ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
USA - NYSE:ATGE - US00737L1035 - Common Stock
94.89 USD
-0.25 (-0.26%)
96.78 USD
+1.89 (+1.99%)
Taking everything into account, ATGE scores 7 out of 10 in our fundamental rating. ATGE was compared to 78 industry peers in the Diversified Consumer Services industry. ATGE has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ATGE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, ATGE could be worth investigating further 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.
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
ATGE has a better Return On Assets (8.61%) than 80.77% of its industry peers.
With an excellent Return On Equity value of 16.54%, ATGE belongs to the best of the industry, outperforming 82.05% 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 87.18% 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 9.50%.
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
With an excellent Profit Margin value of 13.26%, ATGE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Profit Margin of ATGE has declined.
ATGE's Operating Margin of 19.28% is amongst the best of the industry. ATGE outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of ATGE has grown nicely.
The Gross Margin of ATGE (56.86%) is better than 70.51% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ATGE is still creating some value.
The number of shares outstanding for ATGE has been reduced compared to 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
An Altman-Z score of 4.01 indicates that ATGE is not in any danger for bankruptcy at the moment.
ATGE has a Altman-Z score of 4.01. This is amongst the best in the industry. ATGE outperforms 87.18% 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.
With a decent Debt to FCF ratio value of 1.92, ATGE is doing good in the industry, outperforming 79.49% 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 | 1.92 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.48
WACC8.38%
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 66.67% of its industry peers.
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.
ATGE has a Quick ratio of 0.82. This is in the lower half of the industry: ATGE underperforms 64.10% of its industry peers.
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 | 0.82 | ||
| 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 32.47%, 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.
The Revenue has grown by 12.85% in the past year. This is quite good.
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)12.85%
Revenue growth 3Y8.97%
Revenue growth 5Y11.19%
Sales Q2Q%10.75%
3.2 Future
ATGE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.79% yearly.
Based on estimates for the next years, ATGE will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y18.87%
EPS Next 2Y15.79%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.29 indicates a correct valuation of ATGE.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than 78.21% of the companies in the same industry.
ATGE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
With a Price/Forward Earnings ratio of 10.60, the valuation of ATGE can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 85.90% of the companies listed in the same industry.
ATGE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ATGE is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ATGE indicates a rather cheap valuation: ATGE is cheaper than 82.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
ATGE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ATGE has an outstanding profitability rating, which may justify a higher PE ratio.
ATGE's earnings are expected to grow with 15.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)0.56
EPS Next 2Y15.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ATGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
94.89
-0.25 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change1.66%
Ins Owners1.36%
Ins Owner Change6.37%
Market Cap3.45B
Revenue(TTM)1.79B
Net Income(TTM)237.06M
Analysts88
Price Target174.93 (84.35%)
Short Float %2.54%
Short Ratio2.68
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)12.64%
PT rev (3m)19.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.87%
EPS NY rev (1m)0%
EPS NY rev (3m)4.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.29 | ||
| Fwd PE | 10.6 | ||
| P/S | 1.93 | ||
| P/FCF | 11.99 | ||
| P/OCF | 10.2 | ||
| P/B | 2.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.6 |
EPS(TTM)7.14
EY7.52%
EPS(NY)8.96
Fwd EY9.44%
FCF(TTM)7.92
FCFY8.34%
OCF(TTM)9.3
OCFY9.8%
SpS49.22
BVpS39.46
TBVpS-8.07
PEG (NY)0.7
PEG (5Y)0.56
Graham Number79.62
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%
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-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 | 4.01 |
F-Score8
WACC8.38%
ROIC/WACC1.48
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 Y18.87%
EPS Next 2Y15.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.85%
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 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%
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%.