Adtalem Global Education (ATGE) AI Stock Analysis

• Market Cap: $4.14B
• Dividend Yield: N/A
• Average Volume (3M): 410.77K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.71
• Revenue Growth: 13.10%
• EPS Growth: 127.72%
• Country: US
• Employees: 4,624
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Education & Training Services
• EPS (TTM): 1.92
• Shares Outstanding: 35,927,963
• 10 Day Avg. Volume: 370,699
• 30 Day Avg. Volume: 410,775
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: $140.00
• Price Target Upside: 22.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $135.00 ▲(18.60%Upside)

Adtalem Global Education receives a strong overall score due to its robust financial performance and positive earnings call. The company's potential is tempered by technical analysis indicating short-term bearish trends and valuation concerns due to a lack of dividend yield. Continued focus on managing debt and improving margins in certain segments could enhance future prospects.

Positive Factors

Guidance and Future Performance

Management raised FY2025 guidance, indicating confidence in future performance.

Share Repurchase Program

The company reauthorized another share repurchase program after completing its prior authorization.

Negative Factors

Revenue Performance

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

Stock Valuation

The stock trades at a premium to its for-profit postsecondary peer group average.

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 demonstrates strong financial health with notable revenue growth, solid profit margins, and effective cash flow management. The balance sheet reflects stability with a moderate debt-to-equity ratio, though historical net income volatility and high total debt require monitoring.

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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Adtalem Global Education Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 113.83
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 113.83 is below the 20-day moving average (MA) of 118.54, below the 50-day MA of 123.88, and above the 200-day MA of 102.71, indicating a neutral trend. The MACD of -2.46 indicates Positive momentum. The RSI at 34.24 is Neutral, neither overbought nor oversold. The STOCH value of 31.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$4.79B	21.19	29.85%	―	6.31%	11.24%
ATGE	76 Outperform	$4.14B	19.10	16.62%	―	13.10%	127.72%
GHC	72 Outperform	$4.01B	6.44	14.87%	0.78%	5.91%	137.49%
PRDO	71 Outperform	$1.86B	12.56	16.54%	1.83%	6.35%	0.35%
STRA	69 Neutral	$1.89B	16.79	6.86%	3.06%	5.72%	11.02%
LAUR	68 Neutral	$3.43B	12.27	31.14%	―	1.26%	140.30%
Sector *	63 Neutral	$17.26B	10.39	-8.50%	3.06%	1.63%	-25.95%

Adtalem Global Education Corporate Events

Adtalem CEO Initiates 10b5-1 Trading Plan

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.

The most recent analyst rating on (ATGE) stock is a Buy with a $84.00 price target. To see the full list of analyst forecasts on Adtalem Global Education stock, see the ATGE Stock Forecast page.

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.