ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - NYSE:ATGE - US00737L1035 - Common Stock
148.49 USD
-1.46 (-0.97%)
148.49 USD
0 (0%)
Overall ATGE gets a fundamental rating of 6 out of 10. We evaluated ATGE against 75 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 has a decent growth rate and is not valued too expensively. 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.
ATGE had positive earnings in each of the past 5 years.
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 8.61%, ATGE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.54%, ATGE belongs to the top of the industry, outperforming 81.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.44%, ATGE belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
ATGE had an Average Return On Invested Capital over the past 3 years of 9.63%. This is in line with the industry average of 9.60%.
The 3 year average ROIC (9.63%) for ATGE is below the current ROIC(12.44%), indicating increased profibility in the last year.
| 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
The Profit Margin of ATGE (13.26%) is better than 84.00% of its industry peers.
ATGE's Profit Margin has declined in the last couple of years.
ATGE has a better Operating Margin (19.28%) than 82.67% of its industry peers.
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 69.33% of its industry peers.
ATGE's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ATGE has been reduced compared to 1 year ago.
ATGE has less shares outstanding than it did 5 years ago.
ATGE has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.87 indicates that ATGE is not in any danger for bankruptcy at the moment.
ATGE has a better Altman-Z score (4.87) than 88.00% 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.
The Debt to FCF ratio of ATGE (1.92) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that ATGE is not too dependend on debt financing.
ATGE has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: ATGE outperforms 48.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 4.87 |
ROIC/WACC1.46
WACC8.52%
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.
With a Current ratio value of 0.82, ATGE is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
ATGE has a Quick 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.
With a Quick ratio value of 0.82, ATGE is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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.
The Revenue has been growing by 11.19% on average over the past years. This is quite good.
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
Based on estimates for the next years, ATGE will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
ATGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.44% yearly.
EPS Next Y18.87%
EPS Next 2Y15.84%
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
ATGE is valuated rather expensively with a Price/Earnings ratio of 22.23.
Compared to the rest of the industry, the Price/Earnings ratio of ATGE indicates a somewhat cheap valuation: ATGE is cheaper than 69.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. ATGE is valued slightly cheaper when compared to this.
ATGE is valuated rather expensively with a Price/Forward Earnings ratio of 18.70.
66.67% of the companies in the same industry are more expensive than ATGE, based on the Price/Forward Earnings ratio.
ATGE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 18.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ATGE is on the same level as its industry peers.
77.33% of the companies in the same industry are more expensive than ATGE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.57 | ||
| EV/EBITDA | 14.35 |
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 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 15.84% in the coming years.
PEG (NY)1.18
PEG (5Y)0.94
EPS Next 2Y15.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ATGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
148.49
-1.46 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change0%
Ins Owners1.36%
Ins Owner Change6.41%
Market Cap5.34B
Analysts88
Price Target155.29 (4.58%)
Short Float %2.58%
Short Ratio2.29
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)0%
PT rev (3m)7.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.87%
EPS NY rev (1m)2.57%
EPS NY rev (3m)4.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 18.7 | ||
| P/S | 2.99 | ||
| P/FCF | 18.57 | ||
| P/OCF | 15.8 | ||
| P/B | 3.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.35 |
EPS(TTM)6.68
EY4.5%
EPS(NY)7.94
Fwd EY5.35%
FCF(TTM)8
FCFY5.39%
OCF(TTM)9.4
OCFY6.33%
SpS49.73
BVpS39.87
TBVpS-8.15
PEG (NY)1.18
PEG (5Y)0.94
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 | 4.87 |
F-Score8
WACC8.52%
ROIC/WACC1.46
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 Y18.87%
EPS Next 2Y15.84%
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 Year38.75%
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%