ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
NYSE:ATGE - US00737L1035 - Common Stock
134.88 USD
+1.99 (+1.5%)
134.88 USD
0 (0%)
Overall ATGE gets a fundamental rating of 6 out of 10. We evaluated ATGE against 71 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 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.
In the past 5 years ATGE has always been profitable.
Each year in the past 5 years ATGE had a positive operating cash flow.
1.2 Ratios
ATGE has a Return On Assets of 8.61%. This is in the better half of the industry: ATGE outperforms 77.46% of its industry peers.
Looking at the Return On Equity, with a value of 16.54%, ATGE belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.44%, ATGE belongs to the best of the industry, outperforming 88.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ATGE is in line with the industry average of 10.23%.
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
Looking at the Profit Margin, with a value of 13.26%, ATGE belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
ATGE's Profit Margin has declined in the last couple of years.
The Operating Margin of ATGE (19.28%) is better than 84.51% of its industry peers.
In the last couple of years the Operating Margin of ATGE has grown nicely.
With a decent Gross Margin value of 56.86%, ATGE is doing good in the industry, outperforming 73.24% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ATGE is creating some value.
ATGE has less shares outstanding than it did 1 year ago.
ATGE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ATGE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.64 indicates that ATGE is not in any danger for bankruptcy at the moment.
The Altman-Z score of ATGE (4.64) is better than 84.51% 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.
ATGE has a better Debt to FCF ratio (1.92) than 80.28% of its industry peers.
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 | 4.64 |
ROIC/WACC1.36
WACC9.14%
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.
Looking at the Current ratio, with a value of 0.82, ATGE is doing worse than 64.79% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that ATGE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, ATGE is doing worse than 64.79% of the companies in the same industry.
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
The Earnings Per Share has grown by an impressive 32.80% over the past year.
The Earnings Per Share has been growing by 23.77% on average over the past years. This is a very strong growth
ATGE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.85%.
Measured over the past years, ATGE shows a quite strong growth in Revenue. The Revenue has been growing by 11.19% on average per year.
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 16.84% on average per year.
The Revenue is expected to grow by 7.44% on average over the next years.
EPS Next Y15.9%
EPS Next 2Y16.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.02%
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
With a Price/Earnings ratio of 20.19, ATGE is valued on the expensive side.
Based on the Price/Earnings ratio, ATGE is valued a bit cheaper than 69.01% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, ATGE is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.42, ATGE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, ATGE is valued a bit cheaper than the industry average as 71.83% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ATGE to the average of the S&P500 Index (22.81), we can say ATGE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
ATGE's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ATGE is valued a bit cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.87 | ||
| EV/EBITDA | 13.11 |
4.3 Compensation for Growth
ATGE's 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.
ATGE's earnings are expected to grow with 16.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)0.85
EPS Next 2Y16.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ATGE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
134.88
+1.99 (+1.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners105.06%
Inst Owner Change-4.01%
Ins Owners1.34%
Ins Owner Change-0.38%
Market Cap4.85B
Analysts88
Price Target155.29 (15.13%)
Short Float %2.81%
Short Ratio2.3
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)23.28%
EPS NQ rev (1m)4.47%
EPS NQ rev (3m)5.9%
EPS NY rev (1m)1.71%
EPS NY rev (3m)2.95%
Revenue NQ rev (1m)2.03%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)1.56%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 17.42 | ||
| P/S | 2.71 | ||
| P/FCF | 16.87 | ||
| P/OCF | 14.35 | ||
| P/B | 3.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.11 |
EPS(TTM)6.68
EY4.95%
EPS(NY)7.74
Fwd EY5.74%
FCF(TTM)8
FCFY5.93%
OCF(TTM)9.4
OCFY6.97%
SpS49.73
BVpS39.87
TBVpS-8.15
PEG (NY)1.27
PEG (5Y)0.85
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 | 4.64 |
F-Score8
WACC9.14%
ROIC/WACC1.36
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 Year8.02%
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%