Adtalem Global Education (ATGE) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: N/A
• Average Volume (3M): 456.58K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.74
• Revenue Growth: 13.10%
• EPS Growth: 127.72%
• Country: US
• Employees: 4,624
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Education & Training Services
• EPS (TTM): 1.92
• Shares Outstanding: 35,927,963
• 10 Day Avg. Volume: 529,581
• 30 Day Avg. Volume: 456,577
• PEG Ratio: -0.04
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.27
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $138.33
• Price Target Upside: 13.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $147.00 ▲(20.83%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

Adtalem Global Education reported financial results that significantly topped expectations and full-year guidance was raised.

Market Position

ATGE is the largest healthcare education operator in the US and is seen as the best way to address the long-term structural supply deficit in healthcare labor.

Student Enrollment

Total student enrollment increased 9.8%, marking the seventh consecutive year-over-year increase after at least two years of decline.

Negative Factors

Revenue Performance

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

Valuation Concerns

The stock trades at a premium to its for-profit postsecondary peer group average, which might raise concerns among some investors.

Adtalem Global Education Business Overview & Revenue Model

Company Description

Adtalem 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 Money

Adtalem 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 Financial Statement Overview

Summary

Adtalem Global Education displays strong financial health with consistent revenue growth, solid profitability margins, and effective cash flow management. The balance sheet shows a stable equity position, although leverage remains moderately high. Overall, the company is well-positioned in the Education & Training Services industry, with potential risks that include income volatility and debt management, which should be monitored to sustain future growth.

Income Statement

Adtalem Global Education shows strong revenue growth with a year-over-year increase of approximately 9.88% from the previous annual report. The company maintains solid profitability, as evidenced by a high gross profit margin of 57.91% and a net profit margin of 13.34% for the TTM (Trailing-Twelve-Months) period. The EBIT and EBITDA margins, at 19.37% and 23.38% respectively, indicate robust operational efficiency. However, the historical net income volatility poses a potential risk.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.54, indicating moderate leverage. The return on equity is commendable at 16.21%, suggesting efficient use of equity capital. The equity ratio of 51.36% signifies a solid equity base relative to total assets, providing financial stability. Nonetheless, the company's total debt has remained relatively high over recent years, which might bear watching.

Cash Flow

The cash flow statement highlights a healthy free cash flow growth rate of 17.66% from the previous year, along with a strong operating cash flow to net income ratio of 1.37, reflecting efficient cash conversion from earnings. The free cash flow to net income ratio stands at 1.25, indicating effective cash generation relative to profits. The company appears to manage its cash flows well, although significant fluctuations in financing activities could suggest potential future challenges in capital management.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.74B	1.58B	1.45B	1.39B	1.11B	1.05B
Gross Profit	1.01B	886.10M	802.34M	727.35M	623.15M	561.95M
EBITDA	406.95M	335.56M	326.29M	264.45M	210.80M	345.70M
Net Income	232.27M	136.78M	93.36M	-29.83M	70.03M	243.54M
Balance Sheet
Total Assets	2.79B	2.74B	2.81B	3.03B	3.05B	2.23B
Cash, Cash Equivalents and Short-Term Investments	219.02M	219.31M	273.69M	346.97M	494.61M	509.48M
Total Debt	780.53M	847.85M	896.19M	1.07B	1.29B	516.79M
Total Liabilities	1.36B	1.37B	1.35B	1.52B	1.75B	915.41M
Stockholders Equity	1.43B	1.37B	1.46B	1.51B	1.30B	1.31B
Cash Flow
Free Cash Flow	290.56M	246.88M	165.90M	-20.63M	143.53M	63.55M
Operating Cash Flow	318.78M	295.77M	202.91M	10.42M	192.20M	107.69M
Investing Cash Flow	-26.23M	-47.85M	12.74M	-551.63M	-56.69M	382.52M
Financing Cash Flow	-258.69M	-301.80M	-288.51M	-424.48M	676.47M	-256.11M

Adtalem Global Education Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 121.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATGE, the sentiment is Neutral. The current price of 121.66 is below the 20-day moving average (MA) of 124.11, below the 50-day MA of 123.19, and above the 200-day MA of 99.31, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 37.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATGE.

Adtalem Global Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	78 Outperform	$5.20B	23.05	29.85%	―	6.31%	11.24%
PRDO	77 Outperform	$2.10B	14.16	16.54%	1.62%	6.35%	0.35%
ATGE	75 Outperform	$4.42B	20.42	16.62%	―	13.10%	127.72%
LAUR	74 Outperform	$3.52B	12.59	31.14%	―	1.26%	140.30%
GHC	73 Outperform	$4.15B	6.68	14.87%	0.76%	5.91%	137.49%
STRA	67 Neutral	$2.02B	17.87	6.86%	2.88%	5.72%	11.02%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%

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.