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Adtalem Global Education Inc (ATGE)
NYSE:ATGE
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Adtalem Global Education (ATGE) AI Stock Analysis

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ATGE

Adtalem Global Education

(NYSE:ATGE)

Rating:76Outperform
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 (ATGE) vs. SPDR S&P 500 ETF (SPY)

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:May 08, 2025
(Q3-2025)
|
% Change Since: -1.77%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, with strong revenue and enrollment growth across various segments. There were significant achievements in expansion and innovation, particularly in healthcare education. The only notable challenge was a decline in margin within the Medical and Veterinary segment, attributed to strategic investments. Overall, the company's strategic initiatives and financial performance were well-received, indicating a strong future outlook.
Q3-2025 Updates
Positive Updates
Revenue Growth
Revenue grew by 13% to $466 million, reflecting strong performance across all segments.
Enrollment Increase
Total enrollment increased by 9.8% year-over-year, marking seven consecutive quarters of growth with over 94,000 students.
Adjusted Earnings Per Share (EPS)
Adjusted EPS surged by 28% to $1.92, driven by expanded adjusted EBITDA margin and increased revenue.
Chamberlain University Performance
Enrollment rose 6.8% to over 40,000 students, with the BSN Online program surpassing 3,000 students.
Walden University Achievement
Enrollment increased by 13.5% to 48,500 students, with a significant boost from the 'Get the W' campaign and digital innovations.
Medical and Veterinary Segment Growth
Enrollment increased by 1.2%, with a high first-time residency attainment rate of over 95% at medical schools.
Strong Financial Position
Completed a $300 million share repurchase program and announced a new $150 million program through May 2028.
Negative Updates
Medical and Veterinary Segment Margin Decline
Adjusted EBITDA declined by 15.3%, with a margin decrease of 540 basis points due to cost structures and long-term growth investments.
Company Guidance
During the third quarter of fiscal year 2025, Adtalem Global Education reported a significant 13% increase in revenue, reaching $466 million, alongside a total enrollment growth of 9.8% year-over-year, with over 94,000 students attending Adtalem institutions. Adjusted EBITDA margin expanded by 150 basis points, driving a 28% rise in adjusted earnings per share to $1.92. Chamberlain University, with over 40,000 students, saw a 6.8% enrollment increase, while Walden University experienced a remarkable 13.5% increase, reaching 48,500 students. In the Medical and Veterinary segment, enrollment edged up by 1.2%. Based on this performance, Adtalem raised its 2025 guidance, now anticipating revenue between $1.76 billion and $1.775 billion, and adjusted EPS ranging from $6.40 to $6.60. Additionally, the company completed a $300 million share repurchase program and announced a new $150 million program through May 2028.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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 Price113.83
Price Trends
50DMA
123.88
Negative
100DMA
114.31
Negative
200DMA
102.71
Positive
Market Momentum
MACD
-2.46
Positive
RSI
34.24
Neutral
STOCH
31.17
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 Risk Analysis

Adtalem Global Education disclosed 46 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$4.79B21.1929.85%6.31%11.24%
76
Outperform
$4.14B19.1016.62%13.10%127.72%
72
Outperform
$4.01B6.4414.87%0.78%5.91%137.49%
71
Outperform
$1.86B12.5616.54%1.83%6.35%0.35%
69
Neutral
$1.89B16.796.86%3.06%5.72%11.02%
68
Neutral
$3.43B12.2731.14%1.26%140.30%
63
Neutral
$17.26B10.39-8.50%3.06%1.63%-25.95%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ATGE
Adtalem Global Education
113.83
35.59
45.49%
PRDO
Perdoceo Education
28.39
3.63
14.66%
LOPE
Grand Canyon Education
167.19
11.89
7.66%
STRA
Strategic Education
78.90
-38.77
-32.95%
GHC
Graham Holdings
914.53
106.05
13.12%
LAUR
Laureate Education
23.04
7.47
47.98%

Adtalem Global Education Corporate Events

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.

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.

Stock BuybackBusiness Operations and Strategy
Adtalem Announces New $150M Share Repurchase Program
Positive
May 6, 2025

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.

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.Date of analysis: Jul 09, 2025