Adtalem Global Return On Equity vs. Current Valuation
| ATGE Stock | USD 63.03 1.08 1.68% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.0737 | Current Value 0.07 | Quarterly Volatility 0.11796747 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.39 | 0.5 |
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For Adtalem Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Adtalem Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Adtalem Global Education utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Adtalem Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Adtalem Global Education over time as well as its relative position and ranking within its peers.
Adtalem |
Adtalem Global's Revenue Breakdown by Earning Segment
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Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Adtalem Global. If investors know Adtalem will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Adtalem Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.08) | Earnings Share 2.66 | Revenue Per Share 37.708 | Quarterly Revenue Growth 0.118 | Return On Assets 0.0552 |
The market value of Adtalem Global Education is measured differently than its book value, which is the value of Adtalem that is recorded on the company's balance sheet. Investors also form their own opinion of Adtalem Global's value that differs from its market value or its book value, called intrinsic value, which is Adtalem Global's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Adtalem Global's market value can be influenced by many factors that don't directly affect Adtalem Global's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Adtalem Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Adtalem Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Adtalem Global's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Adtalem Global Education Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Adtalem Global's current stock value. Our valuation model uses many indicators to compare Adtalem Global value to that of its competitors to determine the firm's financial worth. Adtalem Global Education is rated fifth in return on equity category among its peers. It is rated third in current valuation category among its peers reporting about 39,277,323,785 of Current Valuation per Return On Equity. At present, Adtalem Global's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Adtalem Global by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Adtalem Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Adtalem Global |
| = | 0.0782 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Adtalem Global |
| = | 3.07 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Adtalem Current Valuation vs Competition
Adtalem Global Education is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is presently estimated at about 19.3 Billion. Adtalem Global retains roughly 3.07 Billion in current valuation claiming about 16% of stocks in Consumer Discretionary industry.
Adtalem Global Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Adtalem Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Adtalem Global will eventually generate negative long term returns. The profitability progress is the general direction of Adtalem Global's change in net profit over the period of time. It can combine multiple indicators of Adtalem Global, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -2 M | -2.1 M | |
| Operating Income | 193.4 M | 130.1 M | |
| Income Before Tax | 128.8 M | 119.8 M | |
| Total Other Income Expense Net | -37 M | -38.9 M | |
| Net Income | 117 M | 91.6 M | |
| Income Tax Expense | 11.8 M | 11.2 M | |
| Net Income Applicable To Common Shares | 107.4 M | 115.1 M | |
| Net Income From Continuing Ops | 91.6 M | 103 M | |
| Non Operating Income Net Other | 6.3 M | 6.6 M | |
| Interest Income | 3.4 M | 3.9 M | |
| Net Interest Income | -56.9 M | -54 M | |
| Change To Netincome | -2.9 M | -2.8 M | |
| Net Income Per Share | 1.88 | 1.97 | |
| Income Quality | 2.29 | 2.41 | |
| Net Income Per E B T | 0.96 | 0.80 |
Adtalem Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Adtalem Global. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Adtalem Global position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Adtalem Global's important profitability drivers and their relationship over time.
Use Adtalem Global in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Adtalem Global position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Adtalem Global will appreciate offsetting losses from the drop in the long position's value.Adtalem Global Pair Trading
Adtalem Global Education Pair Trading Analysis
The ability to find closely correlated positions to Adtalem Global could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Adtalem Global when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Adtalem Global - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Adtalem Global Education to buy it.
The correlation of Adtalem Global is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Adtalem Global moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Adtalem Global Education moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Adtalem Global can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Adtalem Global position
In addition to having Adtalem Global in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Petroleum and Natural Gas
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural Gas theme has 61 constituents at this time.
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Additional Information and Resources on Investing in Adtalem Stock
When determining whether Adtalem Global Education is a strong investment it is important to analyze Adtalem Global's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Adtalem Global's future performance. For an informed investment choice regarding Adtalem Stock, refer to the following important reports:Check out Trending Equities. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
To fully project Adtalem Global's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Adtalem Global Education at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Adtalem Global's income statement, its balance sheet, and the statement of cash flows.