ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
NYSE:ATGE - New York Stock Exchange, Inc. - US00737L1035 - Common Stock - Currency: USD
Overall ATGE gets a fundamental rating of 6 out of 10. We evaluated ATGE against 71 industry peers in the Diversified Consumer Services industry. While ATGE has a great profitability rating, there are some minor concerns on its financial health. ATGE is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make ATGE suitable for value and growth 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.
ATGE had positive earnings in 4 of the past 5 years.
ATGE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.33%, ATGE is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
The Return On Equity of ATGE (16.21%) is better than 80.28% of its industry peers.
ATGE has a better Return On Invested Capital (13.23%) than 90.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATGE is below the industry average of 10.64%.
The last Return On Invested Capital (13.23%) for ATGE is above the 3 year average (7.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 16.21% | ||
| ROIC | 13.23% |
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
ATGE has a Profit Margin of 13.34%. This is amongst the best in the industry. ATGE outperforms 84.51% of its industry peers.
ATGE's Profit Margin has declined in the last couple of years.
The Operating Margin of ATGE (19.55%) is better than 84.51% of its industry peers.
In the last couple of years the Operating Margin of ATGE has declined.
ATGE has a Gross Margin of 56.63%. This is in the better half of the industry: ATGE outperforms 73.24% of its industry peers.
ATGE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.55% | ||
| PM (TTM) | 13.34% | ||
| GM | 56.63% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATGE is still creating some value.
Compared to 1 year ago, ATGE has less shares outstanding
ATGE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ATGE has been reduced compared to a year ago.
2.2 Solvency
ATGE has an Altman-Z score of 4.24. This indicates that ATGE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.24, ATGE is in the better half of the industry, outperforming 78.87% of the companies in the same industry.
ATGE has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.90, ATGE belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that ATGE is not too dependend on debt financing.
The Debt to Equity ratio of ATGE (0.39) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 4.24 |
ROIC/WACC1.49
WACC8.86%
2.3 Liquidity
A Current Ratio of 0.83 indicates that ATGE may have some problems paying its short term obligations.
ATGE has a worse Current ratio (0.83) than 63.38% of its industry peers.
ATGE has a Quick Ratio of 0.83. 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 0.83, ATGE is doing worse than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
ATGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.25%, 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.10%.
The Revenue has been growing by 9.34% on average over the past years. This is quite good.
EPS 1Y (TTM)36.25%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%28%
Revenue 1Y (TTM)13.1%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%12.94%
3.2 Future
ATGE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.13% yearly.
The Revenue is expected to grow by 8.09% on average over the next years. This is quite good.
EPS Next Y32.57%
EPS Next 2Y23.02%
EPS Next 3Y20.13%
EPS Next 5YN/A
Revenue Next Year12.65%
Revenue Next 2Y9.46%
Revenue Next 3Y8.09%
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
The Price/Earnings ratio is 18.46, which indicates a rather expensive current valuation of ATGE.
Compared to the rest of the industry, the Price/Earnings ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 76.06% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. ATGE is valued slightly cheaper when compared to this.
ATGE is valuated correctly with a Price/Forward Earnings ratio of 15.50.
ATGE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ATGE is cheaper than 71.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ATGE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than 67.61% 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 83.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.59 | ||
| EV/EBITDA | 11.69 |
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 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 20.13% in the coming years.
PEG (NY)0.57
PEG (5Y)1.52
EPS Next 2Y23.02%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
117.99
-0.86 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.86%
Inst Owner Change0.01%
Ins Owners1.35%
Ins Owner Change-1.17%
Market Cap4.24B
Analysts88
Price Target144.07 (22.1%)
Short Float %2.95%
Short Ratio1.9
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)21.72%
Min EPS beat(2)13.91%
Max EPS beat(2)29.53%
EPS beat(4)4
Avg EPS beat(4)14.95%
Min EPS beat(4)4.93%
Max EPS beat(4)29.53%
EPS beat(8)8
Avg EPS beat(8)15.91%
EPS beat(12)12
Avg EPS beat(12)16.29%
EPS beat(16)13
Avg EPS beat(16)9.76%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)2.26%
Max Revenue beat(2)2.26%
Revenue beat(4)4
Avg Revenue beat(4)2.06%
Min Revenue beat(4)0.81%
Max Revenue beat(4)2.9%
Revenue beat(8)8
Avg Revenue beat(8)2.04%
Revenue beat(12)11
Avg Revenue beat(12)9.69%
Revenue beat(16)11
Avg Revenue beat(16)3.84%
PT rev (1m)14.37%
PT rev (3m)18.04%
EPS NQ rev (1m)1.32%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)2.39%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.46 | ||
| Fwd PE | 15.5 | ||
| P/S | 2.43 | ||
| P/FCF | 14.59 | ||
| P/OCF | 13.3 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.69 |
EPS(TTM)6.39
EY5.42%
EPS(NY)7.61
Fwd EY6.45%
FCF(TTM)8.09
FCFY6.85%
OCF(TTM)8.87
OCFY7.52%
SpS48.46
BVpS39.88
TBVpS-8.26
PEG (NY)0.57
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 16.21% | ||
| ROCE | 15.13% | ||
| ROIC | 13.23% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 98.95% | ||
| OM | 19.55% | ||
| PM (TTM) | 13.34% | ||
| GM | 56.63% | ||
| FCFM | 16.69% |
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-Score9
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 52.64% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.93% | ||
| Profit Quality | 125.1% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.24 |
F-Score9
WACC8.86%
ROIC/WACC1.49
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)36.25%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%28%
EPS Next Y32.57%
EPS Next 2Y23.02%
EPS Next 3Y20.13%
EPS Next 5YN/A
Revenue 1Y (TTM)13.1%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%12.94%
Revenue Next Year12.65%
Revenue Next 2Y9.46%
Revenue Next 3Y8.09%
Revenue Next 5YN/A
EBIT growth 1Y49.26%
EBIT growth 3Y19.36%
EBIT growth 5Y6.74%
EBIT Next Year49.24%
EBIT Next 3Y20.59%
EBIT Next 5YN/A
FCF growth 1Y260.95%
FCF growth 3Y19.81%
FCF growth 5Y12%
OCF growth 1Y194.19%
OCF growth 3Y15.45%
OCF growth 5Y7.62%