Adtalem Global Education Inc (ATGE)

Adtalem Global Education Inc. (ATGE) Overview

Company Profile:

History:

• Founded in 1885 as the American Medical Missionary College
• Became DeVry University in 1970
• Acquired several other educational institutions over the years
• Rebranded as Adtalem Global Education Inc. in 2015

Core Business Areas:

• Postsecondary education: DeVry University, Chamberlain University, Ross University School of Medicine, American University of the Caribbean School of Medicine, Becker Professional Education
• Professional education: Becker Professional Education

Leadership Team:

• President and CEO: Lisa Wardell
• CFO: Craig West
• COO: Phil Regier

Top Products and Market Share:

• Postsecondary education:
  • Undergraduate and graduate programs in business, technology, healthcare, and more
  • Market share: approximately 1% of the US postsecondary education market
• Professional education:
  • CPA review courses, nursing continuing education, and other professional development programs
  • Market share: approximately 10% of the US professional education market

Total Addressable Market:

• The global education market was valued at $7.3 trillion in 2022 and is expected to reach $10.4 trillion by 2028.
• The US postsecondary education market was valued at $203 billion in 2022 and is expected to reach $252 billion by 2028.
• The US professional education market was valued at $12.2 billion in 2022 and is expected to reach $15.3 billion by 2028.

Financial Performance:

• Revenue: $1.5 billion in 2022, down from $1.7 billion in 2021
• Net income: $103 million in 2022, down from $162 million in 2021
• Profit margin: 6.9% in 2022, down from 9.5% in 2021
• Earnings per share (EPS): $0.52 in 2022, down from $0.81 in 2021

Dividends and Shareholder Returns:

• Dividend history: Adtalem Global Education Inc. has paid dividends consistently since 2016. The current annual dividend yield is 1.8%.
• Shareholder returns: Over the past year, ATGE stock has returned -12.5%. Over the past five years, it has returned 12.3%.

Growth Trajectory:

• Historical growth: Adtalem Global Education Inc. has grown revenue at a compound annual growth rate (CAGR) of 3.5% over the past five years.
• Future growth projections: Analysts expect the company to grow revenue at a CAGR of 2.5% over the next five years.
• Recent growth initiatives: Adtalem Global Education Inc. is investing in online education and expanding its international operations.

Market Dynamics:

• Industry trends: The education industry is being driven by the increasing demand for online education and the need for skilled workers.
• Demand-supply scenario: The demand for education is expected to continue to grow, while the supply of qualified educators is limited.
• Technological advancements: Technology is playing an increasingly important role in education, with the rise of online learning platforms, virtual reality, and artificial intelligence.

Competitors:

• Postsecondary education: University of Phoenix, Grand Canyon University, Western Governors University
• Professional education: Kaplan, Becker Professional Education, Gleim

Potential Challenges and Opportunities:

• Challenges: Increasing competition, rising costs of education, and declining enrollment
• Opportunities: Growing demand for online education, expansion into new markets, and partnerships with other educational institutions

Recent Acquisitions (last 3 years):

• 2021: Acquirement of Walden University from Laureate Education for $1.5 billion. This acquisition expanded Adtalem Global Education Inc.'s reach into the online education market and provided it with access to a new student population.
• 2022: Acquired Carrington College California from Global Knowledge for $60 million. This acquisition strengthened Adtalem Global Education Inc.'s position in the healthcare education market.

AI-Based Fundamental Rating:

• Rating: 7 out of 10
• Justification: Adtalem Global Education Inc. has a strong financial position and is well-positioned in the growing education market. However, the company faces challenges from increasing competition and declining enrollment. The company's future prospects are largely dependent on its ability to execute its growth initiatives.

Sources and Disclaimers:

• Sources: Adtalem Global Education Inc.'s website, investor relations website, annual reports, and financial statements.
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.