Covista (CVSA) AI Stock Analysis

• Market Cap: $3.44B
• Dividend Yield: N/A
• Average Volume (3M): 448.93K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.81
• 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: 373,723
• 30 Day Avg. Volume: 448,929
• 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: 1.24
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 3.88
• Enterprise Value/Ebitda: 9.37
• 1Y Price Target: $161.00
• Price Target Upside: 63.39% 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: $110.00 ▲(11.63% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong fundamentals (healthy margins, robust free cash flow, and improving leverage) and a favorable earnings outlook with raised EPS guidance. These positives are tempered by weak technical trends (trading below key moving averages with negative MACD) and operational watch items highlighted on the call, including Chamberlain softness and near-term margin volatility.

Positive Factors

Strong free cash flow generation

Sustained FCF (~$368M TTM) and high conversion (~85% of net income) provide durable internal funding for campus investments, digital initiatives, and the large $750M buyback without over-reliance on new debt. Strong cash generation improves financial flexibility for 2–6 months and supports shareholder actions and selective M&A.

High and expanding profitability margins

Robust gross and operating margins indicate durable unit economics in healthcare and online education segments. Margin expansion provides a buffer to fund strategic investments and absorb enrollment cycles, underpinning sustainable earnings power and cash flow over the medium term.

Strategic pivot into healthcare workforce platform

The clear repositioning to a healthcare workforce platform, reinforced by strategic partnerships and long-term targets for faster revenue and EPS growth, materially strengthens market positioning in a structurally tight clinician labor market, creating durable demand for programs and employer-aligned pathways.

Negative Factors

Slowing revenue growth trend

Revenue growth has moderated to roughly 3% TTM from higher prior-year rates, reducing the tailwind for operating leverage. If top-line momentum does not reaccelerate, margin expansion and EPS upside could be constrained, making profitability gains more reliant on cost actions rather than organic growth.

Chamberlain enrollment softness and fall-cycle concentration

Chamberlain's enrollment decline and EBITDA compression expose concentration risk tied to the fall recruitment cycle. Recovery depends on execution and conversion over upcoming cycles; persistent softness would materially pressure consolidated margins and cash flow over the next several quarters.

Reliance on supplemental lending and regulatory execution

Greater dependence on external supplemental lending amid loan cap changes introduces execution and regulatory risk. Delays or unfavorable terms could restrict student financing, depress enrollments or shift timing of cash collections, creating persistent revenue and cash-flow volatility across 2–6 months.

Covista 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.

Covista Financial Statement Overview

Summary

Strong profitability and cash generation underpin the score (TTM gross margin ~58.5%, operating margin ~19.7%, net margin ~13.7%; TTM FCF ~$368M with ~85% of net income). Balance sheet leverage is manageable and improving (debt-to-equity ~0.53), but debt remains material. The key risk is decelerating revenue growth (TTM ~3.0% vs higher growth in prior fiscal years) and periodic operating cash flow lag versus operating profit.

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
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

Covista Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 98.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVSA, the sentiment is Neutral. The current price of 98.54 is below the 20-day moving average (MA) of 101.37, below the 50-day MA of 105.60, and below the 200-day MA of 119.92, indicating a bearish trend. The MACD of -3.20 indicates Positive momentum. The RSI at 44.43 is Neutral, neither overbought nor oversold. The STOCH value of 62.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CVSA.

Covista Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	$2.03B	13.16	16.55%	1.88%	24.23%	17.56%
STRA	77 Outperform	$1.77B	15.58	6.76%	2.99%	3.74%	-8.40%
GHC	75 Outperform	$4.66B	6.39	17.20%	0.65%	4.13%	228.37%
CVSA	73 Outperform	$3.44B	14.67	17.92%	―	12.24%	52.97%
LOPE	73 Outperform	$4.26B	20.32	28.24%	―	7.05%	-2.63%
LAUR	71 Outperform	$4.78B	17.48	26.23%	―	2.01%	-13.82%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Covista Corporate Events

Covista Unveils Purpose at Scale Healthcare Growth Strategy

On February 24, 2026, Covista used its Investor Day to unveil “Purpose at Scale,” a three-year growth strategy starting in fiscal 2027 that builds on its earlier “Growth with Purpose” program to expand capacity, deepen employer workforce pipelines and accelerate AI-enabled curriculum innovation. The company also rebranded its NYSE listing to ticker CVSA that day, signaling its fully focused pivot from a diversified educator into a pure-play healthcare workforce platform.

The company reinforced its technology and market positioning by announcing a partnership with GE Healthcare’s HelloAI unit to advance AI fluency among healthcare students and professionals, and a founding role in the Alliance for Advancing Rural Healthcare with SAIC to bolster rural health systems and workforce pipelines. These moves aim to solidify Covista’s role in addressing the national clinician shortage, particularly in underserved regions, while differentiating it as a tech-forward educator embedded with major healthcare stakeholders.

Covista set long-term financial targets for fiscal 2027–2029, guiding to annual revenue growth rising from 6–8% to 8–11% and adjusted earnings per share growth accelerating from 9–13% to 12–16%, underpinned by disciplined capital allocation and selective M&A, partnerships and share repurchases. At the same time, it reaffirmed its fiscal 2026 outlook for revenue of $1.9 billion to $1.94 billion and adjusted EPS of $7.80 to $8.00, implying mid- to high-single-digit top-line expansion and double-digit profit growth as it invests in campuses and employer-linked programs.

Management framed these initiatives as evidence that the operational discipline built over the past three years—delivering record enrollment, margin expansion and execution—now supports a new phase of scaled growth and shareholder value creation. For investors and healthcare partners, the Investor Day positioned Covista as a critical, financially resilient player in solving the U.S. healthcare labor crisis, with explicit growth benchmarks and new strategic alliances underpinning its long-term narrative.

The most recent analyst rating on (ATGE) stock is a Hold with a $114.00 price target. To see the full list of analyst forecasts on Adtalem Global Education stock, see the ATGE Stock Forecast page.

Covista Inc. Rebrands and Unveils Healthcare Workforce Strategy

On February 5, 2026, Adtalem Global Education formally changed its corporate name to Covista Inc., amending its Delaware charter and bylaws and announcing that its common stock will begin trading on the New York Stock Exchange under the new ticker “CVSA” on February 24, 2026, with existing stock certificates remaining valid. The company framed the rebrand as the culmination of a four-year transformation into a scaled healthcare education platform and released the Covista Care Capacity Monitor, a Gallup-fielded research initiative quantifying the severity of the U.S. healthcare workforce crisis, including widespread staffing shortages, constrained patient capacity, and deep challenges in rural markets. Covista plans to outline updated long-term strategy and growth priorities at an Investor Day on February 24, 2026, signaling an ambition to expand its capacity as a comprehensive talent partner to health systems and to advance a multi-year “Covista Open Doors” commitment aimed at strengthening and diversifying the healthcare workforce pipeline.

The most recent analyst rating on (ATGE) stock is a Hold with a $111.00 price target. To see the full list of analyst forecasts on Adtalem Global Education stock, see the ATGE Stock Forecast page.

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.