ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATGE - US00737L1035 - Common Stock
94.94 USD
+0.59 (+0.63%)
We assign a fundamental rating of 7 out of 10 to ATGE. ATGE was compared to 77 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 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.
ATGE had a positive operating cash flow in the past year.
In the past 5 years ATGE has always been 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 (8.81%) than 77.92% of its industry peers.
ATGE has a better Return On Equity (17.34%) than 80.52% of its industry peers.
ATGE has a better Return On Invested Capital (12.67%) than 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 9.42%.
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
Looking at the Profit Margin, with a value of 13.79%, ATGE belongs to the top 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's Operating Margin of 19.55% is amongst the best of the industry. ATGE outperforms 84.42% of its industry peers.
In the last couple of years the Operating Margin of ATGE has grown nicely.
The Gross Margin of ATGE (57.11%) is better than 70.13% of its industry peers.
ATGE's Gross Margin has been stable in the last couple of years.
| 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.
ATGE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ATGE has been reduced compared to 5 years ago.
ATGE has a better debt/assets ratio than last year.
2.2 Solvency
ATGE has an Altman-Z score of 3.89. This indicates that ATGE is financially healthy and has little risk of bankruptcy at the moment.
ATGE has a Altman-Z score of 3.89. This is amongst the best in the industry. ATGE outperforms 85.71% 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.
Looking at the Debt to FCF ratio, with a value of 1.71, ATGE belongs to the top of the industry, outperforming 80.52% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that ATGE is not too dependend on debt financing.
ATGE has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 3.89 |
ROIC/WACC1.51
WACC8.39%
2.3 Liquidity
ATGE has a Current 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.
ATGE has a Current ratio (0.98) which is in line with its industry peers.
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.
With a Quick ratio value of 0.98, ATGE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
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 | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.47% over the past year.
The Earnings Per Share has been growing by 23.77% on average over the past years. This is a very strong growth
The Revenue has grown by 12.24% in the past year. This is quite good.
Measured over the past years, ATGE shows a quite strong growth in Revenue. The Revenue has been growing by 11.19% on average per year.
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
With a Price/Earnings ratio of 13.30, ATGE is valued correctly.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than the industry average as 75.32% of the companies are valued more expensively.
ATGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.37.
A Price/Forward Earnings ratio of 10.60 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 83.12% of the companies listed in the same industry.
ATGE is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 70.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ATGE is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 9.05 |
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.
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)0.7
PEG (5Y)0.56
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 (12/4/2025, 10:39:28 AM)
94.94
+0.59 (+0.63%)
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 Cap3.45B
Revenue(TTM)1.83B
Net Income(TTM)252.73M
Analysts88
Price Target169.83 (78.88%)
Short Float %2.69%
Short Ratio1.66
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)-2.98%
EPS NY rev (1m)0%
EPS NY rev (3m)2.57%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 10.6 | ||
| P/S | 1.88 | ||
| P/FCF | 10.67 | ||
| P/OCF | 9.1 | ||
| P/B | 2.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.05 |
EPS(TTM)7.14
EY7.52%
EPS(NY)8.96
Fwd EY9.43%
FCF(TTM)8.9
FCFY9.37%
OCF(TTM)10.44
OCFY10.99%
SpS50.46
BVpS40.12
TBVpS-7.33
PEG (NY)0.7
PEG (5Y)0.56
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 | 3.89 |
F-Score9
WACC8.39%
ROIC/WACC1.51
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%.