Apollo Group Inc. AAPOL

Morningstar Rating

Stock Research and Analysis

by Todd Young

Apollo Group is a leader in for-profit education. Its University of Phoenix, which makes up about 95% of its total revenue, has experienced strong growth recently, partially due to the weak economy. However, long-term secular growth trends in education, Read more

Bulls Say

With limited revenue coming from private student loans, Apollo should see minimal impact from the current tightening of credit.

For-profit education is very scalable. Each additional student enhances profitability.

Apollo's partnership with The Carlyle Group gives it ample international expansion opportunities.

Apollo's focus on working adults leaves it operating in an area that has historically been neglected by traditional universities. Read more

Bears Say

The slowing economy could limit the availability of corporate tuition assistance for students.

With 86% of revenue coming from government-aided loans, Apollo is approaching the 90% threshold.

For-profit education has been under a microscope lately, as Apollo and other schools have been accused of misrepresenting the value of their programs.

Regulatory concerns are high in the industry due in part to high post-graduation student debt loads. Read more

Strategy

Apollo's main goal is to maximize its existing operations at the University of Phoenix. Apollo is also looking to move into attractive international markets. The company has already purchased three schools Read more

Management

In April 2009 Gregory Cappelli became co-CEO and will share the position with Charles Edelstein. Prior to this, Cappelli served as executive vice president of global strategy and assistant to the executive chairman. Edelstein took over as CEO after Read more

Profile

Apollo is the largest for-profit education company, with more than 450,000 students in its core school, the University of Phoenix. The company offers classes online and Read more

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