ITT Educational Services Inc.ESI

Morningstar Rating

Stock Research and Analysis

by Todd Young

A slowing economy is giving ITT Educational Services' enrollment numbers a lift. This for-profit education company, which already boasts some of the best operating margins in the business, should experience increased profitability as enrollment growth Read more

Bulls Say

Education is very scalable. Each additional student helps improve profitability.

Education tends to be countercyclical as enrollments tend to increase during tough economic times.

Acquiring Daniel Webster College will give ITT a regionally accredited school that it can use to expand in the online arena. Read more

Bears Say

High education costs and burdensome postgraduation debt loads invite added government intervention.

Once the employment market strengthens, tail winds working in ITT's favor may disappear, lowering profitability.

Nongovernment lending will still be a significant portion of ITT's revenue even with the increased government-aided funding. Read more

Strategy

ITT focuses on growing through opening new institutes, adding learning sites to current institutes, offering a wider range of programs, and expanding its online offerings. The company is also planning Read more

Management

CEO Kevin Modany, who has been with the company since 2002, took over as chairman in October 2007, when Rene Champagne retired after nearly 14 years in that role. Modany had also taken over the CEO role when Champagne stepped down in April 2007. We Read more

Profile

ITT is a for-profit postsecondary education provider serving more than 79,000 students at ITT Technical Institute and Daniel Webster College. It offers everything from diploma Read more

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