ADTALEM GLOBAL EDUCATION INC (ATGE) Stock Fundamental Analysis
NYSE:ATGE - New York Stock Exchange, Inc. - US00737L1035 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ATGE. ATGE was compared to 70 industry peers in the Diversified Consumer Services industry. ATGE has an excellent profitability rating, but there are some minor concerns on its financial health. ATGE has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! This makes ATGE very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
ATGE had positive earnings in the past year.
ATGE had a positive operating cash flow in the past year.
Of the past 5 years ATGE 4 years were 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 8.33%, ATGE is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
ATGE's Return On Equity of 16.21% is fine compared to the rest of the industry. ATGE outperforms 80.00% of its industry peers.
ATGE has a better Return On Invested Capital (13.23%) than 90.00% of its industry peers.
ATGE had an Average Return On Invested Capital over the past 3 years of 7.66%. This is below the industry average of 10.94%.
The last Return On Invested Capital (13.23%) for ATGE is above the 3 year average (7.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 16.21% | ||
| ROIC | 13.23% |
ROA(3y)6.19%
ROA(5y)3.41%
ROE(3y)12.42%
ROE(5y)7.22%
ROIC(3y)7.66%
ROIC(5y)7.12%
1.3 Margins
Looking at the Profit Margin, with a value of 13.34%, ATGE belongs to the top of the industry, outperforming 87.14% of the companies in the same industry.
ATGE's Profit Margin has declined in the last couple of years.
ATGE has a better Operating Margin (19.55%) than 84.29% of its industry peers.
ATGE's Operating Margin has declined in the last couple of years.
ATGE has a better Gross Margin (56.63%) than 72.86% 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 | 19.55% | ||
| PM (TTM) | 13.34% | ||
| GM | 56.63% |
OM growth 3Y-1.18%
OM growth 5Y-2.38%
PM growth 3Y3.49%
PM growth 5Y-1.67%
GM growth 3Y4.44%
GM growth 5Y0.9%
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.
Compared to 1 year ago, ATGE has less shares outstanding
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 4.31 indicates that ATGE is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.31, ATGE belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
ATGE has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.90, ATGE belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that ATGE is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, ATGE perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.9 | ||
| Altman-Z | 4.31 |
ROIC/WACC1.49
WACC8.85%
2.3 Liquidity
A Current Ratio of 0.83 indicates that ATGE may have some problems paying its short term obligations.
The Current ratio of ATGE (0.83) is worse than 62.86% of its industry peers.
A Quick Ratio of 0.83 indicates that ATGE may have some problems paying its short term obligations.
With a Quick ratio value of 0.83, ATGE is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.25% over the past year.
Measured over the past years, ATGE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.11% on average per year.
The Revenue has grown by 13.10% in the past year. This is quite good.
Measured over the past years, ATGE shows a quite strong growth in Revenue. The Revenue has been growing by 9.34% on average per year.
EPS 1Y (TTM)36.25%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%28%
Revenue 1Y (TTM)13.1%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%12.94%
3.2 Future
ATGE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.13% yearly.
The Revenue is expected to grow by 8.09% on average over the next years. This is quite good.
EPS Next Y29.48%
EPS Next 2Y22.27%
EPS Next 3Y20.13%
EPS Next 5YN/A
Revenue Next Year12.27%
Revenue Next 2Y9.46%
Revenue Next 3Y8.09%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.30, the valuation of ATGE can be described as rather expensive.
72.86% of the companies in the same industry are more expensive than ATGE, based on the Price/Earnings ratio.
ATGE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.40, the valuation of ATGE can be described as correct.
Based on the Price/Forward Earnings ratio, ATGE is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
ATGE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
ATGE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ATGE is cheaper than 62.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ATGE is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 12.09 |
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 a very decent 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 20.13% in the coming years.
PEG (NY)0.65
PEG (5Y)1.59
EPS Next 2Y22.27%
EPS Next 3Y20.13%
5. Dividend
5.1 Amount
ATGE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
123.31
+1.47 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.86%
Inst Owner Change1.42%
Ins Owners1.35%
Ins Owner Change-0.97%
Market Cap4.43B
Analysts88
Price Target144.07 (16.84%)
Short Float %2.98%
Short Ratio1.84
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)21.72%
Min EPS beat(2)13.91%
Max EPS beat(2)29.53%
EPS beat(4)4
Avg EPS beat(4)14.95%
Min EPS beat(4)4.93%
Max EPS beat(4)29.53%
EPS beat(8)8
Avg EPS beat(8)15.91%
EPS beat(12)12
Avg EPS beat(12)16.29%
EPS beat(16)13
Avg EPS beat(16)9.76%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)2.26%
Max Revenue beat(2)2.26%
Revenue beat(4)4
Avg Revenue beat(4)2.06%
Min Revenue beat(4)0.81%
Max Revenue beat(4)2.9%
Revenue beat(8)8
Avg Revenue beat(8)2.04%
Revenue beat(12)11
Avg Revenue beat(12)9.69%
Revenue beat(16)11
Avg Revenue beat(16)3.84%
PT rev (1m)14.37%
PT rev (3m)18.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)0%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 16.4 | ||
| P/S | 2.54 | ||
| P/FCF | 15.25 | ||
| P/OCF | 13.9 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.09 |
EPS(TTM)6.39
EY5.18%
EPS(NY)7.52
Fwd EY6.1%
FCF(TTM)8.09
FCFY6.56%
OCF(TTM)8.87
OCFY7.2%
SpS48.46
BVpS39.88
TBVpS-8.26
PEG (NY)0.65
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 16.21% | ||
| ROCE | 15.13% | ||
| ROIC | 13.23% | ||
| ROICexc | 14.65% | ||
| ROICexgc | 98.95% | ||
| OM | 19.55% | ||
| PM (TTM) | 13.34% | ||
| GM | 56.63% | ||
| FCFM | 16.69% |
ROA(3y)6.19%
ROA(5y)3.41%
ROE(3y)12.42%
ROE(5y)7.22%
ROIC(3y)7.66%
ROIC(5y)7.12%
ROICexc(3y)8.63%
ROICexc(5y)8.5%
ROICexgc(3y)54.53%
ROICexgc(5y)42.18%
ROCE(3y)8.76%
ROCE(5y)8.15%
ROICexcg growth 3Y89.57%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y21.59%
ROICexc growth 5Y2.02%
OM growth 3Y-1.18%
OM growth 5Y-2.38%
PM growth 3Y3.49%
PM growth 5Y-1.67%
GM growth 3Y4.44%
GM growth 5Y0.9%
F-Score9
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 1.9 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | 52.64% | ||
| Cap/Sales | 1.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.93% | ||
| Profit Quality | 125.1% | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 4.31 |
F-Score9
WACC8.85%
ROIC/WACC1.49
Cap/Depr(3y)40.93%
Cap/Depr(5y)64.07%
Cap/Sales(3y)2.63%
Cap/Sales(5y)3.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.25%
EPS 3Y19.2%
EPS 5Y12.11%
EPS Q2Q%28%
EPS Next Y29.48%
EPS Next 2Y22.27%
EPS Next 3Y20.13%
EPS Next 5YN/A
Revenue 1Y (TTM)13.1%
Revenue growth 3Y20.79%
Revenue growth 5Y9.34%
Sales Q2Q%12.94%
Revenue Next Year12.27%
Revenue Next 2Y9.46%
Revenue Next 3Y8.09%
Revenue Next 5YN/A
EBIT growth 1Y49.26%
EBIT growth 3Y19.36%
EBIT growth 5Y6.74%
EBIT Next Year49.24%
EBIT Next 3Y20.59%
EBIT Next 5YN/A
FCF growth 1Y260.95%
FCF growth 3Y19.81%
FCF growth 5Y12%
OCF growth 1Y194.19%
OCF growth 3Y15.45%
OCF growth 5Y7.62%