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Adtalem Global Education Inc (ATGE)
NYSE:ATGE
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Adtalem Global Education
(NYSE:ATGE)
Rating:72Outperform
Price Target:
$133.00
▼(-1.39% Downside)
Positive Factors
Enrollment Growth
Total student enrollment increased 10.2% to 91,780, marking the 10th consecutive quarter of year-over-year growth.
Financial Performance
Adtalem Global Education reported financial results that significantly topped expectations and initial guidance was well ahead of consensus.
Strategic Focus
The company's strategic focus on healthcare has led to excellent execution, with earnings consistently exceeding expectations.
Negative Factors
Revenue Per Enrollment
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 could be a concern for value-focused investors.
Adtalem Global Education (ATGE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.65B
Dividend YieldN/A
Average Volume (3M)401.30K
Price to Earnings (P/E)21.1
Beta (1Y)0.75
Revenue Growth12.85%
EPS Growth81.69%
CountryUS
Employees4,624
SectorConsumer Defensive
Sector Strength58
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.66
Shares Outstanding35,955,710
10 Day Avg. Volume480,294
30 Day Avg. Volume401,296
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.99
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda12.99
Forecast
1Y Price Target
$148.00Price Target Upside9.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Adtalem Global Education Business Overview & Revenue Model
Company DescriptionAdtalem Global Education Inc. provides workforce solutions worldwide. It operates through three segments, Chamberlain, Walden, and Medical and Veterinary. The Chamberlain segment offers degree and non-degree programs in the nursing and health professions postsecondary education industry. This segment operates Chamberlain University. The Walden segment offers online certificates, bachelor's, master's, and doctoral degrees, including nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. This segment also operates Walden University. The Medical and Veterinary segment provides degree and non-degree programs in the medical and veterinary postsecondary education industry. This segment operates 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.
How the Company Makes MoneyAdtalem Global Education generates revenue primarily through tuition fees collected from students enrolled in its various degree programs and professional certifications. The company's key revenue streams include enrollment in healthcare and business programs, with a significant portion coming from its nursing and medical education offerings. Additionally, Adtalem benefits from partnerships with healthcare organizations and other institutions, which can provide clinical placements and job opportunities for students, thus enhancing its programs' attractiveness and value proposition. These strategic collaborations, alongside a focus on high-demand sectors, contribute to Adtalem's financial performance.
Adtalem Global Education Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q4-2025)
| % Change Since: 6.01%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The overall sentiment of the call is largely positive, driven by significant revenue growth, strong enrollment figures, strategic partnerships, and effective financial management. While there are some concerns about regulatory changes and a decrease in Chamberlain's adjusted EBITDA margin, the highlights significantly outweigh the lowlights.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Total revenue reached $1.79 billion, up 12.9% year-over-year. Adjusted EBITDA margin expanded 190 basis points to 25.7%. Adjusted earnings per share grew 33% to $6.67. Free cash flow was $283 million.
Enrollment Growth
Total enrollment grew every quarter, averaging over 10% for the year. Chamberlain University and Walden University both achieved strong enrollment growth, with Walden up 15% and Chamberlain up 5.8% in the fourth quarter.
Strategic Partnerships
A newly announced partnership with SSM Health provides a direct employment pathway for students, showcasing the model's scalability and alignment with employer needs.
Strong Segment Performance
Both Chamberlain and Walden were recognized by the Carnegie Foundation for their impact on post-graduation earnings. Med/Vet segment enrollment grew by 1% with promising signals for long-term growth.
Debt Reduction and Share Repurchase
Reduced Term Loan B balance by $100 million, lowered borrowing costs by 75 basis points, and returned $211 million to shareholders through share repurchases.
Negative Updates
Challenges in Adjusted EBITDA Margin at Chamberlain
Adjusted EBITDA margin for Chamberlain decreased by 390 basis points to 24.4% compared to the prior year due to increased growth investments.
Regulatory and Political Concerns
Concerns were raised about potential changes in loan caps and the elimination of Grad PLUS, though the company believes students will have other financing options.
Company Guidance
During the Adtalem Global Education Fourth Quarter Fiscal Year 2025 Results Call, the company provided robust guidance for fiscal year 2026, highlighting continued strong performance and strategic growth initiatives. They anticipate revenue between $1.90 billion and $1.94 billion, reflecting a 6% to 8.5% year-over-year increase. Adjusted earnings per share (EPS) are expected to range from $7.60 to $7.90, representing a 14% to 18.5% growth from the previous year. The company reported significant financial accomplishments for fiscal 2025, including a revenue of $1.79 billion, a 12.9% increase from the prior year, and an adjusted EBITDA margin of 25.7%, up 190 basis points. They also generated $283 million in free cash flow and reduced their Term Loan B balance by $100 million. Additionally, Adtalem returned $211 million to shareholders through share repurchases. Looking ahead, the company plans to leverage its strong market position and invest in growth opportunities, particularly in student-facing technologies and health care education partnerships, ensuring sustainable long-term growth.Adtalem Global Education Financial Statement Overview
Summary
Adtalem Global Education demonstrates solid financial performance with consistent revenue growth and improved profitability margins. However, challenges in free cash flow growth and a moderately high debt-to-equity ratio suggest areas for improvement.Income Statement
Adtalem Global Education has shown consistent revenue growth over the years, with a recent growth rate of 2.71%. The gross profit margin has remained strong, indicating efficient cost management. The net profit margin has improved significantly from negative figures in 2022 to a healthy 13.25% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins have also shown positive trends, supporting overall profitability. However, the growth rate has slowed down compared to previous years, which could be a concern for future expansion.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved over the years, indicating better leverage management, though it remains moderately high. Return on equity has increased to 16.54% in 2025, showcasing improved efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced capital structure. However, the company should continue to focus on reducing debt levels to further strengthen its financial position.70
Positive
Cash Flow
Operating cash flow has increased, reflecting better cash generation from core operations. However, free cash flow growth has been negative recently, indicating potential challenges in maintaining liquidity. The operating cash flow to net income ratio is healthy, suggesting good cash conversion efficiency. The company should focus on improving free cash flow to ensure sustainable financial health.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.79B | 1.79B | 1.58B | 1.45B | 1.39B | 899.25M |
| Gross Profit | 1.03B | 1.07B | 886.10M | 802.34M | 722.07M | 441.34M |
| EBITDA | 411.22M | 435.30M | 335.56M | 326.29M | 264.45M | 210.80M |
| Net Income | 237.06M | 237.06M | 136.78M | 93.36M | 310.99M | 70.03M |
Balance Sheet | ||||||
| Total Assets | 2.75B | 2.75B | 2.74B | 2.81B | 3.03B | 3.05B |
| Cash, Cash Equivalents and Short-Term Investments | 199.60M | 199.60M | 219.31M | 272.19M | 346.97M | 476.38M |
| Total Debt | 774.00M | 774.00M | 847.85M | 896.19M | 1.07B | 1.29B |
| Total Liabilities | 1.32B | 1.32B | 1.37B | 1.35B | 1.52B | 1.75B |
| Stockholders Equity | 1.43B | 1.43B | 1.37B | 1.46B | 1.51B | 1.30B |
Cash Flow | ||||||
| Free Cash Flow | 287.57M | 283.41M | 246.88M | 165.90M | -20.63M | 143.53M |
| Operating Cash Flow | 337.90M | 333.73M | 295.77M | 202.91M | 10.42M | 192.20M |
| Investing Cash Flow | -41.92M | -41.92M | -47.85M | 23.74M | -551.63M | -56.69M |
| Financing Cash Flow | -316.02M | -316.02M | -301.80M | -288.51M | -424.48M | 676.47M |
Adtalem Global Education Technical Analysis
Positive
134.88
Price Trends
121.54
Positive
119.12
Positive
107.32
Positive
Market Momentum
3.75
Negative
77.72
Negative
94.43
Negative
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 134.88 is above the 20-day moving average (MA) of 122.56, above the 50-day MA of 121.54, and above the 200-day MA of 107.32, indicating a bullish trend. The MACD of 3.75 indicates Negative momentum. The RSI at 77.72 is Negative, neither overbought nor oversold. The STOCH value of 94.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATGE.
Adtalem Global Education Risk Analysis
Adtalem Global Education disclosed 45 risk factors in its most recent earnings report. Adtalem Global Education reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Adtalem Global Education Peers Comparison
Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.13B | 14.23 | 16.39% | 1.56% | 15.99% | 13.25% | |
77 Outperform | $5.70B | 24.42 | 30.77% | ― | 6.52% | 11.72% | |
77 Outperform | $3.86B | 15.37 | 25.81% | ― | 0.44% | 35.19% | |
76 Outperform | $1.90B | 16.51 | 6.89% | 2.93% | 4.31% | -1.08% | |
74 Outperform | $4.70B | 6.92 | 16.28% | 0.65% | 4.73% | 426.68% | |
72 Outperform | $4.65B | 21.06 | 16.60% | ― | 12.85% | 81.69% | |
69 Neutral | ¥222.72B | 21.81 | 8.23% | 2.13% | 4.96% | 1.22% |
* Consumer Defensive Sector Average
Performance Comparison
ATGE
Adtalem Global Education
134.88
59.53
79.00%
PRDO
Perdoceo Education
33.37
10.94
48.77%
LOPE
Grand Canyon Education
203.39
61.10
42.94%
STRA
Strategic Education
82.04
-12.80
-13.50%
GHC
Graham Holdings
1,095.98
312.36
39.86%
LAUR
Laureate Education
26.92
11.61
75.83%
Adtalem Global Education Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Adtalem Global Education Amends Credit Agreement for Growth
Positive
Aug 7, 2025
On August 6, 2025, Adtalem Global Education Inc. announced an amendment to its credit agreement, increasing its revolving facility by $100 million and extending its maturity to 2030. The company reported exceptional fiscal year 2025 results, with a 12.9% increase in revenue and a 33.1% growth in adjusted earnings per share. Total enrollment grew by 10.2% year-over-year, driven by strong performances from Chamberlain and Walden Universities. Adtalem’s strategic initiatives, including partnerships and program accreditations, are positioning it for sustained growth and impact in the healthcare education sector.
Regulatory Filings and Compliance
Adtalem CEO Initiates 10b5-1 Trading Plan
Neutral
Jul 21, 2025
On June 10, 2025, Stephen W. Beard, CEO of Adtalem Global Education, initiated a 10b5-1 trading plan to sell up to 108,000 shares of the company’s common stock. This plan, compliant with the Securities Exchange Act, allows for sales if certain price thresholds are met, with the first potential sale not before September 12, 2025. The plan will not affect Beard’s compliance with stock ownership guidelines and is set to terminate on May 29, 2026.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.