ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ATGE - US00737L1035 - Common Stock
100.34 USD
-0.26 (-0.26%)
We assign a fundamental rating of 7 out of 10 to ATGE. ATGE was compared to 77 industry peers in the Diversified Consumer Services industry. ATGE gets an excellent profitability rating and is at the same time showing great financial health properties. ATGE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ATGE very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
ATGE had positive earnings in the past year.
In the past year ATGE had a positive cash flow from operations.
Each year in the past 5 years ATGE has been profitable.
In the past 5 years ATGE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.81%, ATGE is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
ATGE has a better Return On Equity (17.34%) than 77.92% of its industry peers.
ATGE has a Return On Invested Capital of 12.67%. This is amongst the best in the industry. ATGE outperforms 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ATGE is in line with the industry average of 10.17%.
The 3 year average ROIC (9.63%) for ATGE is below the current ROIC(12.67%), indicating increased profibility in the last year.
| 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 better Profit Margin (13.79%) than 83.12% of its industry peers.
ATGE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.55%, ATGE belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
ATGE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 57.11%, ATGE is doing good in the industry, outperforming 71.43% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATGE is still 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
ATGE has an Altman-Z score of 3.99. 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 3.99, ATGE belongs to the top of the industry, outperforming 84.42% of the companies in the same industry.
ATGE has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
The Debt to FCF ratio of ATGE (1.71) is better 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.
ATGE has a Debt to Equity ratio (0.38) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 3.99 |
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.
Looking at the Current ratio, with a value of 0.98, ATGE is in line with its industry, outperforming 41.56% of the companies in the same industry.
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.
ATGE has a Quick ratio (0.98) which is comparable to the rest of the 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
ATGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.47%, which is quite impressive.
ATGE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.77% yearly.
Looking at the last year, ATGE shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
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
The Earnings Per Share is expected to grow by 15.89% on average over the next years. This is quite good.
ATGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y18.91%
EPS Next 2Y15.89%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 14.05, 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 72.73% of the companies in the same industry.
ATGE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.19 indicates a reasonable valuation of ATGE.
Based on the Price/Forward Earnings ratio, ATGE is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
ATGE is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than 67.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATGE is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.28 | ||
| EV/EBITDA | 9.6 |
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 excellent 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 15.89% in the coming years.
PEG (NY)0.74
PEG (5Y)0.59
EPS Next 2Y15.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ATGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:ATGE (12/22/2025, 10:18:08 AM)
100.34
-0.26 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.02%
Inst Owner Change1.49%
Ins Owners1.39%
Ins Owner Change7.49%
Market Cap3.65B
Revenue(TTM)1.83B
Net Income(TTM)252.73M
Analysts88
Price Target169.83 (69.25%)
Short Float %2.89%
Short Ratio1.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-2.92%
PT rev (3m)9.36%
EPS NQ rev (1m)-1.25%
EPS NQ rev (3m)-4.19%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 11.19 | ||
| P/S | 1.99 | ||
| P/FCF | 11.28 | ||
| P/OCF | 9.61 | ||
| P/B | 2.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)7.14
EY7.12%
EPS(NY)8.97
Fwd EY8.94%
FCF(TTM)8.9
FCFY8.87%
OCF(TTM)10.44
OCFY10.4%
SpS50.46
BVpS40.12
TBVpS-7.33
PEG (NY)0.74
PEG (5Y)0.59
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 | 3.99 |
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 Y18.91%
EPS Next 2Y15.89%
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 Year36.74%
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%.