ADTALEM GLOBAL EDUCATION INC (ATGE)
US00737L1035 - Common Stock
ATGE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 67 industry peers in the Diversified Consumer Services industry. ATGE has an excellent profitability rating, but there are some minor concerns on its financial health. ATGE may be a bit undervalued, certainly considering the very reasonable score on growth This makes ATGE very considerable for value investing!
1. Profitability
1.1 Basic Checks
ATGE had positive earnings in the past year.
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
ATGE has a Return On Assets of 4.04%. This is in the better half of the industry: ATGE outperforms 71.88% of its industry peers.
ATGE has a better Return On Equity (8.30%) than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.39%, ATGE belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
ATGE had an Average Return On Invested Capital over the past 3 years of 6.26%. This is significantly below the industry average of 14.79%.
The 3 year average ROIC (6.26%) for ATGE is below the current ROIC(9.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 8.3% | ||
| ROIC | 9.39% |
ROA(3y)5.29%
ROA(5y)3.26%
ROE(3y)10.88%
ROE(5y)6.59%
ROIC(3y)6.26%
ROIC(5y)7.08%
1.3 Margins
ATGE has a Profit Margin of 7.12%. This is in the better half of the industry: ATGE outperforms 73.44% of its industry peers.
In the last couple of years the Profit Margin of ATGE has grown nicely.
The Operating Margin of ATGE (14.81%) is better than 78.13% of its industry peers.
In the last couple of years the Operating Margin of ATGE has declined.
Looking at the Gross Margin, with a value of 55.84%, ATGE is in the better half of the industry, outperforming 65.63% 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 | 14.81% | ||
| PM (TTM) | 7.12% | ||
| GM | 55.84% |
OM growth 3Y-1.89%
OM growth 5Y-6.6%
PM growth 3YN/A
PM growth 5Y12.83%
GM growth 3Y1.17%
GM growth 5Y0.05%
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.
ATGE has less shares outstanding than it did 5 years ago.
ATGE has a better debt/assets ratio than last year.
2.2 Solvency
ATGE has an Altman-Z score of 3.14. This indicates that ATGE is financially healthy and has little risk of bankruptcy at the moment.
ATGE has a Altman-Z score of 3.14. This is amongst the best in the industry. ATGE outperforms 82.81% of its industry peers.
ATGE has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as ATGE would need 2.71 years to pay back of all of its debts.
ATGE has a Debt to FCF ratio of 2.71. This is in the better half of the industry: ATGE outperforms 78.13% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that ATGE is not too dependend on debt financing.
ATGE has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: ATGE underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 3.14 |
ROIC/WACC1.04
WACC9.04%
2.3 Liquidity
A Current Ratio of 0.76 indicates that ATGE may have some problems paying its short term obligations.
ATGE has a worse Current ratio (0.76) than 71.88% of its industry peers.
ATGE has a Quick Ratio of 0.76. 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 (0.76) than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.45% over the past year.
The Earnings Per Share has been growing by 9.05% 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 -14.57%.
ATGE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.60% yearly.
EPS 1Y (TTM)4.45%
EPS 3Y22.33%
EPS 5Y9.05%
EPS Q2Q%32.74%
Revenue 1Y (TTM)-14.57%
Revenue growth 3Y11.31%
Revenue growth 5Y8.6%
Sales Q2Q%11.81%
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 16.76% on average per year.
Based on estimates for the next years, ATGE will show a small growth in Revenue. The Revenue will grow by 6.97% on average per year.
EPS Next Y19.44%
EPS Next 2Y17%
EPS Next 3Y16.76%
EPS Next 5YN/A
Revenue Next Year8.96%
Revenue Next 2Y7.21%
Revenue Next 3Y6.97%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.73, ATGE is valued correctly.
82.81% 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 rather cheap valuation when compared to the S&P500 average which is at 28.05.
ATGE is valuated reasonably with a Price/Forward Earnings ratio of 11.17.
Based on the Price/Forward Earnings ratio, ATGE is valued a bit cheaper than 79.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ATGE to the average of the S&P500 Index (20.07), we can say ATGE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
ATGE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ATGE is cheaper than 68.75% of the companies 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 85.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 9.44 |
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 decent 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 16.76% in the coming years.
PEG (NY)0.71
PEG (5Y)1.52
EPS Next 2Y17%
EPS Next 3Y16.76%
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADTALEM GLOBAL EDUCATION INC
NYSE:ATGE (5/31/2024, 7:24:18 PM)
After market: 64.39 0 (0%)64.39
-1.15 (-1.75%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.73 | ||
| Fwd PE | 11.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.71
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 8.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.81% | ||
| PM (TTM) | 7.12% | ||
| GM | 55.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)4.45%
EPS 3Y22.33%
EPS 5Y
EPS Q2Q%
EPS Next Y19.44%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.57%
Revenue growth 3Y11.31%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y