Adtalem Global Education (ATGE) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: N/A
• Average Volume (3M): 378.51K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.74
• Revenue Growth: 12.24%
• EPS Growth: 52.97%
• Country: US
• Employees: 4,624
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 2.43
• Shares Outstanding: 34,508,522
• 10 Day Avg. Volume: 531,167
• 30 Day Avg. Volume: 378,512
• PEG Ratio: 0.25
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 16.41
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 3.96
• Enterprise Value/Ebitda: 9.58
• 1Y Price Target: $161.00
• Price Target Upside: 52.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $120.00 ▲(13.55% Upside)

The score is driven primarily by strong financial performance (healthy margins and robust free cash flow) and a constructive earnings update (raised EPS guidance and continued revenue outlook). Offsetting factors include mixed/weak broader technical trends and notable execution risks (Chamberlain softness and lending/regulatory uncertainty), while valuation appears reasonable at a mid-teens P/E.

Positive Factors

Strong margins & cash generation

Sustained high gross and operating margins combined with strong free cash flow conversion provide durable earnings quality and internal funding for investments, debt paydown, or buybacks. This cash generation supports strategic flexibility and resilience across industry cycles over the next 2–6 months.

Enrollment scale & Walden growth

Consistent multi-quarter enrollment growth and pronounced online (Walden) momentum reflect scalable delivery and differentiated digital capabilities. Scale in healthcare education and strong online demand underpin structural revenue durability and margin expansion potential over the medium term.

Capital allocation & balance sheet progress

Robust cash flow plus an active repurchase program and prior debt reduction signal disciplined capital allocation. This strengthens shareholder returns while preserving flexibility for strategic investments, improving long-term return on capital and signaling management confidence in core operations.

Negative Factors

Chamberlain enrollment concentration

Chamberlain’s reliance on a large fall recruitment cycle and current softness creates structural execution risk; slower conversion from rising applications may delay revenue recovery and keep margin pressure, making consolidated performance sensitive to enrollment execution over coming terms.

Reliance on supplemental student lending

Dependence on external lending partnerships for student financing is a structural exposure: execution delays or regulatory changes could constrain access to tuition funding, reduce enrollments or increase financing costs, and therefore materially affect cash collection and growth durability.

Material absolute debt & margin headwinds

Although leverage is improving, sizable absolute debt limits financial flexibility if operations soften. Coupled with planned investment-driven margin volatility and a higher expected tax rate, this raises the risk that earnings and cash flow will be more sensitive to enrollment or execution setbacks over the medium term.

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 and fees paid by students enrolled in its educational programs. The company operates several institutions, including medical and nursing schools, which often charge higher tuition rates due to the specialized nature of their programs. Additionally, ATGE earns revenue from online education offerings, adult and continuing education programs, and professional certification courses. The company may also benefit from partnerships with employers looking to upskill their workforce, as well as government funding for education programs. Financial aid and federal student loans are significant factors in driving enrollment and, consequently, revenue for the company.

Adtalem Global Education Financial Statement Overview

Summary

Strong profitability and margin profile (TTM gross margin ~58.5%, operating margin ~19.7%, net margin ~13.7%) with consistently robust free cash flow (TTM FCF ~$368M; ~85% of net income). Balance sheet leverage is improving (debt-to-equity ~0.53) but debt remains material, and revenue growth has decelerated (TTM ~3% vs higher prior-year levels).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with healthy gross margin (~58.5%) and strong operating profitability (operating margin ~19.7%), supporting a net margin of ~13.7%. Growth is positive but has moderated versus prior years (TTM revenue growth ~3.0% vs ~12.9% in FY2025 and ~9.2% in FY2024). The multi-year trend is favorable, with meaningful margin expansion and earnings improvement since FY2023, though the slowing top-line trajectory is a key watch item.

Balance Sheet

Leverage appears manageable: TTM debt is ~$730M against ~$1.38B in equity (debt-to-equity ~0.53), improving from higher leverage levels in earlier years. Profitability on shareholder capital is strong (TTM return on equity ~17.5%), reflecting improved earnings power. The main weakness is that debt remains material in absolute terms, leaving the company more exposed if operating conditions soften, even though the leverage trend is moving in the right direction.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow is ~$428M and free cash flow is ~$368M, with strong free cash flow growth (TTM ~13.8%). Free cash flow conversion is solid (free cash flow is ~85% of net income), indicating earnings quality is generally good. A notable weakness is that cash flow does not fully cover reported operating profit (operating cash flow at ~66% of operating profit), suggesting working-capital timing or other operating cash uses can create periodic volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.79B	1.58B	1.45B	1.38B	899.25M
Gross Profit	1.02B	886.10M	802.34M	722.07M	441.34M
EBITDA	397.67M	346.96M	328.95M	297.42M	182.75M
Net Income	237.06M	136.78M	93.36M	310.99M	70.03M
Balance Sheet
Total Assets	2.75B	2.74B	2.81B	3.03B	3.03B
Cash, Cash Equivalents and Short-Term Investments	199.60M	219.31M	272.19M	346.97M	346.97M
Total Debt	774.00M	847.85M	896.19M	1.07B	1.07B
Total Liabilities	1.32B	1.37B	1.35B	1.54B	1.54B
Stockholders Equity	1.43B	1.37B	1.46B	1.49B	1.49B
Cash Flow
Free Cash Flow	287.57M	246.88M	165.90M	-20.45M	143.53M
Operating Cash Flow	337.90M	295.77M	191.91M	10.60M	192.20M
Investing Cash Flow	-41.92M	-47.85M	23.74M	-551.80M	-56.69M
Financing Cash Flow	-316.02M	-301.80M	-288.51M	-424.48M	676.47M

Adtalem Global Education Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 105.68 is below the 20-day moving average (MA) of 114.27, above the 50-day MA of 104.03, and below the 200-day MA of 120.58, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 40.53 is Neutral, neither overbought nor oversold. The STOCH value of 15.64 is Positive, 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
STRA	77 Outperform	$2.00B	17.69	6.76%	2.99%	3.74%	-8.40%
PRDO	76 Outperform	$2.06B	13.69	16.14%	1.88%	24.23%	17.56%
GHC	75 Outperform	$5.09B	6.97	17.20%	0.65%	4.13%	228.37%
LOPE	74 Outperform	$4.86B	23.63	27.77%	―	7.05%	-2.63%
ATGE	73 Outperform	$3.57B	15.57	17.92%	―	12.24%	52.97%
LAUR	73 Outperform	$5.05B	25.57	20.15%	―	2.01%	-13.82%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Adtalem Global Education Corporate Events

Adtalem Announces New $750M Share Buyback Program

On December 15, 2025, Adtalem Global Education announced the completion of a $150 million share repurchase program and the authorization of a new $750 million share repurchase initiative, set to run through December 2028. This move reflects the company’s confidence in its strategic direction and financial strength, allowing it to invest in growth opportunities while returning capital to shareholders. Since February 2022, Adtalem has returned $913 million to shareholders and reduced its debt significantly, demonstrating robust operational execution and financial management.

The most recent analyst rating on (ATGE) stock is a Buy with a $107.00 price target. To see the full list of analyst forecasts on Adtalem Global Education stock, see the ATGE Stock Forecast page.