Here's How Much You'd Have If You Invested $1000 in Adtalem Global Education a Decade Ago

Zacks
02-07

For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Adtalem Global Education (ATGE) ten years ago? It may not have been easy to hold on to ATGE for all that time, but if you did, how much would your investment be worth today?

Adtalem Global Education's Business In-Depth

With that in mind, let's take a look at Adtalem Global Education's main business drivers.

Adtalem Global Education Inc. is a leading healthcare education provider and workforce solutions innovator. The institutions of the company offer a wide array of programs across medical and healthcare services. Since first-quarter fiscal 2022, Adtalem has operated in three reportable segments:

Chamberlain includes the operations of Chamberlain University, founded in 1889 as Deaconess College of Nursing and acquired by Adtalem in 2005. The segment offers degree and non-degree programs in the nursing and health professions postsecondary education industry.

Walden includes the operations of Walden University, which Adtalem acquired on August 12, 2021. The segment offers more than 100 online certificate, bachelor’s, master’s and doctoral degrees.

Medical and Veterinary includes the operations of the AUC, RUSM, and RUSVM, which are collectively referred to as the “medical and veterinary schools”. This segment offers degree and non-degree programs in the medical and veterinary postsecondary education industry.

Home Office and Other include activities that are not related to any reportable segment and are required to reconcile segmental results.

Beginning the second quarter of fiscal 2022, Adtalem eliminated its Financial Services segment when ACAMS, Becker, OCL, and EduPristine were classified as discontinued operations and assets held for sale. On Mar 10, 2022, the company completed the sale of ACAMS, Becker and OCL. On Jun 17, 2022, it completed the divesture of EduPristine.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Adtalem Global Education a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in February 2015 would be worth $3,012.42, or a gain of 201.24%, as of February 7, 2025, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 195.97% and gold's return of 122.04% over the same time frame.

Analysts are anticipating more upside for ATGE.

Adtalem’s second-quarter fiscal 2025 adjusted earnings and revenues topped the Zacks Consensus Estimate by 30.2% and 4.4%, respectively. The metrics also grew year over year by 47.2% and 13.9%, respectively. The performance was mainly boosted by strong demand at Chamberlain and Walden universities accompanied by its efforts in ensuring operational excellence. Despite increased restructuring expenses and educational services costs, the company’s adjusted EBITDA margin grew 440 bps on the back of leverage of increased top-line and strategic initiatives. Also, the company’s focus on collaborations, innovation, marketing investments and long-term growth strategies is encouraging to its prospects. Owing to the robust fundamentals, it raised the fiscal 2025 guidance. Shares of Adtalem have outperformed the industry in the past six months.

Over the past four weeks, shares have rallied 15.63%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.

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