BirayNetworks Article Website

	BirayNetworks Article Website Gathering New Information about Stocks, Health, and Sports

List of Articles Stocks and Investing Stocks I Own Stock Advice Weight Loss and Fitness Sports Donate Back to Home	A Financial Analysis of DeVry Introduction This section describes what DeVry produces. According to Reuters, DeVry “offers undergraduate and graduate degree programs in technology; undergraduate and graduate degree programs in business and healthcare technology, and graduate degree programs in management,” among other degrees. More specifically, DeVry offers these courses both in person and online to both high school graduates and college graduates. These courses focus on all areas of study, and new resources and subjects are being introduced at a rapid pace. At a much smaller scale, DeVry also offers medical and healthcare educational services to a variety of different customers, and Devry also offers some professional and training programs as well. The business model is fairly simple, but the model is solid. As more jobs begin to require some form of training, DeVry and its competitors will begin to flourish. Business This section describes what DeVry produces. According to Reuters, DeVry “offers undergraduate and graduate degree programs in technology; undergraduate and graduate degree programs in business and healthcare technology, and graduate degree programs in management,” among other degrees. More specifically, DeVry offers these courses both in person and online to both high school graduates and college graduates. These courses focus on all areas of study, and new resources and subjects are being introduced at a rapid pace. At a much smaller scale, DeVry also offers medical and healthcare educational services to a variety of different customers, and Devry also offers some professional and training programs as well. The business model is fairly simple, but the model is solid. As more jobs begin to require some form of training, DeVry and its competitors will begin to flourish. Growth DeVry has illustrated solid growth prospects over the past year. According to Reuters, DeVry reported a $0.93 billion revenue product last year. This number is up over 14.48% than it was the previous year. Compared to the industry’s average of 0.80%, investors see the relative strength compared to other competitors. This number is higher than the company’s five year average of 7.57%. Moreover, competitor annual averages of 14.58% (ITT Education) and 14.75% (Apollo) are similar to DeVry’s current figures. And given that DeVry’s five year average of 7.57% is consistent to the industry’s five year average of 10.78%, this company has the potential to move even higher. DeVry’s earnings grew at a strong 59.94% last year—a number much higher than the industry average. Competitors such as Apollo only saw a drop of 4.47% and ITT saw a disappointing increase in earnings of 39.71%. Therefore, both earnings and revenue growth is strong for DeVry. Compiling all this information together and investors comes across ROE. Over the past year, DeVry reported an ROE of 17.16%. Therefore, out of all shareholder equity, more than 18% (near five year average of 10.08%) comes from earnings instead of debt or stock. This number is much stronger compared to the industry average of 2.77%, and the number is better than some competitor averages of 38.53% (Strayer) and 45.65% (Apollo). Therefore, DeVry has a history of strong earnings per its equity share—which reflects the strong capital gain movement over the past year. And if history is any indication, there should be no reason why DeVry cannot continue its success. The same logic applies to DeVry’s 11.33% ROA (above industry average) and 16.23% ROI (above industry average). Compiling all this information together and investors comes across ROE. Over the past year, DeVry reported an ROE of 17.16%. Therefore, out of all shareholder equity, more than 18% (near five year average of 10.08%) comes from earnings instead of debt or stock. This number is much stronger compared to the industry average of 2.77%, and the number is better than some competitor averages of 38.53% (Strayer) and 45.65% (Apollo). Therefore, DeVry has a history of strong earnings per its equity share—which reflects the strong capital gain movement over the past year. And if history is any indication, there should be no reason why DeVry cannot continue its success. The same logic applies to DeVry’s 11.33% ROA (above industry average) and 16.23% ROI (above industry average). Valuation With fairly high growth estimates and historical data, there should be evidence of an overvalued company. However, this is not strictly the case. DeVry has a forward P/E ratio of 34.01 and a price to sales ratio of 3.74 compared to the industry’s respective 1.71 and 0.21, which shows a relatively overvalued status. In comparison, the rest of the market cap competitors have ratios that higher than DeVry. Strayer has a forward price to earnings ratio of 43.11 and price to sales ratio of 8.74. What makes DeVry’s figures are more enticing is these competing firms aren’t growing so greatly as strongly as DeVry. DeVry can now be seen as both a growing and valued company. Moreover, DeVry has a relatively low PEG (1.31) ratio compared to other competitors’ numbers as well. Efficiency DeVry is efficient. Inventory turnover at 5274.29 is strong compared to other industry market-cap rivals ITT). Moreover, asset turnover is also strong at 1.02 compared to competitor figures. Receivables turnover were at 9.66, but cash is not an issue for DeVry In terms of liquidation, DeVry’s current ratio is at 1.30. This number is a bit risky, but the company’s capital expenditures have increased (14.80%) which means further increases in capacity and economies of scale may be present in the future, because of this financing. Moreover, institutions own 95% of all DeVry shares. Since the institutional investors have a larger gross amount of capital to lose compared to the retail investor, a high institutional percentage illustrates confidence in the stock's ability. The dividend rate of 0.22% is also high. Technical Analysis DeVry performed great in the past year. The company’s share price has increased 58.34% year-to-year. This type of growth is beautiful for a recessionary-type economy, especially considering the fact that the housing market and construction is doing so poorly. There seems to be some support at the 40 dollar share price range dating back to late April 2008. The last time DeVry reached this amount the company rebounded and appreciated 20%. There is a possibility a similar or better situation could occur in the future. More specific to the current month, DeVry illustrates strong technical signals. Parabolic SAR is below and upward trending the current share price. This event usually signals an upturn in share price. The company is a little undervalued compared to the RSI index at 43.12, but it is better to be an advocate of fundamental valuations before technical valuations. Therefore, while now isn't the most ideal time to purchase shares of DeVry according to technical analysis, purchasing shares will still produce strong long terms gains. Conclusion DeVry is a great acquisition for any portfolio. The company's business model and fundamental analysis are both strong. It is very rare to find a company that has both strong valuation and growth, so it is wise to take advantage of these situations as they arise. -Dennis Biray July 18th, 2008 ©2008 BirayNetworks. All Rights Reserved

List of
Articles

Stocks and Investing

Stocks I Own

Stock Advice

Weight Loss and Fitness

Sports

Donate

Back to Home

A Financial Analysis of DeVry

Introduction

This section describes what DeVry produces. According to Reuters, DeVry “offers undergraduate and graduate degree programs in technology; undergraduate and graduate degree programs in business and healthcare technology, and graduate degree programs in management,” among other degrees. More specifically, DeVry offers these courses both in person and online to both high school graduates and college graduates. These courses focus on all areas of study, and new resources and subjects are being introduced at a rapid pace. At a much smaller scale, DeVry also offers medical and healthcare educational services to a variety of different customers, and Devry also offers some professional and training programs as well. The business model is fairly simple, but the model is solid. As more jobs begin to require some form of training, DeVry and its competitors will begin to flourish.

Business

Growth

DeVry has illustrated solid growth prospects over the past year. According to Reuters, DeVry reported a $0.93 billion revenue product last year. This number is up over 14.48% than it was the previous year. Compared to the industry’s average of 0.80%, investors see the relative strength compared to other competitors. This number is higher than the company’s five year average of 7.57%. Moreover, competitor annual averages of 14.58% (ITT Education) and 14.75% (Apollo) are similar to DeVry’s current figures. And given that DeVry’s five year average of 7.57% is consistent to the industry’s five year average of 10.78%, this company has the potential to move even higher. DeVry’s earnings grew at a strong 59.94% last year—a number much higher than the industry average. Competitors such as Apollo only saw a drop of 4.47% and ITT saw a disappointing increase in earnings of 39.71%. Therefore, both earnings and revenue growth is strong for DeVry.

Compiling all this information together and investors comes across ROE. Over the past year, DeVry reported an ROE of 17.16%. Therefore, out of all shareholder equity, more than 18% (near five year average of 10.08%) comes from earnings instead of debt or stock. This number is much stronger compared to the industry average of 2.77%, and the number is better than some competitor averages of 38.53% (Strayer) and 45.65% (Apollo). Therefore, DeVry has a history of strong earnings per its equity share—which reflects the strong capital gain movement over the past year. And if history is any indication, there should be no reason why DeVry cannot continue its success. The same logic applies to DeVry’s 11.33% ROA (above industry average) and 16.23% ROI (above industry average).

Valuation

With fairly high growth estimates and historical data, there should be evidence of an overvalued company. However, this is not strictly the case. DeVry has a forward P/E ratio of 34.01 and a price to sales ratio of 3.74 compared to the industry’s respective 1.71 and 0.21, which shows a relatively overvalued status. In comparison, the rest of the market cap competitors have ratios that higher than DeVry. Strayer has a forward price to earnings ratio of 43.11 and price to sales ratio of 8.74. What makes DeVry’s figures are more enticing is these competing firms aren’t growing so greatly as strongly as DeVry. DeVry can now be seen as both a growing and valued company. Moreover, DeVry has a relatively low PEG (1.31) ratio compared to other competitors’ numbers as well.

Efficiency

DeVry is efficient. Inventory turnover at 5274.29 is strong compared to other industry market-cap rivals ITT). Moreover, asset turnover is also strong at 1.02 compared to competitor figures. Receivables turnover were at 9.66, but cash is not an issue for DeVry In terms of liquidation, DeVry’s current ratio is at 1.30. This number is a bit risky, but the company’s capital expenditures have increased (14.80%) which means further increases in capacity and economies of scale may be present in the future, because of this financing. Moreover, institutions own 95% of all DeVry shares. Since the institutional investors have a larger gross amount of capital to lose compared to the retail investor, a high institutional percentage illustrates confidence in the stock's ability. The dividend rate of 0.22% is also high.

Technical Analysis

DeVry performed great in the past year. The company’s share price has increased 58.34% year-to-year. This type of growth is beautiful for a recessionary-type economy, especially considering the fact that the housing market and construction is doing so poorly. There seems to be some support at the 40 dollar share price range dating back to late April 2008. The last time DeVry reached this amount the company rebounded and appreciated 20%. There is a possibility a similar or better situation could occur in the future.

More specific to the current month, DeVry illustrates strong technical signals. Parabolic SAR is below and upward trending the current share price. This event usually signals an upturn in share price. The company is a little undervalued compared to the RSI index at 43.12, but it is better to be an advocate of fundamental valuations before technical valuations. Therefore, while now isn't the most ideal time to purchase shares of DeVry according to technical analysis, purchasing shares will still produce strong long terms gains.

Conclusion

DeVry is a great acquisition for any portfolio. The company's business model and fundamental analysis are both strong. It is very rare to find a company that has both strong valuation and growth, so it is wise to take advantage of these situations as they arise.

-Dennis Biray
July 18th, 2008