Adtalem Global Education Stock To $127?

ATGE: Adtalem Global Education logo
ATGE
Adtalem Global Education

Adtalem Global Education (ATGE) stock has fallen 31% during the past day, and is currently trading at $98.02. Our multi-factor assessment suggests that it may be time to buy more shares of ATGE stock. We have, overall, a positive view of the stock, and a price of $127 may not be out of reach. We believe there is not much to fear in ATGE stock given its overall Strong operating performance and financial condition. Taken together with its Low valuation, this makes the stock look Attractive.

Below is our assessment:

  CONCLUSION
What you pay:
Valuation Low
What you get:
Growth Strong
Profitability Moderate
Financial Stability Strong
Downturn Resilience Strong
Operating Performance Strong
 
Stock Opinion Attractive

You can’t predict the next crash, but you can prepare. See how High Quality Portfolio helps you.

Let’s get into details of each of the assessed factors but before that, for quick background: With $3.5 Bil in market cap, Adtalem Global Education provides global workforce solutions, offering medical and healthcare education programs alongside financial services such as test preparation, certifications, conferences, and professional memberships.

Relevant Articles
  1. Salesforce’s Pivot: Why “Agentforce” Matters More Than the Earnings Beat
  2. RBRK Stock Analysis: Strong Growth Meets Rich Valuation
  3. Why Zscaler’s 27% Crash Is the Ultimate Test for Software Investors
  4. Snowflake Stock: AI Winner?
  5. Will The Rally In SMX Stock Continue?
  6. Applied Digital Stock: A $9 Billion Bet on the AI Buildout

[1] Valuation Looks Low

  ATGE S&P 500
Price-to-Sales Ratio 1.9 3.2
Price-to-Earnings Ratio 14.0 23.6
Price-to-Free Cash Flow Ratio 10.9 20.4

This table highlights how ATGE is valued vs broader market. For more details see: ATGE Valuation Ratios

[2] Growth Is Strong

  • Adtalem Global Education has seen its top line grow at an average rate of 8.2% over the last 3 years
  • Its revenues have grown 12% from $1.6 Bil to $1.8 Bil in the last 12 months
  • Also, its quarterly revenues grew 10.8% to $462 Mil in the most recent quarter from $417 Mil a year ago.

  ATGE S&P 500
3-Year Average 8.2% 5.3%
Latest Twelve Months* 12.2% 5.4%
Most Recent Quarter (YoY)* 10.8% 6.6%

This table highlights how ATGE is growing vs broader market. For more details see: ATGE Revenue Comparison

[3] Profitability Appears Moderate

  • ATGE last 12 month operating income was $358 Mil representing operating margin of 19.5%
  • With cash flow margin of 20.7%, it generated nearly $379 Mil in operating cash flow over this period
  • For the same period, ATGE generated nearly $253 Mil in net income, suggesting net margin of about 13.8%

  ATGE S&P 500
Current Operating Margin 19.5% 18.7%
Current OCF Margin 20.7% 20.3%
Current Net Income Margin 13.8% 12.8%

This table highlights how ATGE profitability vs broader market. For more details see: ATGE Operating Income Comparison

[4] Financial Stability Looks Strong

  • ATGE Debt was $776 Mil at the end of the most recent quarter, while its current Market Cap is $3.5 Bil. This implies Debt-to-Equity Ratio of 21.9%
  • ATGE Cash (including cash equivalents) makes up $265 Mil of $2.9 Bil in total Assets. This yields a Cash-to-Assets Ratio of 9.2%

  ATGE S&P 500
Current Debt-to-Equity Ratio 21.9% 20.9%
Current Cash-to-Assets Ratio 9.2% 7.0%

[5] Downturn Resilience Is Strong

ATGE has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

  • ATGE stock fell 52.7% from a high of $41.69 on 12 March 2021 to $19.74 on 23 February 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
  • However, the stock fully recovered to its pre-Crisis peak by 28 October 2022
  • Since then, the stock increased to a high of $154.45 on 30 September 2025 , and currently trades at $98.02

  ATGE S&P 500
% Change from Pre-Recession Peak -52.7% -25.4%
Time to Full Recovery 247 days 464 days

 
2020 Covid Pandemic

  • ATGE stock fell 41.8% from a high of $36.87 on 16 January 2020 to $21.46 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
  • However, the stock fully recovered to its pre-Crisis peak by 27 July 2020

  ATGE S&P 500
% Change from Pre-Recession Peak -41.8% -33.9%
Time to Full Recovery 131 days 148 days

 
2008 Global Financial Crisis

  • ATGE stock fell 37.7% from a high of $62.63 on 22 January 2009 to $39.03 on 4 May 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
  • However, the stock fully recovered to its pre-Crisis peak by 27 January 2010

  ATGE S&P 500
% Change from Pre-Recession Peak -37.7% -56.8%
Time to Full Recovery 268 days 1480 days

 

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ATGE Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.