high.

Below is a quick comparison of COUR fundamentals with S&P medians.

*LTM: Last Twelve Months

But What About The Risk Involved?

While COUR stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. COUR took a hit of about 83% during the Inflation Shock. That’s a pretty steep drop, even with all the positives around. It shows that no matter how solid a stock looks, severe market turmoil can still cause big losses. It’s a reminder that risk doesn’t disappear just because things seem favorable. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read COUR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell COUR Stock.

Other Stocks Like COUR

Not ready to act on COUR? You could consider these alternatives:

1. Oracle (ORCL)
2. Coinbase Global (COIN)
3. Roblox (RBLX)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. Positive revenue growth
3. High free cash flow yield
4. Meaningful discount to 3M, 1Y, and 2Y highs

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 6-month and 12-month forward returns of 25.7% and 57.9% respectively
• Win rate (percentage of picks returning positive) of >70% for both 6-month and 12-month periods

The Right Way To Invest Is Through Portfolios

Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.