Adtalem’s $750 Million Share Repurchase Signals Confidence and Undervaluation – Buyback Wednesdays

I had lunch with a couple of investor friends this week, and one of them was discussing his experience taking Waymos while we ordered food in a restaurant by scanning a QR code with minimal interaction with staff. In an age of AI that requires a wholesale reimagining of what labor will look like in the future, the need for career-focused education is back in the spotlight. For-profit education companies have long promised to bridge that gap – offering adults and students a path to employment through skill-based training. But behind this mission lies a troubled history.

The Obama administration launched a sweeping crackdown on the sector in 2011, citing widespread fraud, inflated job placement claims, and crippling student debt. Major players like Corinthian Colleges and ITT Technical Institute collapsed under regulatory pressure. Apollo Education (the parent of University of Phoenix) was consumed by the PE firm Apollo Global Management (APO) and I remember participating in the wide arbitrage spread that merger presented nearly nine years ago. 

DeVry University, once a key player in this industry, didn’t escape scrutiny. It faced major lawsuits and settlements, including a $100 million FTC settlement for misleading advertising. But unlike its peers, DeVry didn’t fold. It pivoted.

Rebranding as Adtalem Global Education in 2017, the company sold off its university brand and turned its focus toward healthcare education. Today, Adtalem is back in the headlines. This time, not for controversy, but on account of a huge share repurchase announcement. Given its rocky past and strategic overhaul, it’s worth taking a closer look at how this company has evolved and what its future holds.

Adtalem Global Education Inc.  (ATGE): $103.62

Market Cap: $3.73B

Enterprise Value: $4.24B

Key Insights

• Adtalem has transformed itself into an essential healthcare education company,  graduating 29,000 students this year, approximately 90% with degrees focused on healthcare-related professions.
• The company is poised to benefit from the growing shortage of healthcare workers.
• The company’s two core assets, Chamberlain and Walden Universities, have consistently driven growth, posting average quarterly enrollment gains of 9% and 13.5%, respectively.

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