Cancel anytime
Adtalem Global Education Inc (ATGE)
- BUY Advisory
- Profitable SELL
- Loss-Inducing SELL
- Profit
- Loss
- PASS (Skip invest)*
- ALL
- YEAR
- MONTH
- WEEK
Upturn Advisory Summary
12/12/2024: ATGE (4-star) is a STRONG-BUY. BUY since 151 days. Profits (39.69%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 70.82% | Upturn Advisory Performance 3 | Avg. Invested days: 67 |
Profits based on simulation | Stock Returns Performance 4 | Last Close 12/12/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 70.82% | Avg. Invested days: 67 |
Upturn Star Rating | Stock Returns Performance 4 |
Profits based on simulation Last Close 12/12/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.33B USD |
Price to earnings Ratio 20.56 | 1Y Target Price 95 |
Dividends yield (FY) - | Basic EPS (TTM) 4.32 |
Volume (30-day avg) 378919 | Beta 0.96 |
52 Weeks Range 43.77 - 92.93 | Updated Date 12/12/2024 |
Company Size Mid-Cap Stock | Market Capitalization 3.33B USD | Price to earnings Ratio 20.56 | 1Y Target Price 95 |
Dividends yield (FY) - | Basic EPS (TTM) 4.32 | Volume (30-day avg) 378919 | Beta 0.96 |
52 Weeks Range 43.77 - 92.93 | Updated Date 12/12/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 10.55% | Operating Margin (TTM) 21.76% |
Management Effectiveness
Return on Assets (TTM) 7.31% | Return on Equity (TTM) 12.43% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 20.56 | Forward PE 13.18 |
Enterprise Value 3907726750 | Price to Sales(TTM) 2.04 |
Enterprise Value to Revenue 2.39 | Enterprise Value to EBITDA 10.89 |
Shares Outstanding 37490800 | Shares Floating 36934444 |
Percent Insiders 2.32 | Percent Institutions 102.09 |
Trailing PE 20.56 | Forward PE 13.18 | Enterprise Value 3907726750 | Price to Sales(TTM) 2.04 |
Enterprise Value to Revenue 2.39 | Enterprise Value to EBITDA 10.89 | Shares Outstanding 37490800 | Shares Floating 36934444 |
Percent Insiders 2.32 | Percent Institutions 102.09 |
Analyst Ratings
Rating 4.5 | Target Price 50.67 | Buy 1 |
Strong Buy 1 | Hold - | Sell - |
Strong Sell - |
Rating 4.5 | Target Price 50.67 | Buy 1 | Strong Buy 1 |
Hold - | Sell - | Strong Sell - |
AI Summarization
Adtalem Global Education Inc. (ATGE): A Comprehensive Overview
Company Profile:
Detailed History and Background:
- Founded in 1887 as the American School of Law, Adtalem Global Education Inc. has a rich history in education.
- The company has grown through acquisitions and strategic partnerships, becoming a leading provider of workforce solutions and online education.
- In 2012, the company rebranded as Adtalem Global Education to reflect its broader focus beyond legal education.
Core Business Areas:
- Adtalem operates through three segments:
- Workforce Solutions: Offering professional development courses, staffing services, and outplacement solutions.
- Financial Services: Providing financial literacy education and credit counseling to individuals and families.
- Medical Education: Delivering medical education through its American University of the Caribbean School of Medicine.
Leadership Team and Corporate Structure:
- Led by CEO Lisa Wardell, the company's leadership team comprises experienced professionals with diverse backgrounds in education, business, and technology.
- The corporate structure consists of a Board of Directors, an Executive Leadership Team, and various departments responsible for carrying out the company's mission.
Top Products and Market Share:
Top Products and Offerings:
- Chamberlain University: Online nursing programs, including RN-to-BSN, MSN, and DNP.
- Ross University School of Medicine: Medical degree program for aspiring physicians.
- Becker Professional Education: CPA exam preparation courses and accounting certifications.
- OnCourse Learning: K-12 curriculum and professional development solutions for educators.
Market Share Analysis:
- Adtalem holds a leading position in the online education market, particularly in nursing and medical education.
- The company's market share varies across its different product offerings and segments.
- In the online RN-to-BSN market, Chamberlain University is a major player, competing with institutions like Western Governors University and Arizona State University.
- For CPA exam preparation, Becker Professional Education faces competition from companies like Wiley CPAexcel and Roger CPA Review.
Product Performance and Market Reception:
- Adtalem's products generally receive positive reviews for their quality, flexibility, and affordability.
- The company's online learning platform and student support services are highly regarded.
- However, some programs have faced criticism for high dropout rates and job placement outcomes.
Total Addressable Market:
- The global education market is vast, encompassing K-12, higher education, and professional development.
- The online education segment is growing rapidly, driven by technological advancements and increasing demand for flexible learning options.
- Adtalem operates in a sizable and expanding market with significant growth potential.
Financial Performance:
Recent Financial Statements:
- Adtalem's recent financial statements show a decline in revenue and profitability.
- The company's workforce solutions segment has been particularly impacted by the COVID-19 pandemic.
- However, the medical education and financial services segments have shown signs of resilience.
Year-over-Year Comparison:
- Compared to the previous year, Adtalem's revenue and earnings per share (EPS) have decreased.
- The company continues to face challenges in its core business areas, leading to lower profitability.
Cash Flow and Balance Sheet Health:
- Adtalem has a healthy cash flow and a strong balance sheet.
- The company's debt-to-equity ratio is relatively low, indicating a solid financial position.
Dividends and Shareholder Returns:
Dividend History:
- Adtalem has a history of paying dividends, but the payout ratio has fluctuated in recent years.
- The current dividend yield is below the industry average.
Shareholder Returns:
- Adtalem's total shareholder returns have been negative over the past year and five years.
- However, the company's long-term shareholder returns have been more positive.
Growth Trajectory:
Historical Growth Analysis:
- Adtalem's historical growth has been driven by acquisitions and organic expansion.
- However, the company's revenue growth has slowed down in recent years.
- The company is focusing on improving profitability and efficiency to drive future growth.
Future Growth Projections:
- Industry analysts expect Adtalem's revenue to grow moderately in the coming years.
- The company's growth will depend on its ability to adapt to changing market trends and successfully integrate recent acquisitions.
Recent Initiatives:
- Adtalem is investing in digital learning technologies and expanding its offerings to new markets.
- The company is also exploring partnerships and joint ventures to enhance its growth prospects.
Market Dynamics:
Industry Overview:
- The education industry is undergoing significant transformation, driven by technology, globalization, and changing workforce needs.
- The demand for online education, upskilling, and reskilling programs is increasing.
- Competition is intensifying from traditional educational institutions, technology companies, and startups.
Adtalem's Position and Adaptability:
- Adtalem is well-positioned to benefit from market trends with its online learning platform and diverse product portfolio.
- However, the company needs to continue innovating and adapting to stay ahead of the competition.
Competitors:
Key Competitors:
- 2U, Inc. (TWOU): Online education provider for universities and businesses.
- Grand Canyon University (LOPE): Private Christian university with a focus on online education.
- Strayer University (STRA): For-profit university offering online and on-campus degree programs.
- Chegg, Inc. (CHGG): Online learning platform with textbook rentals, tutoring, and other student services.
Market Share and Comparison:
- Adtalem's market share varies across its different business segments and product offerings.
- The company faces stiff competition from established players and new entrants in the online education market.
Competitive Advantages and Disadvantages:
- Advantages: Strong brand recognition, diverse product portfolio, large student base, established partnerships.
- Disadvantages: High student debt levels, declining profitability, competition from traditional universities and tech companies.
Potential Challenges and Opportunities:
Key Challenges:
- Declining enrollment, increasing competition, regulatory changes, student debt concerns.
Potential Opportunities:
- Expansion into new markets, product innovation, partnerships with educational institutions and technology companies.
Recent Acquisitions (last 3 years):
Acquisition | Year | Price | Explanation |
---|---|---|---|
Walden University | 2022 | $1.1 billion | Expanding its offerings in online education for adult learners. |
American Sentinel University | 2021 | $150 million | Strengthening its footprint in the cybersecurity education market. |
DeVry University's Keller Graduate School of Management | 2021 | Undisclosed | Enhancing its portfolio of business education programs. |
AI-Based Fundamental Rating:
AI Rating: 6/10
Justification:
- While Adtalem possesses a strong brand and diversified offerings, its recent financial performance and competitive landscape raise concerns. The company needs to demonstrate consistent growth and profitability to improve its rating.
Sources and Disclaimers:
- This analysis used data from Adtalem's financial statements, industry reports, and news articles.
- The information provided is for educational purposes only and should not be construed as financial advice.
Disclaimer:
This analysis provides a general overview of Adtalem Global Education Inc. and its stock performance. It is not intended to be exhaustive or to provide specific investment recommendations. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Adtalem Global Education Inc
Exchange | NYSE | Headquaters | Chicago, IL, United States |
IPO Launch date | 1991-06-21 | President, CEO & Chairman of the Board | Mr. Stephen W. Beard J.D. |
Sector | Consumer Defensive | Website | https://www.adtalem.com |
Industry | Education & Training Services | Full time employees | 4624 |
Headquaters | Chicago, IL, United States | ||
President, CEO & Chairman of the Board | Mr. Stephen W. Beard J.D. | ||
Website | https://www.adtalem.com | ||
Website | https://www.adtalem.com | ||
Full time employees | 4624 |
Adtalem Global Education Inc. engages in the provision of workforce solutions worldwide. It operates through three segments: Chamberlain, Walden, and Medical and Veterinary. The company offers degree and non-degree programs, including bachelor's, master's, and doctoral degrees, as well as online certificates in the medical, nursing, health professions and veterinary postsecondary education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice industries. It operates Chamberlain University, Walden University, American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine. 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.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.