Looking for growth without the hefty price tag? Consider ADTALEM GLOBAL EDUCATION INC (NYSE:ATGE).

Our stock screening tool has pinpointed ADTALEM GLOBAL EDUCATION INC (NYSE:ATGE) as a growth stock that isn't overvalued. ATGE is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Understanding ATGE's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. ATGE was assigned a score of 7 for growth:

• The Earnings Per Share has grown by an impressive 38.19% over the past year.
• The Earnings Per Share has been growing by 12.11% on average over the past years. This is quite good.
• ATGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.83%.
• ATGE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.34% yearly.
• The Earnings Per Share is expected to grow by 20.50% on average over the next years. This is a very strong growth
• 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.

Evaluating Valuation: ATGE

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. ATGE has achieved a 6 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 71.23% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 28.18. ATGE is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, ATGE is valued a bit cheaper than the industry average as 72.60% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, ATGE is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than 63.01% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 76.71% of the companies listed in the same industry.
• 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 20.50% in the coming years.

Looking at the Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. ATGE scores a 7 out of 10:

• An Altman-Z score of 4.39 indicates that ATGE is not in any danger for bankruptcy at the moment.
• ATGE has a Altman-Z score of 4.39. This is amongst the best in the industry. ATGE outperforms 84.93% of its industry peers.
• The Debt to FCF ratio of ATGE is 2.78, which is a good value as it means it would take ATGE, 2.78 years of fcf income to pay off all of its debts.
• ATGE has a better Debt to FCF ratio (2.78) than 80.82% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that ATGE is not too dependend on debt financing.

A Closer Look at Profitability for ATGE

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. ATGE was assigned a score of 7 for profitability:

• Looking at the Return On Assets, with a value of 7.65%, ATGE belongs to the top of the industry, outperforming 82.19% of the companies in the same industry.
• With a decent Return On Equity value of 14.47%, ATGE is doing good in the industry, outperforming 79.45% of the companies in the same industry.
• ATGE has a Return On Invested Capital of 12.33%. This is amongst the best in the industry. ATGE outperforms 89.04% of its industry peers.
• The last Return On Invested Capital (12.33%) for ATGE is above the 3 year average (7.66%), which is a sign of increasing profitability.
• ATGE has a Profit Margin of 12.34%. This is amongst the best in the industry. ATGE outperforms 86.30% of its industry peers.
• Looking at the Operating Margin, with a value of 19.55%, ATGE belongs to the top of the industry, outperforming 86.30% of the companies in the same industry.
• ATGE has a Gross Margin of 56.72%. This is in the better half of the industry: ATGE outperforms 73.97% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of ATGE contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.