ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATGE - US00737L1035 - Common Stock
94.54 USD
-1.57 (-1.63%)
94.54 USD
0 (0%)
ATGE gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. ATGE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on ATGE. These ratings would make ATGE suitable for value and 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.
Each year in the past 5 years ATGE had a positive operating cash flow.
1.2 Ratios
ATGE has a better Return On Assets (8.81%) than 77.92% of its industry peers.
Looking at the Return On Equity, with a value of 17.34%, ATGE belongs to the top of the industry, outperforming 80.52% 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 84.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ATGE is in line with the industry average of 9.42%.
The last Return On Invested Capital (12.67%) for ATGE is above the 3 year average (9.63%), which is a sign of increasing profitability.
| 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
ATGE has a Profit Margin of 13.79%. This is amongst the best in the industry. ATGE outperforms 84.42% 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 84.42% of its industry peers.
In the last couple of years the Operating Margin of ATGE has grown nicely.
ATGE has a Gross Margin of 57.11%. This is in the better half of the industry: ATGE outperforms 70.13% 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) | 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.
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 3.92 indicates that ATGE is not in any danger for bankruptcy at the moment.
ATGE has a Altman-Z score of 3.92. This is amongst the best in the industry. ATGE outperforms 85.71% 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.
ATGE has a better Debt to FCF ratio (1.71) than 80.52% of its industry peers.
ATGE has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.38, ATGE perfoms like the industry average, outperforming 46.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 3.92 |
ROIC/WACC1.5
WACC8.44%
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's Current ratio of 0.98 is in line compared to the rest of the industry. ATGE outperforms 40.26% of 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.
Looking at the Quick ratio, with a value of 0.98, ATGE is in line with its industry, 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.
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 12.24% in the past year. This is quite good.
ATGE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.19% yearly.
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
ATGE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.79% yearly.
ATGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
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.
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
Based on the Price/Earnings ratio of 13.24, the valuation of ATGE can be described as correct.
ATGE's Price/Earnings ratio is a bit cheaper when compared to the industry. ATGE is cheaper than 76.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of ATGE to the average of the S&P500 Index (26.46), we can say ATGE is valued slightly cheaper.
ATGE is valuated reasonably with a Price/Forward Earnings ratio of 10.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 81.82% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.10. ATGE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than 70.13% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATGE is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.63 | ||
| EV/EBITDA | 9.2 |
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 an outstanding profitability rating, which 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 |
94.54
-1.57 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.02%
Inst Owner Change1.48%
Ins Owners1.39%
Ins Owner Change7.45%
Market Cap3.43B
Revenue(TTM)1.83B
Net Income(TTM)252.73M
Analysts88
Price Target169.83 (79.64%)
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 | 13.24 | ||
| Fwd PE | 10.56 | ||
| P/S | 1.87 | ||
| P/FCF | 10.63 | ||
| P/OCF | 9.06 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.2 |
EPS(TTM)7.14
EY7.55%
EPS(NY)8.96
Fwd EY9.47%
FCF(TTM)8.9
FCFY9.41%
OCF(TTM)10.44
OCFY11.04%
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 | 3.92 |
F-Score9
WACC8.44%
ROIC/WACC1.5
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%.