ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - NYSE:ATGE - US00737L1035 - Common Stock
97.75 USD
+5.53 (+6%)
Overall ATGE gets a fundamental rating of 7 out of 10. We evaluated ATGE against 78 industry peers in the Diversified Consumer Services industry. ATGE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ATGE is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ATGE very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ATGE was profitable.
ATGE had a positive operating cash flow in the past year.
ATGE had positive earnings in each of the past 5 years.
Each year in the past 5 years ATGE had a positive operating cash flow.
1.2 Ratios
ATGE has a better Return On Assets (8.61%) than 80.77% of its industry peers.
Looking at the Return On Equity, with a value of 16.54%, ATGE belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
ATGE has a Return On Invested Capital of 12.44%. This is amongst the best in the industry. ATGE outperforms 87.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATGE is in line with the industry average of 9.50%.
The 3 year average ROIC (9.63%) for ATGE is below the current ROIC(12.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.54% | ||
| ROIC | 12.44% |
ROA(3y)5.64%
ROA(5y)5.9%
ROE(3y)10.98%
ROE(5y)11.83%
ROIC(3y)9.63%
ROIC(5y)7.66%
1.3 Margins
The Profit Margin of ATGE (13.26%) is better than 84.62% of its industry peers.
In the last couple of years the Profit Margin of ATGE has declined.
ATGE's Operating Margin of 19.28% is amongst the best of the industry. ATGE outperforms 83.33% of its industry peers.
ATGE's Operating Margin has improved in the last couple of years.
ATGE's Gross Margin of 56.86% is fine compared to the rest of the industry. ATGE outperforms 70.51% of its industry peers.
In the last couple of years the Gross Margin of ATGE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.28% | ||
| PM (TTM) | 13.26% | ||
| GM | 56.86% |
OM growth 3Y19.65%
OM growth 5Y4.08%
PM growth 3Y-16.17%
PM growth 5YN/A
GM growth 3Y2.86%
GM growth 5Y1.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATGE is creating some value.
The number of shares outstanding for ATGE has been reduced compared to 1 year ago.
Compared to 5 years ago, ATGE has less shares outstanding
The debt/assets ratio for ATGE has been reduced compared to a year ago.
2.2 Solvency
ATGE has an Altman-Z score of 3.96. This indicates that ATGE is financially healthy and has little risk of bankruptcy at the moment.
ATGE has a better Altman-Z score (3.96) than 87.18% of its industry peers.
ATGE has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
The Debt to FCF ratio of ATGE (1.92) is better than 79.49% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that ATGE is not too dependend on debt financing.
ATGE has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: ATGE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.96 |
ROIC/WACC1.48
WACC8.39%
2.3 Liquidity
ATGE has a Current Ratio of 0.82. This is a bad value and indicates that ATGE is not financially healthy enough and could expect problems in meeting its short term obligations.
ATGE has a worse Current ratio (0.82) than 66.67% of its industry peers.
A Quick Ratio of 0.82 indicates that ATGE may have some problems paying its short term obligations.
ATGE's Quick ratio of 0.82 is on the low side compared to the rest of the industry. ATGE is outperformed by 64.10% of its industry peers.
The current and quick ratio evaluation for ATGE is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
ATGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.47%, which is quite impressive.
ATGE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.77% yearly.
The Revenue has grown by 12.85% in the past year. This is quite good.
The Revenue has been growing by 11.19% on average over the past years. This is quite good.
EPS 1Y (TTM)32.47%
EPS 3Y23.46%
EPS 5Y23.77%
EPS Q2Q%35.66%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%10.75%
3.2 Future
The Earnings Per Share is expected to grow by 15.79% on average over the next years. This is quite good.
Based on estimates for the next years, ATGE will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y18.87%
EPS Next 2Y15.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.63%
Revenue Next 2Y7.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ATGE is valuated correctly with a Price/Earnings ratio of 13.69.
Compared to the rest of the industry, the Price/Earnings ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 80.77% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ATGE to the average of the S&P500 Index (26.03), we can say ATGE is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.91 indicates a reasonable valuation of ATGE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 88.46% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, ATGE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than the industry average as 70.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ATGE is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
ATGE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ATGE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ATGE's earnings are expected to grow with 15.79% in the coming years.
PEG (NY)0.73
PEG (5Y)0.58
EPS Next 2Y15.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ATGE (11/5/2025, 3:33:09 PM)
97.75
+5.53 (+6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change1.66%
Ins Owners1.36%
Ins Owner Change6.37%
Market Cap3.55B
Revenue(TTM)1.79B
Net Income(TTM)237.06M
Analysts88
Price Target174.93 (78.96%)
Short Float %2.54%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.05%
Min EPS beat(2)6.2%
Max EPS beat(2)13.91%
EPS beat(4)4
Avg EPS beat(4)15.26%
Min EPS beat(4)6.2%
Max EPS beat(4)29.53%
EPS beat(8)8
Avg EPS beat(8)16.22%
EPS beat(12)12
Avg EPS beat(12)16.6%
EPS beat(16)14
Avg EPS beat(16)10.27%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)1.65%
Max Revenue beat(2)2.26%
Revenue beat(4)4
Avg Revenue beat(4)2.27%
Min Revenue beat(4)1.65%
Max Revenue beat(4)2.9%
Revenue beat(8)8
Avg Revenue beat(8)2.22%
Revenue beat(12)11
Avg Revenue beat(12)9.7%
Revenue beat(16)12
Avg Revenue beat(16)5.36%
PT rev (1m)12.64%
PT rev (3m)19.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.87%
EPS NY rev (1m)0%
EPS NY rev (3m)4.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.69 | ||
| Fwd PE | 10.91 | ||
| P/S | 1.99 | ||
| P/FCF | 12.35 | ||
| P/OCF | 10.51 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.33 |
EPS(TTM)7.14
EY7.3%
EPS(NY)8.96
Fwd EY9.16%
FCF(TTM)7.92
FCFY8.1%
OCF(TTM)9.3
OCFY9.51%
SpS49.22
BVpS39.46
TBVpS-8.07
PEG (NY)0.73
PEG (5Y)0.58
Graham Number79.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.54% | ||
| ROCE | 15.37% | ||
| ROIC | 12.44% | ||
| ROICexc | 13.66% | ||
| ROICexgc | 87.79% | ||
| OM | 19.28% | ||
| PM (TTM) | 13.26% | ||
| GM | 56.86% | ||
| FCFM | 16.08% |
ROA(3y)5.64%
ROA(5y)5.9%
ROE(3y)10.98%
ROE(5y)11.83%
ROIC(3y)9.63%
ROIC(5y)7.66%
ROICexc(3y)10.68%
ROICexc(5y)8.65%
ROICexgc(3y)69.89%
ROICexgc(5y)49.9%
ROCE(3y)11.9%
ROCE(5y)9.46%
ROICexgc growth 3Y43.58%
ROICexgc growth 5Y21.13%
ROICexc growth 3Y34.8%
ROICexc growth 5Y6.87%
OM growth 3Y19.65%
OM growth 5Y4.08%
PM growth 3Y-16.17%
PM growth 5YN/A
GM growth 3Y2.86%
GM growth 5Y1.26%
F-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 96.93% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 7.4 | ||
| Cash Conversion | 85.16% | ||
| Profit Quality | 121.31% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 3.96 |
F-Score8
WACC8.39%
ROIC/WACC1.48
Cap/Depr(3y)65.95%
Cap/Depr(5y)64.36%
Cap/Sales(3y)2.82%
Cap/Sales(5y)3.22%
Profit Quality(3y)159.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.47%
EPS 3Y23.46%
EPS 5Y23.77%
EPS Q2Q%35.66%
EPS Next Y18.87%
EPS Next 2Y15.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%10.75%
Revenue Next Year8.63%
Revenue Next 2Y7.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y36.23%
EBIT growth 3Y30.39%
EBIT growth 5Y15.73%
EBIT Next Year38.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.48%
FCF growth 3YN/A
FCF growth 5Y35.23%
OCF growth 1Y14.24%
OCF growth 3Y217.06%
OCF growth 5Y25.69%
ADTALEM GLOBAL EDUCATION INC / ATGE FAQ
What is the ChartMill fundamental rating of ADTALEM GLOBAL EDUCATION INC (ATGE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to ATGE.
What is the valuation status for ATGE stock?
ChartMill assigns a valuation rating of 8 / 10 to ADTALEM GLOBAL EDUCATION INC (ATGE). This can be considered as Undervalued.
How profitable is ADTALEM GLOBAL EDUCATION INC (ATGE) stock?
ADTALEM GLOBAL EDUCATION INC (ATGE) has a profitability rating of 8 / 10.
What is the financial health of ADTALEM GLOBAL EDUCATION INC (ATGE) stock?
The financial health rating of ADTALEM GLOBAL EDUCATION INC (ATGE) is 7 / 10.
Can you provide the dividend sustainability for ATGE stock?
The dividend rating of ADTALEM GLOBAL EDUCATION INC (ATGE) is 0 / 10 and the dividend payout ratio is 0%.