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1. Company Snapshot

1.a. Company Description

Adtalem Global Education Inc.provides workforce solutions worldwide.It operates through three segments, Chamberlain, Walden, and Medical and Veterinary.


The Chamberlain segment offers degree and non-degree programs in the nursing and health professions postsecondary education industry.This segment operates Chamberlain University.The Walden segment offers online certificates, bachelor's, master's, and doctoral degrees, including nursing, education, counseling, business, psychology, public health, social work and human services, public administration and public policy, and criminal justice.


This segment also operates Walden University.The Medical and Veterinary segment provides degree and non-degree programs in the medical and veterinary postsecondary education industry.This segment operates American University of the Caribbean School of Medicine, Ross University School of Medicine, and Ross University School of Veterinary Medicine.


The company was formerly known as DeVry Education Group Inc.and changed its name to Adtalem Global Education Inc.in May 2017.


Adtalem Global Education Inc.was incorporated in 1987 and is based in Chicago, Illinois.

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1.b. Last Insights on ATGE

Adtalem Global Education's recent performance was negatively impacted by an investigation into securities fraud violations. Despite beating Q1 earnings and revenue estimates with $1.75 per share, exceeding the Zacks Consensus Estimate of $1.57 per share, the company's growth prospects are being scrutinized. A Zacks upgrade to a Buy rating reflects growing optimism about earnings prospects. Additionally, the company accelerated its $150 million share repurchase program, demonstrating confidence in its fundamental strength. However, a law firm's investigation into securities fraud allegations may weigh on investor sentiment.

1.c. Company Highlights

2. Adtalem Global Education's Strong Q1 FY2026 Earnings Beat Expectations

Adtalem Global Education delivered an outstanding start to fiscal year 2026, with total enrollment up 8% year-over-year to 97,000 students. Revenue grew 10.8% to $462.3 million, driven by all three segments, particularly Walden. The company expanded its adjusted EBITDA margins by 100 basis points and delivered adjusted earnings per share of $1.75, a 35.7% increase year-over-year, beating analyst estimates of $1.57. The strong EPS performance was a significant beat, indicating a solid start to the year.

Publication Date: Nov -02

📋 Highlights
  • Total Enrollment & Revenue Growth: 8% YoY increase to 97,000 students and $462.3M revenue, up 10.8%.
  • Chamberlain Performance: 2.2% enrollment growth, $179.2M revenue (+6.7%), but EBITDA down 5.1% from reinvestment.
  • Walden Breakthrough: 13.6% enrollment surge to 52,000+ students, driving $190M revenue (+17.6% YoY).
  • Medical Segment Growth: 2.4% enrollment rise, $93.1M revenue (+5.9% YoY) in Medical & Veterinary programs.
  • Financial Guidance & Strength: Maintains $1.9B–$1.94B revenue and $7.60–$7.90 EPS; $319M free cash flow and $265M cash reserves.

Segment Performance

Chamberlain grew total enrollment by 2.2%, with revenue increasing 6.7% to $179.2 million, driven by growth in enrollments and pricing optimization. However, adjusted EBITDA decreased by 5.1% due to reinvested revenue growth. Walden University achieved record total enrollment of over 52,000 students, up 13.6% year-over-year, with revenue growing 17.6% to $190 million. The Medical and Veterinary segment posted a 2.4% enrollment growth and a 5.9% revenue increase to $93.1 million.

Guidance and Outlook

The company maintains its full-year fiscal 2026 guidance, with revenue expected to be $1.9 billion to $1.94 billion and adjusted earnings per share of $7.60 to $7.90. The guidance assumes softness in Chamberlain's top line in the second and third quarters, attributed to a marketing misstep, not a competitive issue or a trend in post-licensure nursing. Adtalem generated trailing 12-month free cash flow of $319 million and has a strong financial position, with cash and equivalents of $265 million.

Valuation and Growth Prospects

With a P/E Ratio of 14.01 and an EV/EBITDA of 10.07, Adtalem's valuation appears reasonable. Analysts estimate next year's revenue growth at 8.6%, indicating a strong growth trajectory. The company's ROIC of 13.51% and ROE of 17.54% demonstrate its ability to generate returns on capital and equity. The recent partnership with Google Cloud to offer AI credentials to healthcare professionals is expected to drive future growth.

Financial Strength and Shareholder Returns

Adtalem has a strong financial position, with a $500 million revolving credit facility and $265 million in cash and equivalents. The company repurchased $8 million of shares in the first quarter and has $142 million remaining on its $150 million Board-authorized share repurchase program. The company's financial strength and dynamic capital allocation approach enable it to prioritize reinvesting in its institutions to deliver positive student outcomes.

3. NewsRoom

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Wall Street Analysts Predict a 76.62% Upside in Adtalem (ATGE): Here's What You Should Know

Dec -03

Source: zacks.com

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Fisher Asset Management LLC Acquires Shares of 335,605 Adtalem Global Education Inc. $ATGE

Dec -03

Source: defenseworld.net

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Adtalem Global Education Inc. $ATGE Shares Acquired by American Century Companies Inc.

Dec -03

Source: defenseworld.net

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5 School Stocks Leveraging AI, Digital Learning & Healthcare Shortages

Dec -01

Source: zacks.com

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3 Reasons Why Growth Investors Shouldn't Overlook Adtalem (ATGE)

Nov -28

Source: zacks.com

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ATGE vs. LINC: Which Stock Is the Better Value Option?

Nov -19

Source: zacks.com

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Is ADTALEM GBL EDU (ATGE) Outperforming Other Consumer Discretionary Stocks This Year?

Nov -19

Source: zacks.com

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Bailard Inc. Has $543,000 Position in Adtalem Global Education Inc. $ATGE

Nov -15

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.78%)

6. Segments

Chamberlain

Expected Growth: 6.5%

Chamberlain's 6.5% growth is driven by increasing demand for nursing education, strategic campus expansions, and effective student retention strategies. Additionally, the institution's focus on delivering high-quality, patient-centered care education and its strong industry partnerships contribute to its growth momentum.

Walden

Expected Growth: 6.8%

Walden's 6.8% growth is driven by increasing demand for online education, strategic partnerships, and expansion of program offerings. Additionally, investments in digital marketing and student engagement initiatives have contributed to the growth. Furthermore, Walden's focus on healthcare and technology programs, which are in high demand, has also fueled growth.

Medical and Veterinary

Expected Growth: 7.2%

Adtalem Global Education's Medical and Veterinary segment growth of 7.2% is driven by increasing demand for healthcare professionals, aging population, and advancements in veterinary medicine. Additionally, the segment benefits from strategic acquisitions, expanded online program offerings, and strong industry partnerships, further fueling growth.

7. Detailed Products

Chamberlain University

A private nursing and healthcare institution offering degree programs in nursing, healthcare administration, and public health.

Ross University School of Medicine

A private medical school offering a Doctor of Medicine (M.D.) degree program.

Ross University School of Veterinary Medicine

A private veterinary school offering a Doctor of Veterinary Medicine (D.V.M.) degree program.

American University of the Caribbean School of Medicine

A private medical school offering a Doctor of Medicine (M.D.) degree program.

Association of Certified Anti-Money Laundering Specialists (ACAMS) Training

A certification program for anti-money laundering professionals.

8. Adtalem Global Education Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Adtalem Global Education Inc. faces moderate threat from substitutes, as students have alternative options for education and training, but the company's strong brand and reputation help to mitigate this threat.

Bargaining Power Of Customers

Adtalem Global Education Inc. has a diverse student base, which reduces the bargaining power of individual customers, and the company's strong brand and reputation also limit the bargaining power of customers.

Bargaining Power Of Suppliers

Adtalem Global Education Inc. has a diverse supplier base, and the company's scale and reputation give it bargaining power over its suppliers, reducing the threat from suppliers.

Threat Of New Entrants

Adtalem Global Education Inc. faces a high threat from new entrants, as the education industry is attractive and has low barriers to entry, and new entrants could potentially disrupt the market.

Intensity Of Rivalry

Adtalem Global Education Inc. operates in a highly competitive industry, with many established players, and the company faces intense rivalry from other education providers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.08%
Debt Cost 7.76%
Equity Weight 61.92%
Equity Cost 8.54%
WACC 8.24%
Leverage 61.50%

11. Quality Control: Adtalem Global Education Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Graham

A-Score: 6.7/10

Value: 7.4

Growth: 7.3

Quality: 6.7

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Laureate Education

A-Score: 6.5/10

Value: 3.9

Growth: 5.6

Quality: 7.1

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Grand Canyon Education

A-Score: 5.9/10

Value: 3.1

Growth: 6.8

Quality: 8.3

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Stride

A-Score: 5.9/10

Value: 7.4

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Strategic Education

A-Score: 5.8/10

Value: 6.4

Growth: 4.0

Quality: 6.9

Yield: 6.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Adtalem Global Education

A-Score: 5.3/10

Value: 3.7

Growth: 7.4

Quality: 7.0

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

96.11$

Current Price

96.11$

Potential

-0.00%

Expected Cash-Flows