Adtalem Global Education (ATGE) AI Stock Analysis

• Market Cap: $4.62B
• Dividend Yield: N/A
• Average Volume (3M): 586.04K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.71
• Revenue Growth: 13.10%
• EPS Growth: 127.72%
• Country: US
• Employees: 4,624
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Education & Training Services
• EPS (TTM): 1.92
• Shares Outstanding: 35,927,963
• 10 Day Avg. Volume: 684,094
• 30 Day Avg. Volume: 586,036
• PEG Ratio: 0.89
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $135.67
• Price Target Upside: 5.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: $147.00 ▲( 14.43% Upside)

Adtalem Global Education shows strong financial performance with robust revenue and enrollment growth, supported by positive earnings guidance. The technical analysis indicates upward momentum, while valuation is fair given the growth prospects. The earnings call highlighted strategic achievements, although the margin decline in the Medical and Veterinary segment should be monitored. Overall, the stock is well-positioned in its industry, with a solid outlook for future growth.

Positive Factors

Earnings

Strong enrollment growth and margin expansion helped ATGE beat expectations.

Financial Performance

Management raised FY2025 guidance, indicating confidence in future performance.

Strategic Focus

The company's strategic focus on healthcare has led to excellent execution, with earnings consistently exceeding expectations.

Negative Factors

Revenue

Revenue per average enrollment fell 0.6% year over year, contrary to expectations of growth.

Valuation

The stock trades at a premium to its for-profit postsecondary peer group average, which is viewed as justified given Adtalem’s focus on nursing and healthcare in general.

Adtalem Global Education Business Overview & Revenue Model

Company Description

Adtalem Global Education (ATGE) is a leading workforce solutions provider that operates a diverse portfolio of institutions and companies in the education sector. It focuses on empowering students and professionals to achieve their career goals through high-quality educational programs and services. Adtalem's core offerings include degree programs in healthcare, financial services, and professional education, delivered through its flagship institutions like Chamberlain University and Walden University.

How the Company Makes Money

Adtalem Global Education generates revenue primarily through tuition fees and related educational services offered by its academic institutions. The company earns income by enrolling students in its various degree and certificate programs, with a significant focus on healthcare education. Additionally, Adtalem benefits from partnerships and collaborations with healthcare institutions, government agencies, and other organizations that support its mission to provide career-focused education. The company also explores opportunities in professional education and training, which contribute to its diverse revenue streams. Factors such as enrollment rates, tuition pricing, and the expansion or introduction of new programs significantly impact Adtalem's earnings.

Adtalem Global Education Financial Statement Overview

Summary

Adtalem Global Education demonstrates strong profitability with a solid gross profit margin and improving net profit margin. The cash flow is robust, although there is room for improvement in free cash flow growth. The balance sheet is stable but could benefit from maintaining equity levels. Overall, the financials indicate a positive growth trajectory.

Income Statement

Adtalem Global Education exhibits a strong financial performance with a solid gross profit margin and improving net profit margin. The TTM (Trailing-Twelve-Months) reveals a gross profit margin of 68.63% and a net profit margin of 12.34%, both indicating profitable operations. Revenue growth rate from the previous year is 8.46%, demonstrating robust growth potential. Furthermore, the EBIT margin of 19.40% and EBITDA margin of 23.68% underscore operational efficiency and effective cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.60, indicating manageable leverage. The return on equity (ROE) is a healthy 14.48%, showcasing effective utilization of shareholders' equity to generate profits. The equity ratio of 52.85% suggests a solid equity base relative to total assets, providing a cushion against liabilities. However, there is slight concern about the declining equity trend over the years.

Cash Flow

Cash flows are strong with a significant improvement in free cash flow growth rate at -7.04%, reflecting consistent cash generation capabilities. The operating cash flow to net income ratio of 1.29 demonstrates efficient conversion of net income into cash. The free cash flow to net income ratio is a robust 1.10, indicating strong cash surplus after capital expenditures. These metrics highlight effective cash management but suggest room for improvement in maintaining growth in free cash flow.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.69B	1.58B	1.45B	1.39B	1.11B	1.05B
	Gross Profit
971.72M	886.10M	802.34M	727.35M	623.15M	561.95M
	EBIT
327.53M	217.05M	168.17M	163.11M	161.48M	142.26M
	EBITDA
399.63M	335.56M	326.29M	264.45M	210.80M	345.70M
	Net Income Common Stockholders
208.26M	136.78M	93.36M	-29.83M	70.03M	243.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
193.96M	219.31M	273.69M	346.97M	494.61M	509.48M
	Total Assets
2.72B	2.74B	2.81B	3.03B	3.05B	2.23B
	Total Debt
864.61M	847.85M	896.19M	1.07B	1.29B	516.79M
	Net Debt
670.65M	628.55M	622.50M	719.76M	799.28M	16.27M
	Total Liabilities
1.28B	1.37B	1.35B	1.52B	1.75B	915.41M
	Stockholders Equity
1.44B	1.37B	1.46B	1.51B	1.30B	1.31B
Cash Flow		Free Cash Flow
233.83M	246.88M	165.90M	-20.63M	143.53M	63.55M
	Operating Cash Flow
273.49M	295.77M	202.91M	10.42M	192.20M	107.69M
	Investing Cash Flow
-37.87M	-47.85M	12.74M	-551.63M	-56.69M	382.52M
	Financing Cash Flow
-226.28M	-301.80M	-288.51M	-424.48M	676.47M	-256.11M

Adtalem Global Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATGE, the sentiment is Positive. The current price of 128.46 is above the 20-day moving average (MA) of 121.14, above the 50-day MA of 109.32, and above the 200-day MA of 91.87, indicating a bullish trend. The MACD of 7.27 indicates Negative momentum. The RSI at 61.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATGE.

Adtalem Global Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	82 Outperform	$5.49B	24.30	29.85%	―	6.31%	11.24%
ATGE	80 Outperform	$4.62B	21.32	16.62%	―	13.10%	127.72%
PRDO	77 Outperform	$2.03B	13.72	16.54%	1.63%	6.35%	0.35%
LAUR	74 Outperform	$3.24B	11.60	31.14%	―	1.26%	140.30%
STRA	73 Outperform	$2.11B	18.73	6.86%	2.74%	5.72%	11.02%
GHC	71 Outperform	$4.02B	6.46	14.87%	0.75%	5.91%	137.49%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%

Adtalem Global Education Corporate Events

Adtalem Announces New $150M Share Repurchase Program

On May 6, 2025, Adtalem Global Education announced a new $150 million share repurchase program authorized by its board of directors, allowing the company to buy back shares through May 2028. This follows the completion of a previous $300 million repurchase program, reflecting Adtalem’s strong financial position and commitment to shareholder value. The company has returned $763 million to shareholders since February 2022, reducing shares outstanding by 28%. Adtalem aims to leverage its robust cash flow to expand healthcare education programs and continue enhancing shareholder value.