ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATGE - US00737L1035 - Common Stock
104.47 USD
+1 (+0.97%)
104.47 USD
0 (0%)
Overall ATGE gets a fundamental rating of 7 out of 10. We evaluated ATGE against 76 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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 (8.81%) than 77.63% of its industry peers.
With a decent Return On Equity value of 17.34%, ATGE is doing good in the industry, outperforming 77.63% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.67%, ATGE belongs to the top of the industry, outperforming 85.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATGE is in line with the industry average of 10.55%.
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
The Profit Margin of ATGE (13.79%) is better than 82.89% of its industry peers.
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 82.89% of its industry peers.
ATGE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 57.11%, ATGE is in the better half of the industry, outperforming 72.37% 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
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.
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
An Altman-Z score of 4.05 indicates that ATGE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATGE (4.05) is better than 85.53% of its industry peers.
The Debt to FCF ratio of ATGE is 1.71, which is an excellent value as it means it would take ATGE, only 1.71 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.71, ATGE belongs to the best of the industry, outperforming 81.58% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 4.05 |
ROIC/WACC1.49
WACC8.48%
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 comparable to the rest of the 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.
ATGE has a Quick ratio of 0.98. This is comparable to the rest of the industry: ATGE outperforms 46.05% 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 | 0.98 | ||
| 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
Looking at the last year, ATGE shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
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
Based on estimates for the next years, ATGE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.23% on average per year.
Based on estimates for the next years, ATGE will show a small growth in Revenue. The Revenue will grow by 6.71% on average per year.
EPS Next Y19.67%
EPS Next 2Y16.31%
EPS Next 3Y17.23%
EPS Next 5YN/A
Revenue Next Year8.63%
Revenue Next 2Y7.36%
Revenue Next 3Y6.71%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.63 indicates a correct valuation of ATGE.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than 72.37% of the companies in the same industry.
ATGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 11.56, the valuation of ATGE can be described as reasonable.
82.89% of the companies in the same industry are more expensive than ATGE, based on the Price/Forward Earnings ratio.
ATGE is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than 67.11% of the companies in the same industry.
ATGE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATGE is cheaper than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 9.94 |
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 17.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)0.62
EPS Next 2Y16.31%
EPS Next 3Y17.23%
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
104.47
+1 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners102.79%
Inst Owner Change0%
Ins Owners1.45%
Ins Owner Change7.49%
Market Cap3.80B
Revenue(TTM)1.83B
Net Income(TTM)252.73M
Analysts88
Price Target161.42 (54.51%)
Short Float %3.55%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-4.95%
PT rev (3m)3.94%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-3.53%
EPS NY rev (1m)0.64%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 11.56 | ||
| P/S | 2.07 | ||
| P/FCF | 11.74 | ||
| P/OCF | 10.01 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.94 |
EPS(TTM)7.14
EY6.83%
EPS(NY)9.04
Fwd EY8.65%
FCF(TTM)8.9
FCFY8.52%
OCF(TTM)10.44
OCFY9.99%
SpS50.46
BVpS40.12
TBVpS-7.33
PEG (NY)0.74
PEG (5Y)0.62
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 | 4.05 |
F-Score9
WACC8.48%
ROIC/WACC1.49
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 Y19.67%
EPS Next 2Y16.31%
EPS Next 3Y17.23%
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 3Y6.71%
Revenue Next 5YN/A
EBIT growth 1Y22.99%
EBIT growth 3Y30.39%
EBIT growth 5Y15.73%
EBIT Next Year36.74%
EBIT Next 3Y16.64%
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 fundamental rating for ATGE stock?
ChartMill assigns a fundamental rating of 7 / 10 to ATGE.
Can you provide the valuation status for ADTALEM GLOBAL EDUCATION INC?
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.
Can you provide the financial health for ATGE stock?
The financial health rating of ADTALEM GLOBAL EDUCATION INC (ATGE) is 7 / 10.
How sustainable is the dividend of ADTALEM GLOBAL EDUCATION INC (ATGE) stock?
The dividend rating of ADTALEM GLOBAL EDUCATION INC (ATGE) is 0 / 10 and the dividend payout ratio is 0%.