CNNMoney.com  Aug 10  Comment 
Hillary Clinton unveiled a plan Monday aimed at making college more affordable for everyone.
CNNMoney.com  Jul 29  Comment 
Read full story for latest details.
TheStreet.com  Jun 30  Comment 
NEW YORK (TheStreet) -- Apollo Education Group stock price target was lowered by analysts at Deutsche Bank Markets Research to $20 from $22 with a "hold" rating.  On Tuesday, shares are plunging 14.12% to $13.35. This action comes after...
Benzinga  Jun 30  Comment 
In a report published Tuesday, Bank of America Merrill Lynch analyst Sara Gubins downgraded the rating on Apollo Education Group Inc (NASDAQ: APOL) from Neutral to Underperform, while lowering the price target from $20 to $14. Uncertainties...
TheStreet.com  Jun 29  Comment 
NEW YORK (TheStreet) --  Apollo Education Group  shares are falling 5.08% to $14.75 in after-hours trading on Monday following the release of the company's third quarter 2015 earnings results. For the latest quarter, the company reported...
newratings.com  Jun 29  Comment 
PHOENIX (dpa-AFX) - Apollo Education Group, Inc. (APOL) reported net income for the third quarter of $48.1 million or $0.44 per share, compared to $66.0 million or $0.51 per share for the year-ago quarter. Excluding special items, adjusted...
TheStreet.com  Jun 26  Comment 
NEW YORK (TheStreet) -- Apollo Education shares are declining 0.12% to $16.34 in after-hours trading on Friday after gaining 0.68% to $16.36 in intraday trading today.The private education services provider is scheduled to report its third...
TheStreet.com  Mar 25  Comment 
NEW YORK (TheStreet) -- Shares of Apollo Education Group were falling 22.2% to $21.77 on heavy trading volume Wednesday after the for-profit school reported its fiscal second quarter results which were hurt by lower enrollment. Apollo...


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 degrees 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 benefitted 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.


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.


  1. 1.0 1.1 APOL 2009 10-K "Business" pg. 1-7
  2. 2.0 2.1 2.2 APOL 2009 10-K "Selected Consolidated Financial Data" pg. 52
  3. 3.0 3.1 APOL 2009 10-K "Industry Background" pg. 8-9
  4. APOL 2009 10-K "University of Phoenix Degreed Enrollment" pg. 14
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