ADTALEM GLOBAL EDUCATION INC (ATGE)
US00737L1035 - Common Stock
Taking everything into account, ATGE scores 5 out of 10 in our fundamental rating. ATGE was compared to 70 industry peers in the Diversified Consumer Services industry. ATGE has only an average score on both its financial health and profitability. ATGE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ATGE was profitable.
ATGE had a positive operating cash flow in the past year.
Of the past 5 years ATGE 4 years were profitable.
Each year in the past 5 years ATGE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.11%, ATGE is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
With a decent Return On Equity value of 12.40%, ATGE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
ATGE has a Return On Invested Capital of 11.24%. This is amongst the best in the industry. ATGE outperforms 84.13% 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 11.87%.
The 3 year average ROIC (7.66%) for ATGE is below the current ROIC(11.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.4% | ||
| ROIC | 11.24% |
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
Looking at the Profit Margin, with a value of 10.55%, ATGE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of ATGE has declined.
With an excellent Operating Margin value of 17.84%, ATGE belongs to the best of the industry, outperforming 82.54% of the companies in the same industry.
ATGE's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 56.16%, ATGE is doing good in the industry, outperforming 69.84% 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 | 17.84% | ||
| PM (TTM) | 10.55% | ||
| GM | 56.16% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATGE is destroying 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
An Altman-Z score of 3.68 indicates that ATGE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATGE (3.68) is better than 80.95% of its industry peers.
The Debt to FCF ratio of ATGE is 2.69, which is a good value as it means it would take ATGE, 2.69 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.69, ATGE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
ATGE has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
ATGE has a worse Debt to Equity ratio (0.47) than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.89
WACC12.69%
2.3 Liquidity
A Current Ratio of 0.94 indicates that ATGE may have some problems paying its short term obligations.
ATGE has a Current ratio of 0.94. This is in the lower half of the industry: ATGE underperforms 65.08% of its industry peers.
ATGE has a Quick Ratio of 0.94. 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 Quick ratio (0.94) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
ATGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.53%, which is quite impressive.
The Earnings Per Share has been growing by 12.11% on average over the past years. This is quite good.
ATGE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.25%.
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)26.53%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%38.71%
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%13.16%
3.2 Future
ATGE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.80% yearly.
The Revenue is expected to grow by 7.77% on average over the next years.
EPS Next Y19.44%
EPS Next 2Y17.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.41%
Revenue Next 2Y7.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ATGE is valuated rather expensively with a Price/Earnings ratio of 17.52.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than the industry average as 76.19% 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 27.34.
With a Price/Forward Earnings ratio of 13.53, ATGE is valued correctly.
Based on the Price/Forward Earnings ratio, ATGE is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
ATGE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 13.53 |
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 73.02% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.68 | ||
| EV/EBITDA | 10.94 |
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 17.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)1.45
EPS Next 2Y17.8%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ATGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADTALEM GLOBAL EDUCATION INC
NYSE:ATGE (1/8/2025, 8:04:00 PM)
After market: 94.41 0 (0%)94.41
+0.87 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners106.48%
Inst Owner Change-0.02%
Ins Owners1.38%
Ins Owner Change-1.47%
Market Cap3.54B
Analysts86.67
Price Target96.9 (2.64%)
Short Float %3.73%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)8.18%
Min EPS beat(2)4.93%
Max EPS beat(2)11.43%
EPS beat(4)4
Avg EPS beat(4)16.53%
Min EPS beat(4)4.93%
Max EPS beat(4)27.14%
EPS beat(8)8
Avg EPS beat(8)16.88%
EPS beat(12)11
Avg EPS beat(12)10.99%
EPS beat(16)13
Avg EPS beat(16)7.98%
Revenue beat(2)2
Avg Revenue beat(2)1.85%
Min Revenue beat(2)0.81%
Max Revenue beat(2)2.9%
Revenue beat(4)4
Avg Revenue beat(4)2.6%
Min Revenue beat(4)0.81%
Max Revenue beat(4)3.42%
Revenue beat(8)8
Avg Revenue beat(8)13.98%
Revenue beat(12)9
Avg Revenue beat(12)8.16%
Revenue beat(16)9
Avg Revenue beat(16)3.37%
PT rev (1m)2.52%
PT rev (3m)9.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)1.79%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)2.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 13.53 | ||
| P/S | 2.17 | ||
| P/FCF | 14.68 | ||
| P/OCF | 12.4 | ||
| P/B | 2.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.94 |
EPS(TTM)5.39
EY5.71%
EPS(NY)6.98
Fwd EY7.39%
FCF(TTM)6.43
FCFY6.81%
OCF(TTM)7.61
OCFY8.06%
SpS43.56
BVpS37.08
TBVpS-9.21
PEG (NY)0.9
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.11% | ||
| ROE | 12.4% | ||
| ROCE | 12.85% | ||
| ROIC | 11.24% | ||
| ROICexc | 12.72% | ||
| ROICexgc | 95.58% | ||
| OM | 17.84% | ||
| PM (TTM) | 10.55% | ||
| GM | 56.16% | ||
| FCFM | 14.77% |
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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.69 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 65.6% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.54% | ||
| Profit Quality | 139.96% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 3.68 |
F-Score7
WACC12.69%
ROIC/WACC0.89
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)26.53%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%38.71%
EPS Next Y19.44%
EPS Next 2Y17.8%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.25%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%13.16%
Revenue Next Year9.41%
Revenue Next 2Y7.77%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.32%
EBIT growth 3Y19.36%
EBIT growth 5Y6.74%
EBIT Next Year37.8%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y661.36%
FCF growth 3Y19.81%
FCF growth 5Y12%
OCF growth 1Y368.23%
OCF growth 3Y15.45%
OCF growth 5Y7.62%