ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATGE - US00737L1035 - Common Stock
92.49 USD
+2.88 (+3.21%)
92.49 USD
0 (0%)
Overall ATGE gets a fundamental rating of 7 out of 10. We evaluated ATGE against 77 industry peers in the Diversified Consumer Services industry. ATGE scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ATGE is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ATGE a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ATGE was profitable.
In the past year ATGE had a positive cash flow from operations.
Each year in the past 5 years ATGE has been profitable.
In the past 5 years ATGE always reported a positive cash flow from operatings.
1.2 Ratios
ATGE has a better Return On Assets (8.81%) than 77.92% of its industry peers.
ATGE has a Return On Equity of 17.34%. This is amongst the best in the industry. ATGE outperforms 80.52% of its industry peers.
ATGE has a Return On Invested Capital of 12.67%. This is amongst the best in the industry. ATGE outperforms 84.42% of its industry peers.
ATGE had an Average Return On Invested Capital over the past 3 years of 9.63%. This is in line with the industry average of 9.62%.
The 3 year average ROIC (9.63%) for ATGE is below the current ROIC(12.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.81% | ||
| ROE | 17.34% | ||
| ROIC | 12.67% |
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
With an excellent Profit Margin value of 13.79%, ATGE belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
ATGE's Profit Margin has declined in the last couple of years.
ATGE has a better Operating Margin (19.55%) than 84.42% of its industry peers.
In the last couple of years the Operating Margin of ATGE has grown nicely.
With a decent Gross Margin value of 57.11%, ATGE is doing good in the industry, outperforming 70.13% of the companies in the same industry.
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 | 19.55% | ||
| PM (TTM) | 13.79% | ||
| GM | 57.11% |
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.
ATGE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ATGE has been reduced compared to a year ago.
2.2 Solvency
ATGE has an Altman-Z score of 3.82. This indicates that ATGE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ATGE (3.82) is better than 84.42% of its industry peers.
ATGE has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
ATGE has a Debt to FCF ratio of 1.71. This is amongst the best in the industry. ATGE outperforms 80.52% of its industry peers.
ATGE has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ATGE (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.52
WACC8.31%
2.3 Liquidity
A Current Ratio of 0.98 indicates that ATGE may have some problems paying its short term obligations.
With a Current ratio value of 0.98, ATGE perfoms like the industry average, outperforming 40.26% of the companies in the same industry.
ATGE has a Quick Ratio of 0.98. This is a bad value and indicates that ATGE is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ATGE (0.98) is comparable to the rest of the industry.
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 | 0.98 | ||
| Quick Ratio | 0.98 |
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.
The Earnings Per Share has been growing by 23.77% on average over the past years. This is a very strong growth
ATGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.24%.
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)12.24%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.95, which indicates a correct valuation of ATGE.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than 79.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.98. ATGE is valued rather cheaply when compared to this.
ATGE is valuated reasonably with a Price/Forward Earnings ratio of 10.33.
Based on the Price/Forward Earnings ratio, ATGE is valued cheaper than 88.31% of the companies in the same industry.
ATGE is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than ATGE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ATGE is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.4 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ATGE may justify a higher PE ratio.
ATGE's earnings are expected to grow with 15.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)0.55
EPS Next 2Y15.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ATGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.49
+2.88 (+3.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change1.48%
Ins Owners1.36%
Ins Owner Change7.45%
Market Cap3.36B
Revenue(TTM)1.83B
Net Income(TTM)252.73M
Analysts88
Price Target169.83 (83.62%)
Short Float %2.64%
Short Ratio1.84
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)7.48%
Min EPS beat(2)6.2%
Max EPS beat(2)8.76%
EPS beat(4)4
Avg EPS beat(4)14.6%
Min EPS beat(4)6.2%
Max EPS beat(4)29.53%
EPS beat(8)8
Avg EPS beat(8)15.57%
EPS beat(12)12
Avg EPS beat(12)16.12%
EPS beat(16)15
Avg EPS beat(16)11.89%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.2%
Max Revenue beat(2)1.65%
Revenue beat(4)4
Avg Revenue beat(4)1.59%
Min Revenue beat(4)0.2%
Max Revenue beat(4)2.26%
Revenue beat(8)8
Avg Revenue beat(8)2.1%
Revenue beat(12)12
Avg Revenue beat(12)9.85%
Revenue beat(16)13
Avg Revenue beat(16)6.52%
PT rev (1m)9.36%
PT rev (3m)9.36%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-0.3%
EPS NY rev (1m)0%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 10.33 | ||
| P/S | 1.83 | ||
| P/FCF | 10.4 | ||
| P/OCF | 8.86 | ||
| P/B | 2.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.63 |
EPS(TTM)7.14
EY7.72%
EPS(NY)8.96
Fwd EY9.68%
FCF(TTM)8.9
FCFY9.62%
OCF(TTM)10.44
OCFY11.28%
SpS50.46
BVpS40.12
TBVpS-7.33
PEG (NY)0.69
PEG (5Y)0.55
Graham Number80.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.81% | ||
| ROE | 17.34% | ||
| ROCE | 15.64% | ||
| ROIC | 12.67% | ||
| ROICexc | 14.32% | ||
| ROICexgc | 96% | ||
| OM | 19.55% | ||
| PM (TTM) | 13.79% | ||
| GM | 57.11% | ||
| FCFM | 17.63% |
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-Score9
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 106.72% | ||
| Cap/Sales | 3.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.31% | ||
| Profit Quality | 127.88% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 3.82 |
F-Score9
WACC8.31%
ROIC/WACC1.52
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)12.24%
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 1Y22.99%
EBIT growth 3Y30.39%
EBIT growth 5Y15.73%
EBIT Next Year38.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y96.24%
FCF growth 3YN/A
FCF growth 5Y35.23%
OCF growth 1Y79.51%
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%.