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Covista
(NYSE:CVSA)
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Rating:79Outperform
Price Target:
$137.00
▲(16.19% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial performance and a constructive earnings-call outlook (raised guidance, margin expansion expectations, and solid cash generation). Technicals are supportive with an established uptrend, but overbought signals temper the near-term setup. Valuation appears reasonable on P/E, though no dividend yield data is available to add support.
Positive Factors
High operating margins
Covista’s current margin profile reflects durable unit economics from scalable online and campus programs. Sustained high gross and operating margins provide structural operating leverage, insulating profitability as revenue grows and enabling reinvestment in programs and technology over the medium term.
Negative Factors
Free-cash-flow inconsistency
Although current FCF is positive and sizable, historical volatility and recent negative FCF growth reduce predictability of internal funding. That inconsistency can complicate multi-year planning for campus rollouts, strategic investments and debt repayment pacing, increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High operating margins
Covista’s current margin profile reflects durable unit economics from scalable online and campus programs. Sustained high gross and operating margins provide structural operating leverage, insulating profitability as revenue grows and enabling reinvestment in programs and technology over the medium term.
Read all positive factors
Covista (CVSA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.42B
Dividend YieldN/A
Average Volume (3M)309.50K
Price to Earnings (P/E)18.5
Beta (1Y)0.55
Revenue Growth9.69%
EPS Growth13.32%
CountryUS
Employees10,371
SectorConsumer Defensive
Sector Strength42
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)7.02
Shares Outstanding34,030,888
10 Day Avg. Volume299,505
30 Day Avg. Volume309,500
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)3.29
Price to Sales (P/S)2.64
P/FCF Ratio16.41
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit4.19
Enterprise Value/Ebitda10.63
Forecast
1Y Price Target
$161.67Price Target Upside37.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.89
Revenue Forecast (FY)$2.07B
Covista Business Overview & Revenue Model
Company Description
Adtalem Global Education, Inc. is an enterprise dedicated to providing higher education. The company organizes its operations into three primary divisions: Chamberlain, Walden, and Medical and Veterinary. The Chamberlain segment delivers various d...
How the Company Makes Money
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Covista Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: enrollment growth across institutions, improved margins (when adjusting for a one-week timing shift), raised revenue and EPS guidance, robust free cash flow, balance sheet improvement, share repurchases, campus expansion plans, and technology/AI initiatives. Near-term headwinds include an $18M timing impact at Walden that masked stronger underlying results, modest absolute enrollment improvement at Chamberlain this quarter (0.5%), continued investment-driven CapEx and strategic spending, and an expected higher effective tax rate. Overall, the positives (organic growth, margin expansion excluding timing, raised guidance, cash generation, and clear remediation at Chamberlain) outweigh the transitory and execution-related challenges noted.Positive Updates
Revenue Growth and Raised Guidance
Q3 revenue increased 4.5% year-over-year to $487.0M; excluding a one-week Walden timing shift, revenue would have grown 8.4% YoY. Full-year revenue guidance raised to $1.93B–$1.945B (previously $1.90B–$1.94B), implying 8%–9% growth for FY2026.
Negative Updates
Walden One-Week Academic Calendar Timing Impact
A one-week shift in Walden's academic calendar moved approximately $18M of revenue into Q2 from Q3, materially depressing reported Q3 revenue, adjusted EBITDA and EPS; excluding this timing, results were substantially stronger.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth and Raised Guidance
Q3 revenue increased 4.5% year-over-year to $487.0M; excluding a one-week Walden timing shift, revenue would have grown 8.4% YoY. Full-year revenue guidance raised to $1.93B–$1.945B (previously $1.90B–$1.94B), implying 8%–9% growth for FY2026.
Read all positive updates
Company Guidance
Management raised full‑year revenue guidance to $1.93–$1.945 billion (from $1.90–$1.94B), implying 8–9% revenue growth, and increased adjusted EPS guidance to $7.95–$8.15 (from $7.80–$8.00), implying 19–22% EPS growth versus last year; they also expect to expand FY26 adjusted EBITDA margin by 100 basis points and anticipate an effective tax rate higher than FY25. They flagged Q4 Chamberlain enrollment should be directionally similar to Q3 (Chamberlain Q3 total enrollment +0.5% to 40,767), noted an $18 million one‑week Walden timing shift (excluding which consolidated revenue would have grown 8.4%, consolidated adjusted EBITDA would have been $145.9M and margin 28.9%), and reiterated targeted strategic investments in 4Q. Supporting financial flexibility, trailing 12‑month free cash flow was $336M (+17%), cash and equivalents $147M, net leverage 0.7x, a $510M Term Loan B was refinanced with a 50 bps rate improvement to 2033, and $66M of share repurchases were completed in the quarter.Covista Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
69
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.91B | 1.79B | 1.58B | 1.45B | 1.38B | 906.90M |
| Gross Profit | 1.09B | 1.02B | 886.10M | 774.10M | 651.93M | 460.02M |
| EBITDA | 430.72M | 427.31M | 346.96M | 326.29M | 264.45M | 210.80M |
| Net Income | 234.06M | 232.68M | 136.78M | 96.93M | -162.49M | 76.91M |
Balance Sheet | ||||||
| Total Assets | 2.74B | 2.75B | 2.74B | 2.81B | 3.03B | 3.08B |
| Cash, Cash Equivalents and Short-Term Investments | 148.84M | 199.60M | 219.31M | 272.19M | 346.97M | 476.38M |
| Total Debt | 736.29M | 774.00M | 847.85M | 896.19M | 1.07B | 1.30B |
| Total Liabilities | 1.37B | 1.32B | 1.37B | 1.35B | 1.54B | 1.78B |
| Stockholders Equity | 1.36B | 1.43B | 1.37B | 1.46B | 1.49B | 1.30B |
Cash Flow | ||||||
| Free Cash Flow | 336.28M | 287.57M | 246.88M | 165.90M | -20.45M | 152.32M |
| Operating Cash Flow | 406.15M | 337.90M | 295.77M | 191.91M | 10.60M | 192.20M |
| Investing Cash Flow | -67.54M | -41.92M | -47.85M | 23.74M | -551.80M | -56.69M |
| Financing Cash Flow | -410.96M | -316.02M | -301.80M | -288.51M | -424.48M | 676.47M |
Covista Technical Analysis
Positive
117.91
Price Trends
122.17
Positive
114.45
Positive
115.82
Positive
Market Momentum
1.18
Negative
60.42
Neutral
79.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVSA, the sentiment is Positive. The current price of 117.91 is below the 20-day moving average (MA) of 124.36, below the 50-day MA of 122.17, and above the 200-day MA of 115.82, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 60.42 is Neutral, neither overbought nor oversold. The STOCH value of 79.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVSA.
Covista Risk Analysis
Covista disclosed 45 risk factors in its most recent earnings report. Covista 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
Covista Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.42B | 18.50 | 16.62% | ― | 9.69% | 13.32% | |
78 Outperform | $2.16B | 12.90 | 17.21% | 1.88% | 17.75% | 15.21% | |
77 Outperform | $1.83B | 13.91 | 7.85% | 2.99% | 3.02% | 20.69% | |
70 Outperform | $4.05B | 18.96 | 29.53% | ― | 7.43% | 0.49% | |
68 Neutral | $5.35B | 20.32 | 25.38% | ― | 13.81% | 1.26% | |
65 Neutral | $5.10B | 17.33 | 6.49% | 0.65% | 3.69% | -52.56% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
CVSA
Covista
129.88
8.22
6.76%
PRDO
Perdoceo Education
34.43
4.04
13.28%
LOPE
Grand Canyon Education
152.65
-27.19
-15.12%
STRA
Strategic Education
80.98
2.59
3.31%
GHC
Graham Holdings
1,183.27
276.47
30.49%
LAUR
Laureate Education
38.20
14.21
59.23%
Covista Corporate Events
Business Operations and StrategyExecutive/Board Changes
Covista Launches Investor Newsletter, Highlights Healthcare Talent Strategy
Positive
Apr 9, 2026
On April 9, 2026, Covista released its inaugural investor newsletter, highlighting its role in addressing the U.S. healthcare workforce shortage, especially in rural areas, and its evolution from an education provider into a broader talent platfor...
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.