Adtalem Global Education Inc.
Adtalem Global Education Inc. Fundamental Analysis
Adtalem Global Education Inc. (ATGE) shows strong financial fundamentals with a PE ratio of 13.83, profit margin of 13.41%, and ROE of 17.76%. The company generates $1.9B in annual revenue with strong year-over-year growth of 12.85%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ATGE's fundamental strength across five key dimensions:
Efficiency Score
WeakATGE struggles to generate sufficient returns from assets.
Valuation Score
ModerateATGE shows balanced valuation metrics.
Growth Score
ExcellentATGE delivers strong and consistent growth momentum.
Financial Health Score
ModerateATGE shows balanced financial health with some risks.
Profitability Score
ModerateATGE maintains healthy but balanced margins.
Key Financial Metrics
Is ATGE Expensive or Cheap?
P/E Ratio
ATGE trades at 13.83 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ATGE's PEG of 11.88 indicates potential overvaluation.
Price to Book
The market values Adtalem Global Education Inc. at 2.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.36 times EBITDA. This is generally considered low.
How Well Does ATGE Make Money?
Net Profit Margin
For every $100 in sales, Adtalem Global Education Inc. keeps $13.41 as profit after all expenses.
Operating Margin
Core operations generate 19.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.76 in profit for every $100 of shareholder equity.
ROA
Adtalem Global Education Inc. generates $9.69 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adtalem Global Education Inc. produces operating cash flow of $435.12M, showing steady but balanced cash generation.
Free Cash Flow
Adtalem Global Education Inc. generates strong free cash flow of $374.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $10.30 in free cash annually.
FCF Yield
ATGE converts 10.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.88
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How ATGE Stacks Against Its Sector Peers
| Metric | ATGE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.83 | 23.01 | Better (Cheaper) |
| ROE | 17.76% | 1228.00% | Weak |
| Net Margin | 13.41% | -4008.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 0.68 | 2.35 | Weak Liquidity |
| ROA | 9.69% | -157547.00% (disorted) | Weak |
ATGE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adtalem Global Education Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
198.64%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
501.97%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
353.99%
Industry Style: Defensive, Dividend, Low Volatility
High Growth