Adtalem Global Education (ATGE) AI Stock Analysis

• Market Cap: $4.38B
• Dividend Yield: N/A
• Average Volume (3M): 541.35K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.73
• Revenue Growth: 13.10%
• EPS Growth: 127.72%
• Country: US
• Employees: 4,624
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Education & Training Services
• EPS (TTM): 1.92
• Shares Outstanding: 35,927,963
• 10 Day Avg. Volume: 402,096
• 30 Day Avg. Volume: 541,347
• 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: $135.67
• Price Target Upside: 11.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: $147.00 ▲(20.65%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

Management raised FY2025E guidance once again.

Financial Performance

Strong enrollment growth and margin expansion helped ATGE beat expectations.

Share Repurchase

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

Negative Factors

Revenue

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.

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
	EBIT
337.39M	217.05M	168.17M	163.11M	161.48M	142.26M
	EBITDA
406.95M	335.56M	326.29M	264.45M	210.80M	345.70M
	Net Income Common Stockholders
232.27M	136.78M	93.36M	-29.83M	70.03M	243.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
219.02M	219.31M	273.69M	346.97M	494.61M	509.48M
	Total Assets
2.79B	2.74B	2.81B	3.03B	3.05B	2.23B
	Total Debt
780.53M	847.85M	896.19M	1.07B	1.29B	516.79M
	Net Debt
561.51M	628.55M	622.50M	719.76M	799.28M	16.27M
	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: Positive
• Last Price: 121.84
• 50DMA: Positive
• 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 Positive. The current price of 121.84 is below the 20-day moving average (MA) of 128.28, above the 50-day MA of 117.37, and above the 200-day MA of 95.92, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 46.74 is Neutral, neither overbought nor oversold. The STOCH value of 20.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATGE.

Adtalem Global Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	82 Outperform	$5.25B	23.23	29.85%	―	6.31%	11.24%
ATGE	80 Outperform	$4.38B	20.22	16.62%	―	13.10%	127.72%
PRDO	77 Outperform	$2.09B	14.09	16.54%	1.63%	6.35%	0.35%
LAUR	74 Outperform	$3.29B	11.78	31.14%	―	1.26%	140.30%
STRA	73 Outperform	$2.03B	17.98	6.86%	2.86%	5.72%	11.02%
GHC	73 Outperform	$4.09B	6.58	14.87%	0.77%	5.91%	137.49%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

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.