NYSE:ATGE

Stock Analysis Report

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Market Cap

US$1.7b

Last Updated

2021/07/28 02:10 UTC

Data Sources

Company Financials +

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ATGE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.2%

ATGE

-17.3%

US Consumer Services

0.9%

US Market


1 Year Return

-4.0%

ATGE

-51.2%

US Consumer Services

37.8%

US Market

Return vs Industry: ATGE exceeded the US Consumer Services industry which returned -51.2% over the past year.

Return vs Market: ATGE underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

ATGEIndustryMarket
7 Day-2.2%-17.3%0.9%
30 Day-2.9%-24.7%0.3%
90 Day-4.5%-46.3%2.1%
1 Year-4.0%-4.0%-51.1%-51.2%40.0%37.8%
3 Year-35.4%-35.4%-24.9%-27.7%63.8%53.5%
5 Year60.8%59.9%60.4%49.3%124.6%99.7%

Long-Term 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?

24.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATGE ($35.22) is trading below our estimate of fair value ($46.89)

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 (11.4x) compared to the US Consumer Services industry average (16.2x).

PE vs Market: ATGE is good value based on its PE Ratio (11.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ATGE's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ATGE is good value based on its PB Ratio (1.3x) compared to the US Consumer Services industry average (1.8x).


Future Growth

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

-5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATGE's earnings are forecast to decline over the next 3 years (-5.5% per year).

Earnings vs Market: ATGE's earnings are forecast to decline over the next 3 years (-5.5% per year).

High Growth Earnings: ATGE's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ATGE's revenue (6.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: ATGE's revenue (6.8% 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


Past Performance

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

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATGE has a large one-off loss of $51.9M impacting its March 31 2021 financial results.

Growing Profit Margin: ATGE's current net profit margins (14.7%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: ATGE's earnings have grown significantly by 28.7% 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 (-22.7%) over the past year, making it difficult to compare to the Consumer Services industry average (55.3%).


Return on Equity

High ROE: ATGE's Return on Equity (12.2%) is considered low.


Financial Health

How is Adtalem Global Education's financial position?


Financial Position Analysis

Short Term Liabilities: ATGE's short term assets ($1.5B) exceed its short term liabilities ($382.2M).

Long Term Liabilities: ATGE's short term assets ($1.5B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: ATGE's debt to equity ratio (82.5%) is considered high.

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 not well covered by operating cash flow (13.5%).

Interest Coverage: ATGE's interest payments on its debt are well covered by EBIT (14.3x coverage).


Balance Sheet


Dividend

What is Adtalem Global Education 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 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.


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?

2.9yrs

Average management tenure


CEO

Lisa Wardell (52 yo)

5.17yrs

Tenure

US$6,971,079

Compensation

Ms. Lisa W. Wardell A/L Lisa W. Pickrum, Esq., serves as Director at American Express Company since March 8, 2021. She serves as Chairman at Adtalem Global Education Inc. since July 16, 2019. Ms. Wardell h...


CEO Compensation Analysis

Compensation vs Market: Lisa's total compensation ($USD6.97M) is above average for companies of similar size in the US market ($USD3.71M).

Compensation vs Earnings: Lisa'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 considered experienced (2.9 years average tenure).


Board Members

Experienced Board: ATGE's board of directors are not considered experienced ( 2.4 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 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 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$1.741b
  • Shares outstanding: 49.42m
  • 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


Biography

Adtalem Global Education Inc. provides educational services worldwide. It operates through two segments, Medical and Healthcare and Financial Services. The Medical and Healthcare segment operates Chamberla...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 02:10
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.