netrashetty
Netra Shetty
Apollo Group, Inc. (NASDAQ: APOL) is an S&P 500 corporation based in the South Phoenix area of Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, owns several for-profit educational institutions.
The company owns and operates four higher-learning institutions: the University of Phoenix, Western International University, Axia College (of University of Phoenix), the College for Financial Planning, the Institute for Professional Development. It also owns Insight Schools (Online Public High Schools for Washington, Wisconsin, and other locations), and Olympus High School. As of November 2005, the combined enrollment of the four U.S. domestic universities (UOPX, WIU, Axia, CFFP) was approximately 315,350 students. Of these, nearly 90% attend the University of Phoenix, which Apollo describes as "the nation’s largest regionally accredited private university" [3].
As of September 2008 the company also owns and operates Meritus University (Meritus) in Canada.[4] On January 24, 2011, citing how "enrollment will continue to be insufficient to sustain the required quality academic and student service infrastructure we and our students demand", Meritus University announced its closure, with their last classes taking place on March 14, 2011. Additionally, Apollo Group, Inc is the owner of BPP, and joined forces with Carlyle Group for tactical investments in education to expand student base. Apollo also purchased UNIACC college in Santiago, Chile and ULA college in Mexico.
Apollo Group (NASDAQ:APOL) is the world's largest private education provider. Its University of Phoenix is the largest for-profit university by enrollment. The University of Phoenix offers associate, bachelor's and doctoral degree programs to more than 355,800 enrolled students, at 102 campuses and 157 learning centers in forty states. 95% of Apollo's revenue comes from tuition paid to The University of Phoenix, the group's largest subsidiary.[1] Apollo has benefited from an gradual increasing trend in university enrollment as well as increased enrollment due to the sluggish US economy. In a slow economy where jobs are hard to come by, many choose to go back to school to further their education. As a result, more people are attending schools like the University of Phoenix. In 2009, the company generated $3.9 billion in revenue and $598 million in net income.[2]
Company Overview
Business Segments[1]
University of Phoenix: offers associate’s, bachelor’s, master’s and doctoral degrees in a variety of program areas. The school accounts for almost all (95% of the company's revenue.
Western International University: also offers associate's, bachelor's, and master's degreeds in a variety of programs. The school offers undergraduate program courses at its Arizona campus.
Institute for Professional Development: provides program development, administration and management consulting services to private colleges and universities (“Client Institutions”) to establish or expand their programs for working learners. These services typically include degree program design, curriculum development, market research, student recruitment, accounting, and administrative services.
The College for Financial Planning Institutes Corporation: provides financial services education programs, including a Master of Science in three majors, and certification programs in retirement, asset management, and other financial planning areas
Meritus University: Meritus offers degree programs online to working learners throughout Canada and abroad
Business Growth
FY 2009 (ended August 31, 2009)[2]
Net revenue increased 26.5% to $3.9 billion. The company benefited from a 24% increase in enrollment at the University of Phoenix.
Net income increased 25.5% to $598 million.
Trends and Forces
Increasing Demand Drives Up Enrollment - More than 93% of Apollo's revenue comes from tuition. The average age of the University of Phoenix student is in his early thirties. Apollo focuses on marketing itself to the non-traditional higher education population of students older than 24 years old. The U.S. Department of Education estimates that the post-secondary education market is worth at least $370 billion and estimates that nearly 40% of all students enrolled in post-secondary education programs are older than 24. Over the next six years, the percentage of 18-24 year old students will increase by 19%, and the number of non-traditional students should grow at a similar rate. Because such a large percentage of Apollo's revenue comes from tuition, the company's continued success will depend on its ability to recruit and enroll ever-increasing numbers of students.[3]
Capitalizing on Increased Demand for Education During Global Economic Slowdown -
Historically, enrollment at for profit educational institutions has increased during economic downturns as poorer job prospects cause prospective students to view continuing eduction more favorably. People of all ages are going back to school to get a better job and increase their job prospects. Apollo Group has been no exception from this trend. The global economic slowdown has increased their number of students and thus raised revenues. The number of students at the University of Phoenix increased by 24% in 2009.[4] As a result, the company's net revenue grew by 26.5% in 2009.[2]
Government Regulation and Financial Aid Policies Determine APOL's Fiscal Success - The post-secondary education market is very highly regulated for any educational institutions that receive funding from the government; in Apollo's case, government funding is in the form of financial aid programs that subsidize qualified students' education costs. UPX was received accreditation in 1978 and the other three subsidiaries that provide education services (as opposed to one subsidiary's education support services) are accredited and recognized by the U.S. Department of Education. Because 65% of Apollo's annual revenue comes from Federal Education Financial Aid Programs, any significant change in policy for the various financial aid programs will affect Apollo's revenue.
Competition
The post-secondary education market is extremely competitive and not dominated by any single player. The United States has approximately 6,550 post-secondary education institutions:[3]
2,730 private, for-profit schools
2,000 public, non-profit schools
1,820 private, non-profit schools
In addition to this extreme market fragmentation, the extensive accreditation process acts as a significant barrier to entry for new companies.
Of the other private, for-profit schools that target non-traditional students, Apollo Group (APOL) , DeVry University (DV), and ITT Educational Services (ESI) pose the greatest competition to Career Education.
Career Education (CECO) is a global for-profit university that offers associate, master's, bachelor's and doctoral degree programs in vocational areas such as business, communications and IT. The company had an enrollment of 116,000 students on 90 campuses in the the US, France, Italy, and UK.
DeVry (DV) served approximately 130,000 students through its four subsidiary institutions - DeVry University, Ross University, Chamberlain College of Nursing, and Becker Professional Review. DeVry University is an undergraduate institution with more than 80 locations and the Keller Graduate School of Management. Ross University operates the Ross University School of Medicine and the Ross University School of Veterinary Medicine in Dominica.
ITT Educational Services (ESI) operates 124 campuses in 38 states serving approximately 80,000 students.
Latest Full Context Quarter Ending Date
2010/11
Gross Profit Margin
60.6%
EBIT Margin
20.6%
EBITDA Margin
30.5%
Pre-Tax Profit Margin
20.4%
Interest Coverage
92.1
Current Ratio
1.3
Quick Ratio
0.9
Leverage Ratio
2.4
Receivables Turnover
16.7
Asset Turnover
1.5
Revenue to Assets
1.5
ROE from Total Operations
36.1%
Return on Invested Capital
32.6%
Return on Assets
15.3%
Debt/Common Equity Ratio
0.11
Price/Book Ratio (Price/Equity)
4.26
Book Value per Share
$10.01
Total Debt/ Equity
0.13
Long-Term Debt to Total Capital
0.10
SG&A as % of Revenue
30.1%
R&D as % of Revenue
0.0%
Receivables per Day Sales
$18.52
Days CGS in Inventory
0
Working Capital per Share
$3.51
Cash per Share
$7.27
Cash Flow per Share
$4.54
Free Cash Flow per Share
$6.06
Tangible Book Value per Share
$6.71
Price/Cash Flow Ratio
9.4
Price/Free Cash Flow Ratio
7.0
Price/Tangible Book Ratio
6.35
Most recent data
5-Year Averages
Return on Equity
52.8%
Return on Assets
21.1%
Return on Invested Capital
49.6%
Gross Profit Margin
59.4%
Pre-Tax Profit Margin
24.1%
Post-Tax Profit Margin
14.1%
Net Profit Margin (Total Operations)
14.0%
R&D as a % of Sales
0.0%
SG&A as a % of Sales
30.9%
Debt/Equity Ratio
0.06
Total Debt/Equity Ratio
0.26
Most recent data
The company owns and operates four higher-learning institutions: the University of Phoenix, Western International University, Axia College (of University of Phoenix), the College for Financial Planning, the Institute for Professional Development. It also owns Insight Schools (Online Public High Schools for Washington, Wisconsin, and other locations), and Olympus High School. As of November 2005, the combined enrollment of the four U.S. domestic universities (UOPX, WIU, Axia, CFFP) was approximately 315,350 students. Of these, nearly 90% attend the University of Phoenix, which Apollo describes as "the nation’s largest regionally accredited private university" [3].
As of September 2008 the company also owns and operates Meritus University (Meritus) in Canada.[4] On January 24, 2011, citing how "enrollment will continue to be insufficient to sustain the required quality academic and student service infrastructure we and our students demand", Meritus University announced its closure, with their last classes taking place on March 14, 2011. Additionally, Apollo Group, Inc is the owner of BPP, and joined forces with Carlyle Group for tactical investments in education to expand student base. Apollo also purchased UNIACC college in Santiago, Chile and ULA college in Mexico.
Apollo Group (NASDAQ:APOL) is the world's largest private education provider. Its University of Phoenix is the largest for-profit university by enrollment. The University of Phoenix offers associate, bachelor's and doctoral degree programs to more than 355,800 enrolled students, at 102 campuses and 157 learning centers in forty states. 95% of Apollo's revenue comes from tuition paid to The University of Phoenix, the group's largest subsidiary.[1] Apollo has benefited from an gradual increasing trend in university enrollment as well as increased enrollment due to the sluggish US economy. In a slow economy where jobs are hard to come by, many choose to go back to school to further their education. As a result, more people are attending schools like the University of Phoenix. In 2009, the company generated $3.9 billion in revenue and $598 million in net income.[2]
Company Overview
Business Segments[1]
University of Phoenix: offers associate’s, bachelor’s, master’s and doctoral degrees in a variety of program areas. The school accounts for almost all (95% of the company's revenue.
Western International University: also offers associate's, bachelor's, and master's degreeds in a variety of programs. The school offers undergraduate program courses at its Arizona campus.
Institute for Professional Development: provides program development, administration and management consulting services to private colleges and universities (“Client Institutions”) to establish or expand their programs for working learners. These services typically include degree program design, curriculum development, market research, student recruitment, accounting, and administrative services.
The College for Financial Planning Institutes Corporation: provides financial services education programs, including a Master of Science in three majors, and certification programs in retirement, asset management, and other financial planning areas
Meritus University: Meritus offers degree programs online to working learners throughout Canada and abroad
Business Growth
FY 2009 (ended August 31, 2009)[2]
Net revenue increased 26.5% to $3.9 billion. The company benefited from a 24% increase in enrollment at the University of Phoenix.
Net income increased 25.5% to $598 million.
Trends and Forces
Increasing Demand Drives Up Enrollment - More than 93% of Apollo's revenue comes from tuition. The average age of the University of Phoenix student is in his early thirties. Apollo focuses on marketing itself to the non-traditional higher education population of students older than 24 years old. The U.S. Department of Education estimates that the post-secondary education market is worth at least $370 billion and estimates that nearly 40% of all students enrolled in post-secondary education programs are older than 24. Over the next six years, the percentage of 18-24 year old students will increase by 19%, and the number of non-traditional students should grow at a similar rate. Because such a large percentage of Apollo's revenue comes from tuition, the company's continued success will depend on its ability to recruit and enroll ever-increasing numbers of students.[3]
Capitalizing on Increased Demand for Education During Global Economic Slowdown -
Historically, enrollment at for profit educational institutions has increased during economic downturns as poorer job prospects cause prospective students to view continuing eduction more favorably. People of all ages are going back to school to get a better job and increase their job prospects. Apollo Group has been no exception from this trend. The global economic slowdown has increased their number of students and thus raised revenues. The number of students at the University of Phoenix increased by 24% in 2009.[4] As a result, the company's net revenue grew by 26.5% in 2009.[2]
Government Regulation and Financial Aid Policies Determine APOL's Fiscal Success - The post-secondary education market is very highly regulated for any educational institutions that receive funding from the government; in Apollo's case, government funding is in the form of financial aid programs that subsidize qualified students' education costs. UPX was received accreditation in 1978 and the other three subsidiaries that provide education services (as opposed to one subsidiary's education support services) are accredited and recognized by the U.S. Department of Education. Because 65% of Apollo's annual revenue comes from Federal Education Financial Aid Programs, any significant change in policy for the various financial aid programs will affect Apollo's revenue.
Competition
The post-secondary education market is extremely competitive and not dominated by any single player. The United States has approximately 6,550 post-secondary education institutions:[3]
2,730 private, for-profit schools
2,000 public, non-profit schools
1,820 private, non-profit schools
In addition to this extreme market fragmentation, the extensive accreditation process acts as a significant barrier to entry for new companies.
Of the other private, for-profit schools that target non-traditional students, Apollo Group (APOL) , DeVry University (DV), and ITT Educational Services (ESI) pose the greatest competition to Career Education.
Career Education (CECO) is a global for-profit university that offers associate, master's, bachelor's and doctoral degree programs in vocational areas such as business, communications and IT. The company had an enrollment of 116,000 students on 90 campuses in the the US, France, Italy, and UK.
DeVry (DV) served approximately 130,000 students through its four subsidiary institutions - DeVry University, Ross University, Chamberlain College of Nursing, and Becker Professional Review. DeVry University is an undergraduate institution with more than 80 locations and the Keller Graduate School of Management. Ross University operates the Ross University School of Medicine and the Ross University School of Veterinary Medicine in Dominica.
ITT Educational Services (ESI) operates 124 campuses in 38 states serving approximately 80,000 students.
Latest Full Context Quarter Ending Date
2010/11
Gross Profit Margin
60.6%
EBIT Margin
20.6%
EBITDA Margin
30.5%
Pre-Tax Profit Margin
20.4%
Interest Coverage
92.1
Current Ratio
1.3
Quick Ratio
0.9
Leverage Ratio
2.4
Receivables Turnover
16.7
Asset Turnover
1.5
Revenue to Assets
1.5
ROE from Total Operations
36.1%
Return on Invested Capital
32.6%
Return on Assets
15.3%
Debt/Common Equity Ratio
0.11
Price/Book Ratio (Price/Equity)
4.26
Book Value per Share
$10.01
Total Debt/ Equity
0.13
Long-Term Debt to Total Capital
0.10
SG&A as % of Revenue
30.1%
R&D as % of Revenue
0.0%
Receivables per Day Sales
$18.52
Days CGS in Inventory
0
Working Capital per Share
$3.51
Cash per Share
$7.27
Cash Flow per Share
$4.54
Free Cash Flow per Share
$6.06
Tangible Book Value per Share
$6.71
Price/Cash Flow Ratio
9.4
Price/Free Cash Flow Ratio
7.0
Price/Tangible Book Ratio
6.35
Most recent data
5-Year Averages
Return on Equity
52.8%
Return on Assets
21.1%
Return on Invested Capital
49.6%
Gross Profit Margin
59.4%
Pre-Tax Profit Margin
24.1%
Post-Tax Profit Margin
14.1%
Net Profit Margin (Total Operations)
14.0%
R&D as a % of Sales
0.0%
SG&A as a % of Sales
30.9%
Debt/Equity Ratio
0.06
Total Debt/Equity Ratio
0.26
Most recent data
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