Adtalem Global Education, Inc. (ATGE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Life Time Group Holdings, Inc.

Stride, Inc.

Graham Holdings Co.

Adtalem Global Education, Inc.

Strategic Education, Inc.

UniFirst Corp.

Driven Brands Holdings, Inc.

Global Business Travel Group, Inc.

TripAdvisor, Inc.

Sonder Holdings, Inc.

Peloton Interactive, Inc.

Why is Adtalem Global Education, Inc. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.93 times

Poor long term growth as Net Sales has grown by an annual rate of 11.19% and Operating profit at 15.79% over the last 5 years

The company has declared Positive results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 337.9 MM
ROCE(HY) Highest at 16.6%
RAW MATERIAL COST(Y) Fallen by -2.67% (YoY)

With ROCE of 19.10%, it has a fair valuation with a 5.07 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 4.84%, its profits have risen by 48.8% ; the PEG ratio of the company is 0.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Adtalem Global Education, Inc. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Adtalem Global Education, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Adtalem Global Education, Inc.

11.07%

0.89

49.84%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.78%

EBIT Growth (5y)

13.07%

EBIT to Interest (avg)

5.36

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.82

Tax Ratio

19.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

98.89%

ROCE (avg)

14.14%

ROE (avg)

11.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.06

EV to EBIT

19.81

EV to EBITDA

16.12

EV to Capital Employed

4.04

EV to Sales

3.94

PEG Ratio

1.23

Dividend Yield

ROCE (Latest)

20.37%

ROE (Latest)

18.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 427.89 MM

ROCE(HY)

Highest at 17.92%

INTEREST COVERAGE RATIO(Q)

Highest at 1,246.89

RAW MATERIAL COST(Y)

Fallen by -1.47% (YoY

NET SALES(Q)

Highest at USD 503.38 MM

OPERATING PROFIT(Q)

Highest at USD 136.12 MM

OPERATING PROFIT MARGIN(Q)

Highest at 27.04 %

PRE-TAX PROFIT(Q)

Highest at USD 105.96 MM

NET PROFIT(Q)

Highest at USD 79.2 MM

EPS(Q)

Highest at USD 2.1

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at USD 352.12 MM

Here's what is working for Adtalem Global Education, Inc.

Operating Cash Flow

Highest at USD 427.89 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 1,246.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 503.38 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 136.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 27.04 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 105.96 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 79.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -1.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Adtalem Global Education, Inc.

Cash and Eqv

Lowest at USD 352.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents