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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 Inc.'s recent performance was driven by solid growth attributes, including a strong Q2 earnings beat, with quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.19 per share. The company's growth prospects have garnered attention, with a 46.8% upside potential indicated by analysts' price targets. Several institutional investors have acquired or increased their stakes, including American Century Companies Inc. and Fisher Asset Management LLC. Additionally, the company has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about its earnings prospects.

1.c. Company Highlights

2. Adtalem Global Education's Strong Q2 FY2026 Earnings Beat Expectations

Adtalem Global Education Inc. reported a robust second quarter fiscal year 2026, with revenue growing 12.4% to $503.4 million, driven by all three segments. The company's adjusted EBITDA margin expanded 290 basis points to 30.8%, resulting in adjusted earnings per share of $2.43, a 34% increase versus last year, beating analyst estimates of $2.19. This strong financial performance was a testament to the company's execution against its strategic roadmap, as noted by Stephen W. Beard, "This quarter's strong performance reflects our execution against our strategic roadmap."

Publication Date: Feb -10

📋 Highlights
  • 10 Consecutive Quarters of Enrollment Growth: Total enrollment grew 6% to 97,000 students.
  • Revenue Growth: Q2 revenue increased 12% to $503 million, driven by all three segments.
  • Adjusted EBITDA Expansion: Adjusted EBITDA rose 23.9% to $154.9 million, with a 30.8% margin (up 290 bps).
  • Walden’s Strong Performance: Revenue surged 27% to $217.6 million, fueled by enrollment growth in education and nursing programs.
  • Guidance Raised: Full-year adjusted EPS guidance raised to $7.80–$8.00 (17–20% growth), with revenue expected at $1.9–$1.94 billion (6–8.5% growth).

Segment Performance

The company's segment results showed varying degrees of growth. Chamberlain reported a 1.6% increase in revenue, driven by pricing optimization, while total student enrollment declined by 1%. Walden continued to be a source of strength, with revenue increasing 27% versus the prior year, driven primarily by strong growth in enrollments. The medical and veterinary segment reported revenue growth of 6.9% versus the prior year.

Guidance and Outlook

Adtalem Global Education Inc. maintained its annual revenue guidance, expecting revenue in the range of $1.9 to $1.94 billion, or approximately 6% to 8.5% growth year over year. The company raised its adjusted EPS guidance to a range of $7.80 to $8.00, or growth of 17% to 20%. Analysts estimate next year's revenue growth at 6.5%, which is slightly higher than the current year's guidance.

Valuation Metrics

With a P/E Ratio of 14.48 and an EV/EBITDA of 9.69, Adtalem Global Education Inc.'s valuation appears reasonable, considering its strong growth prospects. The company's ROE of 17.76% and ROIC of 12.76% indicate efficient capital allocation. The market seems to have priced in a moderate growth trajectory, and the company's ability to exceed expectations could lead to further upside.

3. NewsRoom

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ATGE or LOPE: Which Is the Better Value Stock Right Now?

Feb -10

Source: zacks.com

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

Feb -09

Source: zacks.com

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Federated Hermes Inc. Buys 5,184 Shares of Adtalem Global Education Inc. $ATGE

Feb -07

Source: defenseworld.net

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Renaissance Group LLC Buys Shares of 59,279 Adtalem Global Education Inc. $ATGE

Feb -07

Source: defenseworld.net

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Adtalem Global Education Inc. $ATGE Stake Lifted by Thrivent Financial for Lutherans

Feb -07

Source: defenseworld.net

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Adtalem Rebrands as Covista With Focus on Healthcare Workforce Needs

Feb -06

Source: zacks.com

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Allianz Asset Management GmbH Has $43.56 Million Stake in Adtalem Global Education Inc. $ATGE

Feb -06

Source: defenseworld.net

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Adtalem Global Education Becomes Covista

Feb -05

Source: businesswire.com

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: 6.5/10

Value: 7.6

Growth: 7.3

Quality: 6.5

Yield: 2.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Laureate Education

A-Score: 6.2/10

Value: 2.9

Growth: 5.6

Quality: 6.0

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Strategic Education

A-Score: 5.3/10

Value: 6.3

Growth: 4.0

Quality: 6.2

Yield: 6.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Adtalem Global Education

A-Score: 5.3/10

Value: 5.7

Growth: 7.4

Quality: 7.4

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Grand Canyon Education

A-Score: 5.2/10

Value: 3.1

Growth: 6.7

Quality: 8.1

Yield: 0.0

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Stride

A-Score: 4.3/10

Value: 7.7

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

101.15$

Current Price

101.15$

Potential

-0.00%

Expected Cash-Flows