Covista Inc. (NYSE: ATGE)

Sector: Consumer Defensive Industry: Education & Training Services CIK: 0000730464
Market Cap 3.46 Bn
P/B 2.51
P/E 13.66
P/S 1.83
ROIC (Qtr) 12.54
Div Yield % 0.00
Rev 1y % (Qtr) 12.43
Total Debt (Qtr) 729.55 Mn
Debt/Equity (Qtr) 0.53
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About

Adtalem Global Education Inc., a leading healthcare educator in the United States, trades under the ticker symbol ATGE and operates in the healthcare and education industries. The company's main business activities involve providing high-quality education and training to healthcare professionals, with operations in multiple countries and regions. Adtalem's institutions offer a range of programs, including undergraduate and graduate degrees as well as certificate programs, in fields such as nursing, medicine, and veterinary medicine. The company's...

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Investment thesis

Bull case

  • Strong operating cash flow of 427.89M provides robust 0.59x coverage of total debt 729.55M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 427.89M provides strong 10.14x coverage of stock compensation 42.20M, indicating sustainable incentive practices.
  • Robust free cash flow of 375.35M exceeds capital expenditure of 52.55M by 7.14x, indicating strong organic growth funding capability.
  • Operating cash flow of 427.89M provides solid 0.97x coverage of current liabilities 442.88M, showing strong operational health.
  • Retained earnings of 2.92B provide full 4.19x coverage of long-term debt 695.63M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 427.89M barely covers its investment activities of (57.35M), with a coverage ratio of -7.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 58.64M provide limited coverage of acquisition spending of (5M), which is -11.73x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High financing cash flow of (507.32M) relative to working capital of (139.90M), which is 3.63x suggests concerning dependence on external funding for operational needs.
  • Free cash flow of 375.35M represents just -2.44x of debt issuance (153.77M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 427.89M is outpaced by equity issuance of (309.57M) (-1.38 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Education & Training Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EDU New Oriental Education & Technology Group Inc. 9.35 Bn 24.58 1.82 0.78 Bn
2 TAL TAL Education Group 6.18 Bn 22.22 2.20 0.38 Bn
3 GHC Graham Holdings Co 5.47 Bn 12.27 1.91 1.17 Bn
4 LAUR Laureate Education, Inc. 5.20 Bn 25.55 3.29 0.44 Bn
5 LOPE Grand Canyon Education, Inc. 4.62 Bn 21.85 4.23 0.11 Bn
6 LRN Stride, Inc. 3.61 Bn 11.32 1.43 0.56 Bn
7 ATGE Covista Inc. 3.46 Bn 13.66 1.83 0.73 Bn
8 PRDO PERDOCEO EDUCATION Corp 2.84 Bn 42.39 1.73 0.06 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.52 0.71
EV to Cash from Ops. EV/CFO 9.27 6.80
EV to Debt EV to Debt 5.44 11.15
EV to EBIT EV/EBIT 10.63 112.78
EV to EBITDA EV/EBITDA 8.82 6.48
EV to Free Cash Flow [EV/FCF] EV/FCF 10.57 5.57
EV to Market Cap EV to Market Cap 1.15 582,173.64
EV to Revenue EV/Rev 2.10 1.74
Price to Book Value [P/B] P/B 2.51 -3.80
Price to Earnings [P/E] P/E 13.66 -1.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 11.73
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.69
Interest Coverage Int. cover (Qtr) 8.13 53.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4.31 -82.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -69.99 25.11
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.53 -39.04
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.86 -34.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.86 -40.70
EBT Growth (1y) % EBT 1y % (Qtr) 27.36 -52.53
EPS Growth (1y) % EPS 1y % (Qtr) 27.50 -29.51
FCF Growth (1y) % FCF 1y % (Qtr) 60.52 -36.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.23 -3.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.72 0.63
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.13 0.73
Current Ratio Curr Ratio (Qtr) 0.68 1.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.53 3.83
Interest Cover Ratio Int Coverage (Qtr) 8.13 53.05
Times Interest Earned Times Interest Earned (Qtr) 8.13 53.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 24.30 -30.62
EBIT Margin % EBIT Margin % (Qtr) 19.77 -82.13
EBT Margin % EBT Margin % (Qtr) 17.34 -47.07
Gross Margin % Gross Margin % (Qtr) 57.40 50.48
Net Profit Margin % Net Margin % (Qtr) 13.40 -48.61