Covista (CVSA) AI Stock Analysis

• Market Cap: $3.68B
• Dividend Yield: N/A
• Average Volume (3M): 410.89K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.77
• Revenue Growth: 12.24%
• EPS Growth: 52.97%
• Country: US
• Employees: 10,371
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Personal Products & Services
• EPS (TTM): 2.43
• Shares Outstanding: 34,508,522
• 10 Day Avg. Volume: 344,846
• 30 Day Avg. Volume: 410,894
• 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: 1.18
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 4.02
• Enterprise Value/Ebitda: 10.15
• 1Y Price Target: $161.00
• Price Target Upside: 50.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 7.94
• Revenue Forecast (FY): $1.93B

• Rating: 73 Outperform
• Price Target: $111.00 ▲(4.09% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is supported mainly by strong financial performance (high margins and solid free cash flow) and a constructive earnings update (raised EPS guidance and continued operational momentum). Offsetting factors include weaker technical trend signals (below key moving averages and negative MACD) and only moderate valuation support based on the provided P/E.

Positive Factors

Strong profitability & margins

Sustained high gross and operating margins indicate durable pricing power and efficient cost structure across programs. Healthy margins support reinvestment, cushion against enrollment cycles, and underpin consistent earnings generation and return on equity over the medium term.

Robust free cash flow generation

Strong operating cash and high free‑cash‑flow conversion provide structural funding for buybacks, debt reduction, and strategic investments. Reliable FCF supports capital allocation flexibility and resilience versus cyclical enrollments or temporary working capital swings.

Refinanced debt, lower interest costs

Extending maturities and cutting margins materially reduces near‑term refinancing risk and recurring interest expense. The redemption of secured notes simplifies the capital structure and improves medium‑term financial flexibility for investment or further deleveraging.

Negative Factors

Chamberlain enrollment & profit pressure

Weakness at Chamberlain, a major revenue contributor, creates structural downside risk: lower enrollments and margin compression reduce consolidated earnings power and may require sustained marketing or program investment, delaying recovery and weighing on medium‑term profitability.

Reliance on supplemental lending partners

Dependence on third‑party lending to support student affordability creates execution and regulatory exposure. If supplemental lending is delayed or constrained, enrollment conversion and cash collections could be impaired, making revenue sensitive to external financing availability.

Slowing revenue growth with material debt

Top‑line deceleration reduces margin expansion visibility and pressure tests return assumptions. Although leverage is improving, absolute debt levels remain meaningful; slower growth combined with material debt increases sensitivity to adverse enrollment or funding shocks over the medium term.

Covista Business Overview & Revenue Model

Company Description

Adtalem Global Education, Inc. engages in the provision of post-secondary education. It operates through the following 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. The Walden segment covers online certificates, bachelor's, master's, and doctoral degrees, including those in nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice. The Medical and Veterinary segment includes degree and non-degree programs in the medical and veterinary postsecondary education industry. The company was founded by Dennis J. Keller and Ronald L. Taylor in 1973 and is headquartered in Chicago, IL.

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.

Covista Financial Statement Overview

Summary

Strong profitability and margins (TTM gross margin ~58.5%, operating margin ~19.7%, net margin ~13.7%) and robust free cash flow generation (~$368M TTM; ~85% of net income). Balance sheet leverage is manageable and improving (debt-to-equity ~0.53), but debt remains material and revenue growth has decelerated (TTM ~3.0% vs higher prior-year growth).

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	TTM	Jun 2025	Jun 2024	Jun 2022	Jun 2020	Jun 2019
Income Statement
Total Revenue	1.89B	1.79B	1.58B	1.45B	906.90M	1.05B
Gross Profit	1.08B	1.02B	886.10M	774.10M	460.02M	567.84M
EBITDA	428.91M	427.31M	346.96M	377.42M	241.05M	265.51M
Net Income	253.25M	232.68M	136.78M	96.93M	76.91M	202.23M
Balance Sheet
Total Assets	2.61B	2.75B	2.74B	2.81B	3.08B	2.23B
Cash, Cash Equivalents and Short-Term Investments	56.28M	199.60M	219.31M	272.19M	476.38M	500.52M
Total Debt	729.55M	774.00M	847.85M	896.19M	1.30B	527.19M
Total Liabilities	1.24B	1.32B	1.37B	1.35B	1.78B	915.41M
Stockholders Equity	1.38B	1.43B	1.37B	1.46B	1.30B	1.31B
Cash Flow
Free Cash Flow	368.01M	287.57M	246.88M	165.90M	152.32M	68.09M
Operating Cash Flow	427.89M	337.90M	295.77M	191.91M	192.20M	107.69M
Investing Cash Flow	-57.35M	-41.92M	-47.85M	23.74M	-56.69M	382.52M
Financing Cash Flow	-507.32M	-316.02M	-301.80M	-288.51M	676.47M	-256.11M

Covista Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 106.64 is above the 20-day moving average (MA) of 100.76, above the 50-day MA of 105.82, and below the 200-day MA of 117.78, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 59.89 is Neutral, neither overbought nor oversold. The STOCH value of 87.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVSA.

Covista Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	85 Outperform	$2.19B	11.89	16.30%	1.88%	24.23%	17.56%
STRA	75 Outperform	$1.83B	14.05	7.65%	2.99%	3.74%	-8.40%
LAUR	74 Outperform	$4.89B	17.67	26.41%	―	2.01%	-13.82%
CVSA	73 Outperform	$3.68B	12.32	17.76%	―	12.24%	52.97%
LOPE	73 Outperform	$4.55B	21.44	28.22%	―	7.05%	-2.63%
GHC	64 Neutral	$4.70B	16.28	6.53%	0.65%	4.13%	228.37%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Covista Corporate Events

Covista Refinances Debt with New Seven-Year Term Loans

On March 2, 2026, Covista Inc. amended its existing credit agreement with a syndicate of lenders led by Morgan Stanley Senior Funding, Inc., incurring new term loans totaling $510 million that mature on March 2, 2033, and lowering its term loan interest rate margins by 0.50%. The new loans, carrying interest based on Term SOFR plus 2.25% or an alternate base rate plus 1.25%, were used to fully refinance the prior term loans and to redeem in full Covista’s 5.50% Senior Secured Notes due 2028, simplifying the company’s debt structure and potentially reducing its ongoing interest expense.

On February 13, 2026, the trustee for Covista’s 5.50% Senior Secured Notes issued a conditional redemption notice, and on the March 2, 2026 redemption date, Covista deposited funds sufficient to redeem all $404.95 million of outstanding principal at par plus accrued interest. With the redemption payment made and the indenture fully satisfied and discharged, Covista and its subsidiary guarantors have no further obligations under the notes, marking a completed transition to the amended term loan financing and a cleaner balance sheet for stakeholders.

The most recent analyst rating on (CVSA) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Covista stock, see the CVSA Stock Forecast page.