NYSE:ATGE

Stock Analysis Report

Executive Summary

Adtalem Global Education Inc. provides educational services worldwide.

Snowflake

Fundamentals

Undervalued with proven track record.


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


Market Performance


7 Day Return

2.3%

ATGE

1.8%

US Consumer Services

2.3%

US Market


1 Year Return

-24.9%

ATGE

24.0%

US Consumer Services

5.6%

US Market

Return vs Industry: ATGE underperformed the US Consumer Services industry which returned 24% over the past year.

Return vs Market: ATGE underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

ATGEIndustryMarket
7 Day2.3%1.8%2.3%
30 Day-12.0%-0.6%-1.0%
90 Day-22.8%-0.6%-0.7%
1 Year-24.9%-24.9%24.5%24.0%7.9%5.6%
3 Year61.8%60.8%104.5%93.6%45.6%36.3%
5 Year-17.0%-19.7%146.3%120.6%65.8%47.6%

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?

49.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ATGE ($36.5) is trading below our estimate of fair value ($72.75)

Significantly Undervalued: 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 (15.8x) compared to the Consumer Services industry average (26x).

PE vs Market: ATGE is good value based on its PE Ratio (15.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ATGE is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ATGE is good value based on its PB Ratio (1.5x) compared to the US Consumer Services industry average (2.1x).


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?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATGE's forecast earnings growth (14.7% per year) is above the savings rate (2.7%).

Earnings vs Market: ATGE's earnings (14.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: ATGE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATGE's revenue (5.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ATGE's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ATGE's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

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

-0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ATGE's earnings have declined by -0.6% per year over the past 5 years.

Accelerating Growth: ATGE's earnings growth over the past year (19%) exceeds its 5-year average (-0.6% per year).

Earnings vs Industry: ATGE earnings growth over the past year (19%) exceeded the Consumer Services industry 5.5%.


Return on Equity

High ROE: ATGE's Return on Equity (9.7%) is considered low.


Return on Assets

ROA vs Industry: ATGE has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: ATGE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Adtalem Global Education's financial position?


Financial Position Analysis

Short Term Liabilities: ATGE's short term assets ($504.7M) exceeds its short term liabilities ($311.6M)

Long Term Liabilities: ATGE's short term assets (504.7M) do not cover its long term liabilities (530.0M)


Debt to Equity History and Analysis

Debt Level: ATGE's debt to equity ratio (28.6%) 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 (51.1%).

Interest Coverage: ATGE's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet

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

Debt Coverage by Assets: ATGE's debt is covered by short term assets (assets are 1.258300x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Adtalem Global Education's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Lisa Wardell (50yo)

3.4yrs

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 ($USD2.37M) is below average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

1.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: ATGE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: ATGE's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$104,27226 Aug 19
Patrick Unzicker
EntityIndividual
Shares2,297
Max PriceUS$45.40
SellUS$143,95219 Feb 19
James White
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,936
Max PriceUS$49.03
SellUS$154,54514 Feb 19
Carlos Filgueiras
EntityIndividual
Shares3,205
Max PriceUS$48.22
SellUS$36,52213 Nov 18
Mehul Patel
EntityIndividual
Role
Senior Key Executive
Group President of Financial Services
Shares631
Max PriceUS$57.88
SellUS$371,02009 Nov 18
Carlos Filgueiras
EntityIndividual
Shares6,500
Max PriceUS$57.08
SellUS$239,62106 Nov 18
Donna Jennings-Howell
EntityIndividual
Shares4,302
Max PriceUS$55.70

Ownership Breakdown


Management Team

  • John Kristoff (51yo)

    Vice President of Investor Relations

    • Tenure: 0.5yrs
  • Steve Beard (48yo)

    COO, General Counsel & Corporate Secretary

    • Tenure: 0.8yrs
    • Compensation: US$1.72m
  • Lisa Wardell (50yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$2.37m
  • Bill Owen (63yo)

    Dean & Chancellor - Ross University School of Medicine

    • Tenure: 0yrs
  • Kathy Holland (53yo)

    Group President of Medical & Healthcare Education

    • Tenure: 1.4yrs
    • Compensation: US$1.79m
  • Mehul Patel (45yo)

    Group President of Financial Services

    • Tenure: 2.1yrs
    • Compensation: US$1.43m
  • Mike Randolfi (46yo)

    Senior VP

    • Tenure: 0.2yrs
  • Chris Nash (52yo)

    Senior VP & Chief Information Officer

    • Tenure: 6.3yrs
  • Sean Callanan

    • Tenure: 0yrs
  • Heidi Chumley

    Executive Dean

    • Tenure: 0yrs

Board Members

  • Dennis Keller (78yo)

    Co-Founder and Director Emeritus

    • Tenure: 10.9yrs
    • Compensation: US$502.18k
  • Chuck Bowsher (87yo)

    Director Emeritus

    • Tenure: 0yrs
    • Compensation: US$108.37k
  • Bill Burke (60yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$252.47k
  • Michael Malafronte (44yo)

    Independent Director

    • Tenure: 3.3yrs
  • Lyle Logan (59yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$243.97k
  • James White (58yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$339.97k
  • Donna Hrinak (68yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$188.72k
  • Lisa Wardell (50yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$2.37m
  • Steve Altschuler (66yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$209.97k
  • Georgette Kiser (51yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$209.97k

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$2.010b
  • Shares outstanding: 55.07m
  • Website: https://www.adtalem.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATGENYSE (New York Stock Exchange)YesCommon StockUSUSDJun 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 Healt ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:36
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.