ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
NYSE:ATGE - New York Stock Exchange, Inc. - US00737L1035 - Common Stock - Currency: USD
Overall ATGE gets a fundamental rating of 6 out of 10. We evaluated ATGE against 71 industry peers in the Diversified Consumer Services industry. While ATGE has a great profitability rating, there are some minor concerns on its financial health. ATGE is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make ATGE a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
ATGE had positive earnings in the past year.
In the past year ATGE had a positive cash flow from operations.
Of the past 5 years ATGE 4 years were profitable.
ATGE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATGE has a better Return On Assets (7.65%) than 84.38% of its industry peers.
ATGE has a better Return On Equity (14.47%) than 75.00% of its industry peers.
ATGE has a better Return On Invested Capital (12.33%) than 87.50% of its industry peers.
ATGE had an Average Return On Invested Capital over the past 3 years of 7.66%. This is below the industry average of 12.02%.
The last Return On Invested Capital (12.33%) for ATGE is above the 3 year average (7.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 14.47% | ||
| ROIC | 12.33% |
ROA(3y)6.19%
ROA(5y)3.41%
ROE(3y)12.42%
ROE(5y)7.22%
ROIC(3y)7.66%
ROIC(5y)7.12%
1.3 Margins
The Profit Margin of ATGE (12.34%) is better than 82.81% of its industry peers.
In the last couple of years the Profit Margin of ATGE has declined.
ATGE has a Operating Margin of 19.55%. This is amongst the best in the industry. ATGE outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of ATGE has declined.
ATGE has a Gross Margin of 56.72%. This is in the better half of the industry: ATGE outperforms 70.31% 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 | 19.55% | ||
| PM (TTM) | 12.34% | ||
| GM | 56.72% |
OM growth 3Y-1.18%
OM growth 5Y-2.38%
PM growth 3Y3.49%
PM growth 5Y-1.67%
GM growth 3Y4.44%
GM growth 5Y0.9%
2. Health
2.1 Basic Checks
ATGE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 4.23 indicates that ATGE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATGE (4.23) is better than 84.38% of its industry peers.
ATGE has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as ATGE would need 2.78 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.78, ATGE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ATGE has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
ATGE has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: ATGE outperforms 40.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.13
WACC10.91%
2.3 Liquidity
ATGE has a Current Ratio of 1.06. This is a normal value and indicates that ATGE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ATGE (1.06) is worse than 60.94% of its industry peers.
A Quick Ratio of 1.06 indicates that ATGE should not have too much problems paying its short term obligations.
ATGE has a Quick ratio of 1.06. This is comparable to the rest of the industry: ATGE outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.19% over the past year.
The Earnings Per Share has been growing by 12.11% on average over the past years. This is quite good.
ATGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.83%.
ATGE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.34% yearly.
EPS 1Y (TTM)38.19%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%47.15%
Revenue 1Y (TTM)12.83%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%13.86%
3.2 Future
Based on estimates for the next years, ATGE will show a very strong growth in Earnings Per Share. The EPS will grow by 20.50% on average per year.
Based on estimates for the next years, ATGE will show a quite strong growth in Revenue. The Revenue will grow by 8.66% on average per year.
EPS Next Y26.74%
EPS Next 2Y20.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.78%
Revenue Next 2Y8.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.36, which indicates a correct valuation of ATGE.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than the industry average as 76.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ATGE to the average of the S&P500 Index (29.63), we can say ATGE is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.37 indicates a correct 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 82.81% of the companies listed in the same industry.
ATGE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 79.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 11.22 |
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 a very decent profitability rating, which may justify a higher PE ratio.
ATGE's earnings are expected to grow with 20.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)1.35
EPS Next 2Y20.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
97.67
-7.6 (-7.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change-5.06%
Ins Owners1.43%
Ins Owner Change1.87%
Market Cap3.64B
Analysts86.67
Price Target122.06 (24.97%)
Short Float %2.44%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)20.48%
Min EPS beat(2)11.43%
Max EPS beat(2)29.53%
EPS beat(4)4
Avg EPS beat(4)18.26%
Min EPS beat(4)4.93%
Max EPS beat(4)29.53%
EPS beat(8)8
Avg EPS beat(8)16.83%
EPS beat(12)12
Avg EPS beat(12)15.43%
EPS beat(16)13
Avg EPS beat(16)9.03%
Revenue beat(2)2
Avg Revenue beat(2)2.58%
Min Revenue beat(2)2.26%
Max Revenue beat(2)2.9%
Revenue beat(4)4
Avg Revenue beat(4)2.31%
Min Revenue beat(4)0.81%
Max Revenue beat(4)3.29%
Revenue beat(8)8
Avg Revenue beat(8)2.02%
Revenue beat(12)10
Avg Revenue beat(12)9.45%
Revenue beat(16)10
Avg Revenue beat(16)3.53%
PT rev (1m)10.88%
PT rev (3m)21.07%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)6.11%
EPS NY rev (3m)8.01%
Revenue NQ rev (1m)1.79%
Revenue NQ rev (3m)3.03%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.36 | ||
| Fwd PE | 13.37 | ||
| P/S | 2.16 | ||
| P/FCF | 15.56 | ||
| P/OCF | 13.31 | ||
| P/B | 2.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.22 |
EPS(TTM)5.97
EY6.11%
EPS(NY)7.3
Fwd EY7.48%
FCF(TTM)6.28
FCFY6.43%
OCF(TTM)7.34
OCFY7.52%
SpS45.3
BVpS38.62
TBVpS-7.88
PEG (NY)0.61
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.65% | ||
| ROE | 14.47% | ||
| ROCE | 14.11% | ||
| ROIC | 12.33% | ||
| ROICexc | 13.45% | ||
| ROICexgc | 69.99% | ||
| OM | 19.55% | ||
| PM (TTM) | 12.34% | ||
| GM | 56.72% | ||
| FCFM | 13.85% |
ROA(3y)6.19%
ROA(5y)3.41%
ROE(3y)12.42%
ROE(5y)7.22%
ROIC(3y)7.66%
ROIC(5y)7.12%
ROICexc(3y)8.63%
ROICexc(5y)8.5%
ROICexgc(3y)54.53%
ROICexgc(5y)42.18%
ROCE(3y)8.76%
ROCE(5y)8.15%
ROICexcg growth 3Y89.57%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y21.59%
ROICexc growth 5Y2.02%
OM growth 3Y-1.18%
OM growth 5Y-2.38%
PM growth 3Y3.49%
PM growth 5Y-1.67%
GM growth 3Y4.44%
GM growth 5Y0.9%
F-Score9
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 65.88% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.1% | ||
| Profit Quality | 112.28% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.23 |
F-Score9
WACC10.91%
ROIC/WACC1.13
Cap/Depr(3y)40.93%
Cap/Depr(5y)64.07%
Cap/Sales(3y)2.63%
Cap/Sales(5y)3.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.19%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%47.15%
EPS Next Y26.74%
EPS Next 2Y20.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.83%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%13.86%
Revenue Next Year10.78%
Revenue Next 2Y8.66%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y60.1%
EBIT growth 3Y19.36%
EBIT growth 5Y6.74%
EBIT Next Year44.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y846.1%
FCF growth 3Y19.81%
FCF growth 5Y12%
OCF growth 1Y438.96%
OCF growth 3Y15.45%
OCF growth 5Y7.62%