ADTALEM GLOBAL EDUCATION INC (ATGE)
US00737L1035 - Common Stock
Taking everything into account, ATGE scores 5 out of 10 in our fundamental rating. ATGE was compared to 65 industry peers in the Diversified Consumer Services industry. ATGE scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ATGE.
1. Profitability
1.1 Basic Checks
In the past year ATGE was profitable.
ATGE had a positive operating cash flow in the past year.
Of the past 5 years ATGE 4 years were profitable.
ATGE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ATGE has a better Return On Assets (4.39%) than 79.69% of its industry peers.
ATGE's Return On Equity of 8.66% is fine compared to the rest of the industry. ATGE outperforms 75.00% of its industry peers.
ATGE's Return On Invested Capital of 8.13% is amongst the best of the industry. ATGE outperforms 82.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ATGE is significantly below the industry average of 14.93%.
The 3 year average ROIC (6.26%) for ATGE is below the current ROIC(8.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 8.66% | ||
| ROIC | 8.13% |
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
Looking at the Profit Margin, with a value of 7.93%, ATGE is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
In the last couple of years the Profit Margin of ATGE has grown nicely.
Looking at the Operating Margin, with a value of 13.78%, ATGE is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
In the last couple of years the Operating Margin of ATGE has declined.
The Gross Margin of ATGE (55.19%) is better than 64.06% 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 | 13.78% | ||
| PM (TTM) | 7.93% | ||
| GM | 55.19% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ATGE is destroying 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.
The debt/assets ratio for ATGE has been reduced compared to a year ago.
2.2 Solvency
ATGE has an Altman-Z score of 2.99. This indicates that ATGE is financially healthy and has little risk of bankruptcy at the moment.
ATGE has a better Altman-Z score (2.99) than 78.13% of its industry peers.
The Debt to FCF ratio of ATGE is 3.54, which is a good value as it means it would take ATGE, 3.54 years of fcf income to pay off all of its debts.
ATGE has a better Debt to FCF ratio (3.54) than 75.00% of its industry peers.
ATGE has a Debt/Equity ratio of 0.51. This is a neutral value indicating ATGE is somewhat dependend on debt financing.
ATGE's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. ATGE is outperformed by 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.54 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.9
WACC9.01%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ATGE may have some problems paying its short term obligations.
ATGE has a Current ratio of 0.95. This is in the lower half of the industry: ATGE underperforms 70.31% of its industry peers.
A Quick Ratio of 0.95 indicates that ATGE may have some problems paying its short term obligations.
ATGE's Quick ratio of 0.95 is on the low side compared to the rest of the industry. ATGE is outperformed by 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.13% over the past year.
ATGE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.05% yearly.
ATGE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.83%.
Measured over the past years, ATGE shows a quite strong growth in Revenue. The Revenue has been growing by 8.60% on average per year.
EPS 1Y (TTM)2.13%
EPS 3Y22.33%
EPS 5Y9.05%
EPS growth Q2Q5.13%
Revenue 1Y (TTM)-16.83%
Revenue growth 3Y11.31%
Revenue growth 5Y8.6%
Revenue growth Q2Q-45.16%
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 11.85% on average per year.
ATGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y12.66%
EPS Next 2Y11.85%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.72%
Revenue Next 2Y6.41%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.91, which indicates a correct valuation of ATGE.
Compared to the rest of the industry, the Price/Earnings ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 85.94% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, ATGE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.41, the valuation of ATGE can be described as reasonable.
Based on the Price/Forward Earnings ratio, ATGE is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
ATGE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
79.69% of the companies in the same industry are more expensive than ATGE, based on the Enterprise Value to EBITDA ratio.
ATGE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ATGE is cheaper than 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
ATGE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ATGE may justify a higher PE ratio.
PEG (NY)1.1
PEG (5Y)1.54
EPS Next 2Y11.85%
EPS Next 3YN/A
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 (5/3/2024, 7:04:00 PM)
After market: 60.08 0 (0%)60.08
+7.68 (+14.66%)
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 Cap2.35B
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)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 11.41 | ||
| 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)1.1
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 8.66% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.78% | ||
| PM (TTM) | 7.93% | ||
| GM | 55.19% | ||
| 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 Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| 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)
Growth
EPS 1Y (TTM)2.13%
EPS 3Y22.33%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.83%
Revenue growth 3Y11.31%
Revenue growth 5Y
Revenue growth 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