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ATGE

Adtalem Global EducationNYSE:ATGE Stock Report

Market Cap

US$1.9b

7D

1.0%

1Y

54.4%

Updated

27 Sep, 2021

Data

Company Financials +
ATGE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance1/6
Financial Health3/6
Dividends0/6

ATGE Overview

Adtalem Global Education Inc. provides workforce solutions worldwide.

Adtalem Global Education Competitors

Chegg

NYSE:CHGG

US$10.5b

Grand Canyon Education

NasdaqGS:LOPE

US$3.9b

Laureate Education

NasdaqGS:LAUR

US$3.2b

New Oriental Education & Technology Group

NYSE:EDU

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Adtalem Global Education
Historical stock prices
Current Share PriceUS$38.96
52 Week HighUS$23.22
52 Week LowUS$43.85
Beta1.17
1 Month Change3.67%
3 Month Change8.92%
1 Year Change54.42%
3 Year Change-18.63%
5 Year Change69.17%
Change since IPO3,096.72%

Recent News & Updates

Shareholder Returns

ATGEUS Consumer ServicesUS Market
7D1.0%-2.0%0.1%
1Y54.4%-53.5%35.3%

Return vs Industry: ATGE exceeded the US Consumer Services industry which returned -53.5% over the past year.

Return vs Market: ATGE exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is ATGE's price volatile compared to industry and market?
ATGE volatility
ATGE Beta1.17
Industry Beta0.90
Market Beta1

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$1.93b
Earnings (TTM)US$102.04m
Revenue (TTM)US$1.11b

18.9x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ATGE income statement (TTM)
RevenueUS$1.11b
Cost of RevenueUS$489.23m
Gross ProfitUS$623.15m
ExpensesUS$521.11m
EarningsUS$102.04m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.06
Gross Margin56.02%
Net Profit Margin9.17%
Debt/Equity Ratio82.9%

How did ATGE perform over the long term?

See historical performance and comparison

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 ($38.68) is trading below our estimate of fair value ($135.85)

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


Price To Earnings Ratio

PE vs Industry: ATGE is poor value based on its PE Ratio (18.8x) compared to the US Consumer Services industry average (14.6x).

PE vs Market: ATGE is poor value based on its PE Ratio (18.8x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: ATGE is good value based on its PEG Ratio (0.6x)


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 (1.9x).


Future Growth

How is Adtalem Global Education forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

29.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATGE's forecast earnings growth (29.2% per year) is above the savings rate (2%).

Earnings vs Market: ATGE's earnings (29.2% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: ATGE's revenue (24% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ATGE's revenue (24% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATGE's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

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

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATGE has a large one-off loss of $41.4M impacting its June 30 2021 financial results.

Growing Profit Margin: ATGE's current net profit margins (9.2%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: ATGE's earnings have grown significantly by 23.1% 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 (-58.2%) over the past year, making it difficult to compare to the Consumer Services industry average (35.4%).


Return on Equity

High ROE: ATGE's Return on Equity (7.8%) 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 ($408.8M).

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 (82.9%) is considered high.

Reducing Debt: ATGE's debt to equity ratio has increased from 0.09% to 82.9% over the past 5 years.

Debt Coverage: ATGE's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: ATGE's interest payments on its debt are well covered by EBIT (5.9x 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?

0.4yrs

Average management tenure


CEO

Steve Beard (50 yo)

no data

Tenure

US$2,166,818

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 ($USD2.17M) is below average for companies of similar size in the US market ($USD3.68M).

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 ( 0.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ATGE's board of directors are not considered experienced ( 2.2 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 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$1.933b
  • Shares outstanding: 49.62m
  • 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 Analysis2021/09/27 22:53
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.