ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - NYSE:ATGE - US00737L1035 - Common Stock
137.31 USD
-1.29 (-0.93%)
137.31 USD
0 (0%)
Overall ATGE gets a fundamental rating of 6 out of 10. We evaluated ATGE against 74 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making ATGE a very profitable company, without any liquidiy or solvency issues. ATGE is not valued too expensively and it also shows a decent growth rate. With these ratings, ATGE could be worth investigating further for 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.
In the past 5 years ATGE has always been profitable.
In the past 5 years ATGE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ATGE (8.61%) is better than 79.73% of its industry peers.
ATGE has a Return On Equity of 16.54%. This is amongst the best in the industry. ATGE outperforms 81.08% of its industry peers.
The Return On Invested Capital of ATGE (12.44%) is better than 87.84% 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 9.88%.
The last Return On Invested Capital (12.44%) for ATGE is above the 3 year average (9.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.54% | ||
| ROIC | 12.44% |
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 (13.26%) than 82.43% of its industry peers.
ATGE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 19.28%, ATGE belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
In the last couple of years the Operating Margin of ATGE has grown nicely.
ATGE's Gross Margin of 56.86% is fine compared to the rest of the industry. ATGE outperforms 70.27% 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 | 19.28% | ||
| PM (TTM) | 13.26% | ||
| GM | 56.86% |
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
ATGE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, ATGE has less shares outstanding
ATGE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ATGE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.68 indicates that ATGE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATGE (4.68) is better than 85.14% of its industry peers.
The Debt to FCF ratio of ATGE is 1.92, which is an excellent value as it means it would take ATGE, only 1.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, ATGE belongs to the top of the industry, outperforming 81.08% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that ATGE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, ATGE is in line with its industry, outperforming 47.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 4.68 |
ROIC/WACC1.43
WACC8.72%
2.3 Liquidity
ATGE has a Current Ratio of 0.82. 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 Current ratio of 0.82. This is in the lower half of the industry: ATGE underperforms 66.22% of its industry peers.
A Quick Ratio of 0.82 indicates that ATGE may have some problems paying its short term obligations.
The Quick ratio of ATGE (0.82) is worse than 66.22% of its industry peers.
The current and quick ratio evaluation for ATGE is rather negative, while it does have 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 | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
ATGE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.80%, which is quite impressive.
Measured over the past years, ATGE shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.77% on average per year.
Looking at the last year, ATGE shows a quite strong growth in Revenue. The Revenue has grown by 12.85% 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)32.8%
EPS 3Y23.46%
EPS 5Y23.77%
EPS Q2Q%21.17%
Revenue 1Y (TTM)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%11.51%
3.2 Future
The Earnings Per Share is expected to grow by 16.84% on average over the next years. This is quite good.
Based on estimates for the next years, ATGE will show a small growth in Revenue. The Revenue will grow by 7.44% on average per year.
EPS Next Y15.9%
EPS Next 2Y16.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.57%
Revenue Next 2Y7.44%
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
The Price/Earnings ratio is 20.56, 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 70.27% of the companies listed in the same industry.
ATGE is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 17.74, which indicates a rather expensive current valuation of ATGE.
Based on the Price/Forward Earnings ratio, ATGE is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, ATGE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 17.74 |
4.2 Price Multiples
ATGE's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ATGE is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.17 | ||
| EV/EBITDA | 13.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ATGE has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ATGE's earnings are expected to grow with 16.84% in the coming years.
PEG (NY)1.29
PEG (5Y)0.86
EPS Next 2Y16.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
137.31
-1.29 (-0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners105.06%
Inst Owner Change-4.02%
Ins Owners1.34%
Ins Owner Change6.41%
Market Cap4.94B
Analysts88
Price Target155.29 (13.09%)
Short Float %2.26%
Short Ratio1.86
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)10.05%
Min EPS beat(2)6.2%
Max EPS beat(2)13.91%
EPS beat(4)4
Avg EPS beat(4)15.26%
Min EPS beat(4)6.2%
Max EPS beat(4)29.53%
EPS beat(8)8
Avg EPS beat(8)16.22%
EPS beat(12)12
Avg EPS beat(12)16.6%
EPS beat(16)14
Avg EPS beat(16)10.27%
Revenue beat(2)2
Avg Revenue beat(2)1.96%
Min Revenue beat(2)1.65%
Max Revenue beat(2)2.26%
Revenue beat(4)4
Avg Revenue beat(4)2.27%
Min Revenue beat(4)1.65%
Max Revenue beat(4)2.9%
Revenue beat(8)8
Avg Revenue beat(8)2.22%
Revenue beat(12)11
Avg Revenue beat(12)9.7%
Revenue beat(16)12
Avg Revenue beat(16)5.36%
PT rev (1m)6.28%
PT rev (3m)7.79%
EPS NQ rev (1m)2.77%
EPS NQ rev (3m)6.95%
EPS NY rev (1m)1.71%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)2.08%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.56 | ||
| Fwd PE | 17.74 | ||
| P/S | 2.76 | ||
| P/FCF | 17.17 | ||
| P/OCF | 14.61 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.33 |
EPS(TTM)6.68
EY4.86%
EPS(NY)7.74
Fwd EY5.64%
FCF(TTM)8
FCFY5.82%
OCF(TTM)9.4
OCFY6.84%
SpS49.73
BVpS39.87
TBVpS-8.15
PEG (NY)1.29
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.61% | ||
| ROE | 16.54% | ||
| ROCE | 15.37% | ||
| ROIC | 12.44% | ||
| ROICexc | 13.66% | ||
| ROICexgc | 87.79% | ||
| OM | 19.28% | ||
| PM (TTM) | 13.26% | ||
| GM | 56.86% | ||
| FCFM | 16.08% |
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%
ROICexcg growth 3Y43.58%
ROICexcg 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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 96.93% | ||
| Cap/Sales | 2.81% | ||
| Interest Coverage | 7.4 | ||
| Cash Conversion | 85.16% | ||
| Profit Quality | 121.31% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 4.68 |
F-Score8
WACC8.72%
ROIC/WACC1.43
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)32.8%
EPS 3Y23.46%
EPS 5Y23.77%
EPS Q2Q%21.17%
EPS Next Y15.9%
EPS Next 2Y16.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%11.51%
Revenue Next Year8.57%
Revenue Next 2Y7.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y36.23%
EBIT growth 3Y30.39%
EBIT growth 5Y15.73%
EBIT Next Year35.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.48%
FCF growth 3YN/A
FCF growth 5Y35.23%
OCF growth 1Y14.24%
OCF growth 3Y217.06%
OCF growth 5Y25.69%