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ATGE

Adtalem Global Education NYSE:ATGE Stock Report

Last Price

US$36.52

Market Cap

US$1.6b

7D

-0.3%

1Y

-7.8%

Updated

01 Jul, 2022

Data

Company Financials +
ATGE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health2/6
Dividends0/6

ATGE Stock Overview

Adtalem Global Education Inc. provides workforce solutions worldwide.

Adtalem Global Education Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Adtalem Global Education
Historical stock prices
Current Share PriceUS$36.52
52 Week HighUS$40.23
52 Week LowUS$19.14
Beta1.13
1 Month Change10.33%
3 Month Change17.81%
1 Year Change-7.80%
3 Year Change-19.81%
5 Year Change0.33%
Change since IPO2,896.51%

Recent News & Updates

Jun 29
These 4 Measures Indicate That Adtalem Global Education (NYSE:ATGE) Is Using Debt Extensively

These 4 Measures Indicate That Adtalem Global Education (NYSE:ATGE) Is Using Debt Extensively

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

ATGEUS Consumer ServicesUS Market
7D-0.3%-1.3%-2.5%
1Y-7.8%-47.3%-21.2%

Return vs Industry: ATGE exceeded the US Consumer Services industry which returned -48.7% over the past year.

Return vs Market: ATGE exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is ATGE's price volatile compared to industry and market?
ATGE volatility
ATGE Average Weekly Movement5.5%
Consumer Services Industry Average Movement9.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: ATGE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ATGE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19874,426Steve Beardhttps://www.adtalem.com

Adtalem Global Education Inc. provides workforce solutions worldwide. It operates through two segments, Medical and Healthcare; and Financial Services. The Medical and Healthcare segment offers degree and non-degree programs in the medical and healthcare postsecondary education industry.

Adtalem Global Education Fundamentals Summary

How do Adtalem Global Education's earnings and revenue compare to its market cap?
ATGE fundamental statistics
Market CapUS$1.65b
Earnings (TTM)US$1.62m
Revenue (TTM)US$1.45b

1,017x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATGE income statement (TTM)
RevenueUS$1.45b
Cost of RevenueUS$646.23m
Gross ProfitUS$808.60m
Other ExpensesUS$806.98m
EarningsUS$1.62m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.036
Gross Margin55.58%
Net Profit Margin0.11%
Debt/Equity Ratio85.2%

How did ATGE perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ATGE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ATGE?

Other financial metrics that can be useful for relative valuation.

ATGE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA7.7x
PEG Ratio4.2x

Price to Sales Ratio vs Peers

How does ATGE's PS Ratio compare to its peers?

ATGE PS Ratio vs Peers
The above table shows the PS ratio for ATGE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average121.8x
STRA Strategic Education
1.6x1.8%US$1.7b
UDMY Udemy
2.6x17.6%US$1.4b
LRN Stride
1.1x5.6%US$1.7b
NAAS NaaS Technology
482xn/aUS$1.3b
ATGE Adtalem Global Education
1.1x3.9%US$1.6b

Price-To-Sales vs Peers: ATGE is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (121.8x).


Price to Earnings Ratio vs Industry

How does ATGE's PE Ratio compare vs other companies in the US Consumer Services Industry?

Price-To-Sales vs Industry: ATGE is good value based on its Price-To-Sales Ratio (1.1x) compared to the US Consumer Services industry average (1.4x)


Price to Sales Ratio vs Fair Ratio

What is ATGE's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ATGE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: ATGE is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).


Share Price vs Fair Value

What is the Fair Price of ATGE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATGE ($36.52) is trading below our estimate of fair value ($161.4)

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


Price to Earnings Growth Ratio

PEG Ratio: ATGE is poor value based on its PEG Ratio (4.2x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


241.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATGE's forecast earnings growth (241.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ATGE's earnings (241.7% per year) are forecast to grow faster than the US market (13.6% per year).

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

Revenue vs Market: ATGE's revenue (3.9% per year) is forecast to grow slower than the US market (8.2% per year).

High Growth Revenue: ATGE's revenue (3.9% per year) is forecast to grow slower than 20% 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


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Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


1.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ATGE has a large one-off loss of $72.7M impacting its March 31 2022 financial results.

Growing Profit Margin: ATGE's current net profit margins (0.1%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: ATGE's earnings have grown by 1.1% 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 (-98.8%) over the past year, making it difficult to compare to the Consumer Services industry average (-10.4%).


Return on Equity

High ROE: ATGE's Return on Equity (0.1%) is considered low.


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Financial Health

How is Adtalem Global Education's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ATGE's short term assets ($1.0B) exceed its short term liabilities ($521.2M).

Long Term Liabilities: ATGE's short term assets ($1.0B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: ATGE's net debt to equity ratio (32.3%) is considered satisfactory.

Reducing Debt: ATGE's debt to equity ratio has increased from 7.2% to 85.2% over the past 5 years.

Debt Coverage: ATGE's debt is not well covered by operating cash flow (7.8%).

Interest Coverage: ATGE's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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 recent payouts.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ATGE has not reported any payouts.


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Management

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

0.8yrs

Average management tenure


CEO

Steve Beard (51 yo)

0.75

Tenure

US$2,801,880

Compensation

Mr. Stephen W. Beard, also known as Steve, served as Chief Operating Officer at Adtalem Global Education Inc. since January 09, 2019 until 2021 and served as its Head of Financial Services since February 2...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD2.80M) is below average for companies of similar size in the US market ($USD5.57M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: ATGE's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ATGE's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ATGE insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: US$1.649b
  • Shares outstanding: 45.14m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.