Adtalem Global Education Inc. Fundamental Analysis (NYSE: ATGE)
Adtalem Global Education Inc. Fundamental Analysis (NYSE: ATGE)
Adtalem Global Education Inc. (NYSE: ATGE) shows strong financial fundamentals with a PE ratio of 14.51, profit margin of 21.86%, and ROE of 31.22%. The company generates $2.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.9/100 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
ExcellentATGE demonstrates superior asset utilization.
Valuation Score
ModerateATGE shows balanced valuation metrics.
Growth Score
ModerateATGE shows steady but slowing expansion.
Financial Health Score
ModerateATGE shows balanced financial health with some risks.
Profitability Score
ExcellentATGE achieves industry-leading margins.
Key Financial Metrics
Is ATGE Expensive or Cheap?
P/E Ratio
ATGE trades at 14.51 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ATGE's PEG of 2.08 indicates potential overvaluation.
Price to Book
The market values Adtalem Global Education Inc. at 2.55 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.03 times EBITDA. This signals the market has high growth expectations.
How Well Does ATGE Make Money?
Net Profit Margin
For every $100 in sales, Adtalem Global Education Inc. keeps $21.86 as profit after all expenses.
Operating Margin
Core operations generate 19.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.22 in profit for every $100 of shareholder equity.
ROA
Adtalem Global Education Inc. generates $14.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adtalem Global Education Inc. generates strong operating cash flow of $856.62M, reflecting robust business health.
Free Cash Flow
Adtalem Global Education Inc. generates strong free cash flow of $695.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.16 in free cash annually.
FCF Yield
ATGE converts 16.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How ATGE Stacks Against Its Sector Peers
| Metric | ATGE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.51 | 22.17 | Better (Cheaper) |
| ROE | 31.22% | 636.00% | Weak |
| Net Margin | 21.86% | -2381.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.81 | 2.29 | Weak Liquidity |
| ROA | 14.96% | 296.00% | 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
N/A
Industry Style: Defensive, Dividend, Low Volatility
EPS CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility
FCF CAGR
N/A
Industry Style: Defensive, Dividend, Low Volatility