ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - NYSE:ATGE - US00737L1035 - Common Stock
148.62 USD
-1.11 (-0.74%)
148.62 USD
0 (0%)
Taking everything into account, ATGE scores 6 out of 10 in our fundamental rating. ATGE was compared to 75 industry peers in the Diversified Consumer Services industry. ATGE gets an excellent profitability rating and is at the same time showing great financial health properties. ATGE is not valued too expensively and it also shows a decent growth rate. These ratings would make ATGE suitable for 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.
ATGE had positive earnings in each of the past 5 years.
ATGE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATGE has a better Return On Assets (8.61%) than 80.00% of its industry peers.
ATGE has a better Return On Equity (16.54%) than 81.33% of its industry peers.
ATGE has a better Return On Invested Capital (12.44%) than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATGE is in line with the industry average of 9.63%.
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
ATGE has a Profit Margin of 13.26%. This is amongst the best in the industry. ATGE outperforms 84.00% 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 82.67% of its industry peers.
In the last couple of years the Operating Margin of ATGE has grown nicely.
ATGE has a Gross Margin of 56.86%. This is in the better half of the industry: ATGE outperforms 69.33% of its industry peers.
ATGE's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, ATGE has less shares outstanding
The number of shares outstanding for ATGE has been reduced compared to 5 years ago.
Compared to 1 year ago, ATGE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.89 indicates that ATGE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.89, ATGE belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of ATGE is 1.92, which is an excellent value as it means it would take ATGE, only 1.92 years of fcf income to pay off all of its debts.
ATGE has a better Debt to FCF ratio (1.92) than 80.00% of its industry peers.
ATGE has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, ATGE is in line with its industry, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 4.89 |
ROIC/WACC1.47
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.82 indicates that ATGE may have some problems paying its short term obligations.
ATGE has a worse Current ratio (0.82) than 68.00% of its industry peers.
ATGE has a Quick 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.
The Quick ratio of ATGE (0.82) is worse than 65.33% of its industry peers.
ATGE does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 32.80% over the past year.
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)32.8%
EPS 3Y23.46%
EPS 5Y23.77%
EPS Q2Q%21.17%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%11.51%
3.2 Future
Based on estimates for the next years, ATGE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
Based on estimates for the next years, ATGE will show a small growth in Revenue. The Revenue will grow by 7.44% on average per year.
EPS Next Y18.87%
EPS Next 2Y15.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.57%
Revenue Next 2Y7.44%
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.
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
ATGE is valuated rather expensively with a Price/Earnings ratio of 22.25.
65.33% of the companies in the same industry are more expensive than ATGE, based on the Price/Earnings ratio.
ATGE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.49.
The Price/Forward Earnings ratio is 18.72, which indicates a rather expensive current valuation of ATGE.
ATGE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATGE is cheaper than 66.67% of the companies in the same industry.
ATGE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.25 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ATGE.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 73.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.58 | ||
| EV/EBITDA | 14.46 |
4.3 Compensation for Growth
ATGE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ATGE may justify a higher PE ratio.
A more expensive valuation may be justified as ATGE's earnings are expected to grow with 15.84% in the coming years.
PEG (NY)1.18
PEG (5Y)0.94
EPS Next 2Y15.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
148.62
-1.11 (-0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change0.09%
Ins Owners1.36%
Ins Owner Change6.41%
Market Cap5.34B
Analysts88
Price Target155.29 (4.49%)
Short Float %2.58%
Short Ratio2.29
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)0%
PT rev (3m)7.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.87%
EPS NY rev (1m)2.57%
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 | 22.25 | ||
| Fwd PE | 18.72 | ||
| P/S | 2.99 | ||
| P/FCF | 18.58 | ||
| P/OCF | 15.82 | ||
| P/B | 3.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.46 |
EPS(TTM)6.68
EY4.49%
EPS(NY)7.94
Fwd EY5.34%
FCF(TTM)8
FCFY5.38%
OCF(TTM)9.4
OCFY6.32%
SpS49.73
BVpS39.87
TBVpS-8.15
PEG (NY)1.18
PEG (5Y)0.94
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%
ROICexcg growth 3Y43.58%
ROICexcg 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 | 4.89 |
F-Score8
WACC8.45%
ROIC/WACC1.47
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)32.8%
EPS 3Y23.46%
EPS 5Y23.77%
EPS Q2Q%21.17%
EPS Next Y18.87%
EPS Next 2Y15.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%11.51%
Revenue Next Year8.57%
Revenue Next 2Y7.44%
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%