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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 12.10
APOL's Cash to Debt is ranked higher than
69% of the 113 Companies
in the Global Education & Training Services industry.

( Industry Median: 3.14 vs. APOL: 12.10 )
APOL' s 10-Year Cash to Debt Range
Min: 1.13   Max: No Debt
Current: 12.1

Equity to Asset 0.49
APOL's Equity to Asset is ranked higher than
53% of the 112 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.56 vs. APOL: 0.49 )
APOL' s 10-Year Equity to Asset Range
Min: 0.32   Max: 0.75
Current: 0.49

0.32
0.75
Interest Coverage 48.88
APOL's Interest Coverage is ranked higher than
58% of the 85 Companies
in the Global Education & Training Services industry.

( Industry Median: 99.53 vs. APOL: 48.88 )
APOL' s 10-Year Interest Coverage Range
Min: 48.88   Max: 9999.99
Current: 48.88

48.88
9999.99
F-Score: 6
Z-Score: 6.50
M-Score: -2.59
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 11.61
APOL's Operating margin (%) is ranked higher than
76% of the 113 Companies
in the Global Education & Training Services industry.

( Industry Median: 7.86 vs. APOL: 11.61 )
APOL' s 10-Year Operating margin (%) Range
Min: 11.61   Max: 30.99
Current: 11.61

11.61
30.99
Net-margin (%) 6.75
APOL's Net-margin (%) is ranked higher than
68% of the 113 Companies
in the Global Education & Training Services industry.

( Industry Median: 5.34 vs. APOL: 6.75 )
APOL' s 10-Year Net-margin (%) Range
Min: 6.75   Max: 19.01
Current: 6.75

6.75
19.01
ROE (%) 22.24
APOL's ROE (%) is ranked higher than
93% of the 108 Companies
in the Global Education & Training Services industry.

( Industry Median: 7.64 vs. APOL: 22.24 )
APOL' s 10-Year ROE (%) Range
Min: 22.24   Max: 68.64
Current: 22.24

22.24
68.64
ROA (%) 8.29
APOL's ROA (%) is ranked higher than
79% of the 112 Companies
in the Global Education & Training Services industry.

( Industry Median: 5.07 vs. APOL: 8.29 )
APOL' s 10-Year ROA (%) Range
Min: 8.29   Max: 33.39
Current: 8.29

8.29
33.39
ROC (Joel Greenblatt) (%) 90.44
APOL's ROC (Joel Greenblatt) (%) is ranked higher than
86% of the 111 Companies
in the Global Education & Training Services industry.

( Industry Median: 29.20 vs. APOL: 90.44 )
APOL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 90.44   Max: 325.27
Current: 90.44

90.44
325.27
Revenue Growth (%) 0.30
APOL's Revenue Growth (%) is ranked higher than
61% of the 84 Companies
in the Global Education & Training Services industry.

( Industry Median: 2.30 vs. APOL: 0.30 )
APOL' s 10-Year Revenue Growth (%) Range
Min: 0.3   Max: 45.6
Current: 0.3

0.3
45.6
EBITDA Growth (%) -11.60
APOL's EBITDA Growth (%) is ranked higher than
51% of the 61 Companies
in the Global Education & Training Services industry.

( Industry Median: 6.00 vs. APOL: -11.60 )
APOL' s 10-Year EBITDA Growth (%) Range
Min: -11.6   Max: 62.3
Current: -11.6

-11.6
62.3
EPS Growth (%) -16.20
APOL's EPS Growth (%) is ranked higher than
55% of the 55 Companies
in the Global Education & Training Services industry.

( Industry Median: -4.80 vs. APOL: -16.20 )
APOL' s 10-Year EPS Growth (%) Range
Min: -16.2   Max: 73.2
Current: -16.2

-16.2
73.2
» APOL's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

APOL Guru Trades in Q2 2013

Mark Hillman 33,173 sh (New)
Chuck Royce 185,800 sh (New)
John Rogers 1,807,377 sh (+65.69%)
First Pacific Advisors 3,935,100 sh (+36.2%)
FPA Capital Fund 1,673,700 sh (+32.57%)
Joel Greenblatt 702,651 sh (+14.23%)
Jeff Auxier 231,904 sh (+2.95%)
Donald Yacktman 7,629,389 sh (+0.31%)
Yacktman Focused Fund 2,705,000 sh (unchged)
Louis Moore Bacon 200,000 sh (unchged)
Yacktman Fund 3,300,000 sh (unchged)
Ruane Cunniff Sold Out
Sarah Ketterer 1,221,620 sh (-0.38%)
Jeremy Grantham 54,216 sh (-31.87%)
Paul Tudor Jones 27,500 sh (-40.22%)
Steven Cohen 66,066 sh (-44.82%)
Jim Simons 352,125 sh (-48.74%)
Richard Pzena 1,082,185 sh (-80.05%)
» More
Q3 2013

APOL Guru Trades in Q3 2013

Tom Gayner 105,000 sh (New)
Murray Stahl 16,113 sh (New)
Sarah Ketterer 1,741,920 sh (+42.59%)
Chuck Royce 242,000 sh (+30.25%)
FPA Capital Fund 1,780,700 sh (+6.39%)
First Pacific Advisors 4,024,700 sh (+2.28%)
John Rogers 1,821,287 sh (+0.77%)
Richard Pzena 1,089,335 sh (+0.66%)
Yacktman Focused Fund 2,705,000 sh (unchged)
Yacktman Fund 3,300,000 sh (unchged)
Jeff Auxier 231,904 sh (unchged)
Jim Simons Sold Out
Steven Cohen Sold Out
Paul Tudor Jones Sold Out
Mark Hillman Sold Out
Donald Yacktman 7,603,130 sh (-0.34%)
Joel Greenblatt 666,958 sh (-5.08%)
Jeremy Grantham 42,900 sh (-20.87%)
» More
Q4 2013

APOL Guru Trades in Q4 2013

Jim Simons 213,725 sh (New)
Paul Tudor Jones 416,435 sh (New)
Charles Brandes 7,400 sh (New)
Steven Cohen 65,020 sh (New)
Murray Stahl 19,767 sh (+22.68%)
Sarah Ketterer 2,123,686 sh (+21.92%)
Yacktman Fund 3,300,000 sh (unchged)
Yacktman Focused Fund 2,705,000 sh (unchged)
FPA Capital Fund 1,780,700 sh (unchged)
Tom Gayner 105,000 sh (unchged)
Richard Pzena Sold Out
Jeff Auxier 229,854 sh (-0.88%)
Donald Yacktman 7,459,620 sh (-1.89%)
Chuck Royce 232,500 sh (-3.93%)
First Pacific Advisors 3,795,900 sh (-5.68%)
Joel Greenblatt 567,396 sh (-14.93%)
John Rogers 1,233,272 sh (-32.29%)
Jeremy Grantham 21,720 sh (-49.37%)
» More
Q1 2014

APOL Guru Trades in Q1 2014

FPA Capital Fund 1,787,100 sh (+0.36%)
Yacktman Fund 1,875,000 sh (-43.18%)
Yacktman Focused Fund 1,300,000 sh (-51.94%)
» More
» Details

Insider Trades

Latest Guru Trades with APOL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Yacktman Focused Fund 2014-03-31 Reduce -51.94%0.41%$26.89 - $35.24 $ 27.42-15%1300000
Yacktman Fund 2014-03-31 Reduce -43.18%0.35%$26.89 - $35.24 $ 27.42-15%1875000
Charles Brandes 2013-12-31 New Buy$19.94 - $28.25 $ 27.4210%7400
FPA Capital Fund 2013-09-30 Add 6.39%0.28%$17.53 - $21.409 $ 27.4242%1780700
Tom Gayner 2013-09-30 New Buy0.08%$17.53 - $21.409 $ 27.4242%105000
FPA Capital Fund 2013-06-30 Add 32.57%0.91%$16.65 - $22.24 $ 27.4244%1673700
Ruane Cunniff 2013-06-30 Sold Out 0.1%$16.65 - $22.24 $ 27.4244%0
FPA Capital Fund 2013-03-31 New Buy2.57%$16.2 - $22.03 $ 27.4245%1262500
Ray Dalio 2013-03-31 Sold Out 0.39%$16.2 - $22.03 $ 27.4245%0
Joel Greenblatt 2013-03-31 Add 39.61%0.15%$16.2 - $22.03 $ 27.4245%615139
Ruane Cunniff 2013-03-31 Reduce -50.06%0.14%$16.2 - $22.03 $ 27.4245%900000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Apollo Education Group Inc

FPA Capital Comments on Apollo - Jul 29, 2013

Apollo (APOL) is a new position in the portfolio that was initiated below $20 share earlier this year in the first quarter and after the stock declined dramatically from over $80 a few years ago. As the stock further declined from the $19 level to close to $16, we added to our position.

As we mentioned in our last letter, our investment thesis in APOL is similar but not identical DeVry. That is, we believe the efficient delivery of quality education to people who did not attend a traditional four-year college is essential for those students and workers to enhance their knowledge and compete in today's domestic and global economy. People with college degrees experience lower unemployment rates and get paid more than those with just a high school diploma. According to U.S. Census Bureau, there are approximately198 million people in the U.S. over the age of 25. 31% of these people have high school as their highest educational attainment and another 17% have some college but no degree. Hence, over 95 million people might be interested in obtaining a college degree. Many for-profit schools offer online programs, night/weekend classes, and convenient locations. All of which help working adults who seek flexible schedules earn a degree.

APOL's earnings peaked a couple of years ago at a shade over $4 per share. We believe the company's EPS could decline substantially over the next year or two, despite the consensus expectations that APOL will earn roughly $3 this year and $2.50 next fiscal year. We further believe APOL's normalized earnings, once the cost cutting efforts are complete, could be higher than street estimates. Assuming the company achieves that level of earnings and that the markets apply a reasonable earnings valuation to the stock price, we believe that the stock has good growth potential. The company's recently released results for its fiscal third quarter provide evidence that management is rationalizing the company's cost structure to generate good free cash flow for shareholders, despite the current challenging enrollment issues. In addition, the balance sheet remains pristine with more than $7 in net cash per share.

From FPA Capital's second quarter 2013 commentary.
Check out latest stock trades

Yacktman Funds Comments on Apollo Group - Mar 13, 2013

Our investment in Apollo Group (APOL) declined as the business is facing a large number of issues, including enrollment pressures and competitive challenges from other higher education institutions. We think, over the long term, the company's competitive position is solid and the valuation is compelling.

From Yacktman Funds 2012 annual letter.


Check out Donald Yacktman latest stock trades

Top Ranked Articles about Apollo Education Group Inc

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Managed by Ruane, Cunniff & Goldfarb, the Sequoia Fund's average annual total return as of June 30, 2013 is 14.65%, year-to-date, compared to the S&P 500’s at 13.83%. Sequoia Fund’s average annual total return over one year is 25.98%, compared to the S&P 500’s 20.60%. The recently updated portfolio of Ruane, Cunniff & Goldfarb Inc. lists 148 stocks, 13 of them new, with a total value of $15.53 billion and a quarter-over-quarter turnover of 1%. The portfolio’s top sectors are weighted as health care at 26.8%, financial services at 22.4% and consumer cyclical at 21.4%. Read more...
FPA Capital Comments on Apollo
Apollo (APOL) is a new position in the portfolio that was initiated below $20 share earlier this year in the first quarter and after the stock declined dramatically from over $80 a few years ago. As the stock further declined from the $19 level to close to $16, we added to our position. Read more...
Update from FPA Capital - Seven Changes to Portfolio
As of June 30, 2013, the updated portfolio of First Pacific Advisors (FPA) Capital Fund, managed by Dennis Bryan and Rikard Ekstrand, lists 27 stocks, none of them new, with a total value of $803 million and a quarter-over-quarter turnover of 3%. According to GuruFocus research, FPA Capital added or reduced the following holdings as of the second quarter of 2013. Here are the details of the trades, as of June 30, 2013. Read more...
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This is the announcement of the results for Value Idea Contest for the submissions we received in May. With this contest you will win $1,000 if your submission qualifies and doubles in 12 months from the date of submission. There is no limit on the number of prizes to be awarded. Read more...
Apollo Group: This Unloved Company Is Significantly Undervalued
Apollo Group Inc. (APOL) provides online and on-premise educational programs and related services to undergraduate, masters and doctoral students. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 14.60
APOL's P/E(ttm) is ranked higher than
66% of the 86 Companies
in the Global Education & Training Services industry.

( Industry Median: 18.40 vs. APOL: 14.60 )
APOL' s 10-Year P/E(ttm) Range
Min: 5.38   Max: 63.1
Current: 14.6

5.38
63.1
P/B 2.60
APOL's P/B is ranked lower than
67% of the 105 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.73 vs. APOL: 2.60 )
APOL' s 10-Year P/B Range
Min: 1.78   Max: 23.19
Current: 2.6

1.78
23.19
P/S 0.94
APOL's P/S is ranked higher than
57% of the 115 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.00 vs. APOL: 0.94 )
APOL' s 10-Year P/S Range
Min: 0.48   Max: 11.86
Current: 0.94

0.48
11.86
PFCF 11.40
APOL's PFCF is ranked higher than
65% of the 57 Companies
in the Global Education & Training Services industry.

( Industry Median: 15.40 vs. APOL: 11.40 )
APOL' s 10-Year PFCF Range
Min: 4.96   Max: 53.88
Current: 11.4

4.96
53.88
EV-to-EBIT 6.50
APOL's EV-to-EBIT is ranked higher than
84% of the 99 Companies
in the Global Education & Training Services industry.

( Industry Median: 11.80 vs. APOL: 6.50 )
APOL' s 10-Year EV-to-EBIT Range
Min: 2   Max: 35
Current: 6.5

2
35
PEG 1.40
APOL's PEG is ranked higher than
60% of the 50 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.40 vs. APOL: 1.40 )
APOL' s 10-Year PEG Range
Min: 0.43   Max: 23.03
Current: 1.4

0.43
23.03
Shiller P/E 8.10
APOL's Shiller P/E is ranked higher than
83% of the 48 Companies
in the Global Education & Training Services industry.

( Industry Median: 19.80 vs. APOL: 8.10 )
APOL' s 10-Year Shiller P/E Range
Min: 4.65   Max: 126.2
Current: 8.1

4.65
126.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 3.20
APOL's Price/Tangible Book is ranked lower than
60% of the 98 Companies
in the Global Education & Training Services industry.

( Industry Median: 2.30 vs. APOL: 3.20 )
APOL' s 10-Year Price/Tangible Book Range
Min: 2.39   Max: 23.81
Current: 3.2

2.39
23.81
Price/DCF (Projected) 0.40
APOL's Price/DCF (Projected) is ranked higher than
86% of the 59 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.90 vs. APOL: 0.40 )
APOL' s 10-Year Price/DCF (Projected) Range
Min: 0.19   Max: 5.1
Current: 0.4

0.19
5.1
Price/Median PS Value 0.30
APOL's Price/Median PS Value is ranked higher than
88% of the 110 Companies
in the Global Education & Training Services industry.

( Industry Median: 0.90 vs. APOL: 0.30 )
APOL' s 10-Year Price/Median PS Value Range
Min: 0.16   Max: 3.55
Current: 0.3

0.16
3.55
Price/Graham Number 1.40
APOL's Price/Graham Number is ranked higher than
54% of the 76 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.50 vs. APOL: 1.40 )
APOL' s 10-Year Price/Graham Number Range
Min: 0.79   Max: 8.69
Current: 1.4

0.79
8.69
Earnings Yield (Greenblatt) 15.50
APOL's Earnings Yield (Greenblatt) is ranked higher than
79% of the 99 Companies
in the Global Education & Training Services industry.

( Industry Median: 9.00 vs. APOL: 15.50 )
APOL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.9   Max: 51.1
Current: 15.5

2.9
51.1
Forward Rate of Return (Yacktman) 7.70
APOL's Forward Rate of Return (Yacktman) is ranked higher than
64% of the 75 Companies
in the Global Education & Training Services industry.

( Industry Median: 8.75 vs. APOL: 7.70 )
APOL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 6.9   Max: 41.3
Current: 7.7

6.9
41.3

Business Description

Industry: Education » Education & Training Services
Compare:ESI, EDU, WPO, GPX, DV » details
Traded in other countries:APO.Germany
Apollo Group, Inc. was incorporated in Arizona in 1981. The company offers distinctive educational programs and services both online and on-campus at the undergraduate, master's and doctoral levels principally through these wholly-owned educational subsidiaries: The University of Phoenix, Inc. ('University of Phoenix'); Institute for Professional Development ('IPD'); and The College for Financial Planning Institutes Corporation ('CFFP'). On September 12, 2011, it acquired all of the outstanding stock of Carnegie Learning, Inc. ('Carnegie Learning'), a publisher of research-based math curricula and adaptive learning software. The acquisition allows it to accelerate its efforts to incorporate adaptive learning into its academic platform and to provide tools which it believes will help raise student achievement levels, and support improved retention and graduation rates at University of Phoenix. It's University of Phoenix - It has been accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools since 1978 and holds other programmatic accreditations. University of Phoenix offers associate's, bachelor's, master's and doctoral degrees in a variety of program areas. University of Phoenix offers its educational programs worldwide through its online education delivery system and at its campus locations and learning centers throughout the United States, including the Commonwealth of Puerto Rico. University of Phoenix's online programs are designed to provide consistency with University of Phoenix's on-campus programs, which enhances University of Phoenix's ability to expand into new markets while maintaining academic quality. University of Phoenix represented 91% of its total consolidated net revenue and more than 100% of its operating income in fiscal year 2012. IPD - It provides program development, administration and management consulting services to private colleges and universities ('IPD Client Institutions') to establish or expand their programs for working learners. These services typically include degree program design, curriculum development, market research, student admissions services, accounting and administrative services. CFFP - It has been accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools since 1994. CFFP provides financial services education programs, including a Master of Science in three majors, and certification programs in retirement, asset management and other financial planning areas. CFFP offers these programs online. BPP - It is headquartered in London, England and offers professional training through schools located in the U.K., a European network of BPP offices and the sale of books and other publications globally. Western International University - It has been accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools since 1984. Western International University offers associate

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