NYSE:ATGE

Stock Analysis Report

Executive Summary

Adtalem Global Education Inc. provides educational services worldwide.


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Adtalem Global Education's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATGE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

ATGE

-5.4%

US Consumer Services

-2.0%

US Market


1 Year Return

-50.7%

ATGE

-7.2%

US Consumer Services

-15.1%

US Market

Return vs Industry: ATGE underperformed the US Consumer Services industry which returned -6.3% over the past year.

Return vs Market: ATGE underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

ATGEIndustryMarket
7 Day-5.0%-5.4%-2.0%
30 Day-21.1%-21.1%-19.7%
90 Day-31.8%-14.9%-23.2%
1 Year-50.7%-50.7%-7.0%-7.2%-13.4%-15.1%
3 Year-33.7%-33.7%52.9%46.1%10.9%3.7%
5 Year-31.2%-33.2%114.7%90.2%28.4%14.4%

Price Volatility Vs. Market

How volatile is Adtalem Global Education's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Adtalem Global Education undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATGE ($23.57) is trading below our estimate of fair value ($60.23)

Significantly Below Fair Value: ATGE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATGE is good value based on its PE Ratio (11.2x) compared to the Consumer Services industry average (25.2x).

PE vs Market: ATGE is good value based on its PE Ratio (11.2x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ATGE is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ATGE is good value based on its PB Ratio (1x) compared to the US Consumer Services industry average (1.7x).


Next Steps

Future Growth

How is Adtalem Global Education forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATGE's forecast earnings growth (27.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ATGE's earnings (27.1% per year) are forecast to grow faster than the US market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ATGE's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: ATGE's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ATGE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Adtalem Global Education performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATGE has high quality earnings.

Growing Profit Margin: ATGE's current net profit margins (9.2%) are lower than last year (15.8%).


Past Earnings Growth Analysis

Earnings Trend: ATGE's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: ATGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATGE had negative earnings growth (-33.9%) over the past year, making it difficult to compare to the Consumer Services industry average (17.6%).


Return on Equity

High ROE: ATGE's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Adtalem Global Education's financial position?


Financial Position Analysis

Short Term Liabilities: ATGE's short term assets ($389.9M) exceed its short term liabilities ($304.2M).

Long Term Liabilities: ATGE's short term assets ($389.9M) do not cover its long term liabilities ($788.4M).


Debt to Equity History and Analysis

Debt Level: ATGE's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ATGE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ATGE's debt is well covered by operating cash flow (40.5%).

Interest Coverage: ATGE's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

Inventory Level: ATGE has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATGE's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Adtalem Global Education's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ATGE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ATGE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATGE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATGE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ATGE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATGE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Lisa Wardell (50yo)

3.92s

Tenure

US$2,373,194

Compensation

Ms. Lisa W. Wardell A/L Lisa W. Pickrum, Esq., serves as Chairman at Adtalem Global Education Inc. since July 16, 2019. Ms. Wardell has been the Chief Executive Officer and President of Adtalem Global Educ ...


CEO Compensation Analysis

Compensation vs Market: Lisa's total compensation ($USD2.37M) is below average for companies of similar size in the US market ($USD4.70M).

Compensation vs Earnings: Lisa's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Lisa Wardell
Chairman of the Board3.92yrsUS$2.37m0.27% $3.3m
Stephen Beard
Chief Operating Officer1.25yrsUS$1.72m0.0051% $63.5k
Kathy Holland
Group President of Medical & Healthcare Education1.92yrsUS$1.79m0.011% $137.9k
Heidi Chumley
Executive Deanno datano datano data
Sean Callanan
no datano datano data
William Owen
Dean & Chancellor - Ross University School of Medicineno datano datano data
Michael Randolfi
Senior VP0.67yrno data0.15% $1.8m
Christopher Nash
Senior VP & Chief Information Officer6.83yrsno data0.026% $321.9k
John Kristoff
Vice President of Investor Relations1yrno datano data
Chaka Patterson
General Counsel & Corporate Secretary0.17yrno data0.0064% $79.4k

1.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: ATGE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lisa Wardell
Chairman of the Board3.92yrsUS$2.37m0.27% $3.3m
Dennis Keller
Co-Founder and Director Emeritus11.42yrsUS$502.18kno data
Charles Bowsher
Director Emeritusno dataUS$108.37kno data
William Burke
Lead Independent Director0.75yrUS$252.47k0.0081% $101.6k
Michael Malafronte
Independent Director3.83yrsno datano data
Lyle Logan
Independent Director12.42yrsUS$243.97k0.037% $466.4k
James White
Independent Director4.83yrsUS$339.97k0.011% $136.8k
Donna Hrinak
Independent Director1.5yrsUS$188.72k0.0033% $41.0k
Steven Altschuler
Independent Director1.92yrsUS$209.97k0.0042% $52.5k
Georgette Kiser
Independent Director1.92yrsUS$209.97k0.0042% $52.5k

1.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ATGE's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATGE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Adtalem Global Education Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adtalem Global Education Inc.
  • Ticker: ATGE
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.247b
  • Shares outstanding: 52.91m
  • Website: https://www.adtalem.com

Number of Employees


Location

  • Adtalem Global Education Inc.
  • 500 West Monroe Street
  • Suite 28
  • Chicago
  • Illinois
  • 60661
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATGENYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1991
DVYDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1991
DVYBRSE (Berne Stock Exchange)YesCommon StockCHCHFJun 1991

Biography

Adtalem Global Education Inc. provides educational services worldwide. It operates through three segments: Medical and Healthcare, Professional Education, and Technology and Business. The Medical and Healthcare segment operates Chamberlain University, which provides a pre-licensure bachelor’s degree in nursing at 21 campus locations and post-licensure bachelor’s, master’s, and doctorate degree programs in nursing through its online platform; and operates medical and veterinary schools, including American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine. The Professional Education segment operates an Association of Certified Anti-Money Laundering Specialists, which provides membership services, certified anti-money laundering specialist certification, conferences, risk assessment, training, and publications; and Becker Professional Education that prepares candidates for the Certified Public Accountant, Certified Management Accountant, and U.S. Medical Licensing Examination certification examinations, as well as professional education programs and seminars in accounting and finance. This segment also offers professional education in the areas of finance, accounting, analytics, marketing, and healthcare. The Technology and Business segment operates approximately 13 institutions, which offers undergraduate and graduate programs in the areas of engineering, healthcare, law, management, medical, and technology; and provides legal bar exam review courses. The company was formerly known as DeVry Education Group Inc. and changed its name to Adtalem Global Education Inc. in May 2017. Adtalem Global Education Inc. was incorporated in 1987 and is based in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 02:25
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.