Adtalem Global Education Inc's Meteoric Rise: Unpacking the 13% Surge in Just 3 Months

Adtalem Global Education Inc (ATGE, Financial), an American for-profit educational company, has seen a significant surge in its stock price over the past three months. With a current market cap of $1.99 billion and a price of $48.61, the company's stock has gained 11.00% over the past week and 12.53% over the past three months. According to the GF Value, a measure defined by GuruFocus.com that calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is currently fairly valued. However, three months ago, the stock was significantly undervalued, with a GF Value of $49.81 compared to its current GF Value of $48.74.

Company Overview

Adtalem Global Education Inc operates various university and educational programs, running eight colleges and universities that specialize in business, medicine, education, and nursing degree programs. With over 90 campuses and online courses that offer associate, bachelor, and postgraduate degrees, the company primarily derives its revenue from student enrollment fees using federal financial aid programs such as Pell Fund grants. 1717923537689309184.png

Profitability Analysis

Adtalem Global Education Inc has a Profitability Rank of 8/10, indicating a high level of profitability. The company's Operating Margin of 14.90% is better than 67.97% of companies in the industry. Its ROE of 6.30% and ROA of 3.25% are better than 51.84% and 55.04% of companies in the industry, respectively. The company's ROIC of 7.54% is better than 67.44% of companies in the industry. Over the past 10 years, the company has been profitable for 8 years, which is better than 73.22% of companies in the industry. 1717923555129225216.png

Growth Prospects

The company has a Growth Rank of 8/10, indicating a high level of growth. Its 3-year and 5-year Revenue Growth Rates per Share are 25.70% and 16.20% respectively, both of which are better than the majority of companies in the industry. The company's future 3-year to 5-year total Revenue Growth Rate estimate is 3.90%, and its EPS without NRI Growth Rate estimate is 15.00%, both of which are better than a significant portion of companies in the industry. 1717923573139566592.png

Major Stockholders

The top three holders of the company's stock are John Rogers (Trades, Portfolio) with an 8.72% share, HOTCHKIS & WILEY with a 2.13% share, and Ray Dalio (Trades, Portfolio) with a 0.47% share.

Competitive Landscape

The company's main competitors are Strategic Education Inc (STRA, Financial) with a market cap of $1.96 billion, Stride Inc (LRN, Financial) with a market cap of $2.33 billion, and Afya Ltd (AFYA, Financial) with a market cap of $1.52 billion.

Conclusion

In conclusion, Adtalem Global Education Inc's stock performance, profitability, growth, holders, and competitors all indicate a promising future for the company. With a high level of profitability and growth, and a fair valuation, the company is well-positioned to continue its upward trajectory in the stock market.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.