DV - Devry Inc - 10 of the 13 covering analysts have risen their forecasts

Devry Inc. is educating shareholders on how to make money. Its acquisitive strategy has paid off nicely and earnings are robust. It even announced a dividend in late-2006. A look beneath the numbers reveals a clean bill of health. Over the past month, this year's earnings estimates have risen nine cents to $1.79 per share. 10 of the 13 covering analysts have risen their forecasts.

Full Analysis

DeVry, Inc. (DV) is a provider of post-secondary education in North America. The company is the holding company for DeVry University (including the Keller Graduate School of Management), Ross University, Chamberlain College of Nursing, Becker Professional Review, and Advanced Academics.

DeVry University offers associate's, bachelor's and master's degree programs in technology, healthcare technology, business, and management. Ross University offers doctoral degree programs through its schools of Medicine and Veterinary Medicine while Chamberlain College of Nursing offers associate and bachelor's degree programs in nursing. and Stalla Review for the CFA Exams, provides professional education and test preparation services to candidates of the Certified Public Accountant (CPA) and Chartered Financial Analyst (CFA) professional certification examinations.

The company continues to benefit from strong enrollment growth and increased enrollment of online students. Undergraduate enrollment growth for the 2007 spring and summer terms increased 5.5% and 9.8%, respectively. Online coursetakers increased 22.5% and 26.0% in the 2007 spring and summer terms, respectively.

DV is benefiting from strong demand. A strong motivation for postsecondary education is the expected income increase that comes with a college degree. According to the U.S. Census Bureau, the average income of U.S. employees with a bachelor's degree was $51,550, an 80% increase over employees with only a high school education.

Acquisitions have played a major role in the company's top-line growth. Management has embarked on an acquisition strategy that is diversifying the company's educational program offerings. In 1996 the company acquired Becker CPA Review in order to diversify into professional education and training for accounting and finance professions.

In order to demonstrate the company's turnaround, long-term growth prospects, and expectations for strong cash flow generation, on November 15, 2006, the Board of Directors adopted a dividend policy, declared the company s first dividend, and approved a stock repurchase program. The Board's policy is to declare dividends on a semi-annual basis and the initial annual dividend rate was $0.10 per share.

A look beneath the numbers reveals a clean bill of health. Over the past month, this year's earnings estimates have risen nine cents to $1.79 per share. 10 of the 13 covering analysts have risen their forecasts. The average surprise over the past four quarters is a robust 33.7%. The stock is attractively valued at a PEG ratio of 1.3.

Content Courtesy: Zacks Investment Research

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