ITT Educational Services, Inc. (ESINQ) Stock Price & Analysis

ITT Educational Services, Inc. (ESINQ) Consumer Business Overview

ITT Educational Services, Inc. was a significant provider of postsecondary degree and career-focused programs across the United States, offering master, bachelor, and associate degrees in various fields. The institution, once operating 138 college locations, ceased operations and filed for Chapter 7 liquidation in 2016, marking its exit from the education sector.

What Is the Investment Thesis for ESINQ?

The investment thesis for ITT Educational Services, Inc. (ESINQ) must be viewed through a historical lens, as the company filed for Chapter 7 liquidation on September 16, 2016, rendering it no longer an operational entity or a viable investment. Prior to its liquidation, the company's business model revolved around providing diverse postsecondary degree and short-term professional programs to approximately 45,000 students across 138 locations. Key historical value drivers included its extensive geographic reach and broad program portfolio, catering to various career paths. However, the ultimate liquidation underscores the significant risks faced by for-profit education providers, including regulatory scrutiny, declining enrollment, and financial sustainability challenges. The company's reported profit margin of 2.7% and gross margin of 54.0% as of December 31, 2015, were insufficient to overcome the operational and financial pressures that led to its bankruptcy. Consequently, any analysis of ESINQ today serves purely as a case study in corporate failure within the education sector, with no forward-looking investment potential.

Based on FMP financials and quantitative analysis

ESINQ Key Highlights

Market Capitalization of $0.00B reflects the company's Chapter 7 liquidation status as of 2016, indicating no equity value for shareholders.

• A P/E ratio of 0.00 further confirms the absence of earnings and the company's non-operational status following its bankruptcy filing.
• Reported Profit Margin of 2.7% as of December 31, 2015, indicated a narrow profitability base prior to its liquidation.
• Gross Margin of 54.0% as of December 31, 2015, suggested a historically strong ability to control direct costs relative to revenue.
• A Beta of 432.93, while a historical metric, highlights extreme volatility in the stock price prior to its cessation of trading, indicative of significant market uncertainty.

Who Are ESINQ's Competitors?

ESINQ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ESINQ's Key Strengths?

Broad program portfolio covering diverse fields like IT, healthcare, business, and skilled trades, appealing to a wide student base.

• Extensive geographic reach with 138 college locations across 39 states as of December 31, 2015, providing widespread access.
• Historically served a significant student population of approximately 45,000, indicating a substantial operational scale.
• Long operating history since 1946, suggesting established infrastructure and experience in the education sector.

What Are ESINQ's Weaknesses?

Filed for Chapter 7 liquidation in 2016, indicating severe financial distress and operational failure.

• High Beta of 432.93, reflecting extreme stock price volatility and investor uncertainty prior to liquidation.
• Profit margin of 2.7% as of December 31, 2015, suggesting thin profitability margins relative to its operations.
• Likely faced significant regulatory scrutiny and declining enrollment trends common to the for-profit education sector, contributing to its downfall.

What Are the Key Risks for ESINQ?

Complete loss of shareholder value due to the Chapter 7 liquidation. The company's assets are being liquidated to pay creditors, and common stockholders are typically the last to receive any distribution, which is highly unlikely in a Chapter 7 scenario.

• The company is no longer operational, meaning there is no underlying business activity to generate revenue or profit. This represents a fundamental and irreversible risk to any remaining investment.
• Any residual legal liabilities or claims against the former entity could further complicate the liquidation process, although this primarily impacts creditors rather than shareholders at this stage.
• Extremely low to non-existent liquidity for the stock (ESINQ) on the OTC market, making it virtually impossible to sell any remaining shares.
• The risk of permanent delisting from the OTC market as the liquidation process concludes, removing any public trading venue for the shares.

What Threats Does ESINQ Face?

• Ongoing legal and administrative processes related to the Chapter 7 liquidation, which formally dissolved the company.
• Complete loss of shareholder value due to the bankruptcy and liquidation of assets.
• Reputational damage associated with the closure and its impact on former students, potentially affecting any residual brand value.
• Intense regulatory environment and scrutiny historically faced by for-profit education institutions, which contributed to the company's operational challenges leading to its demise.

What Are ESINQ's Competitive Advantages?

• Extensive physical footprint with 138 college locations across 39 states, providing broad geographic access to its programs.
• Diverse program portfolio spanning multiple high-demand fields such as IT, healthcare, business, and skilled trades, catering to a wide range of student interests and career aspirations.
• Established brand recognition as a long-standing for-profit education provider since its founding in 1946.
• Ability to offer both degree and short-term certificate programs, potentially capturing different segments of the adult education market.

What Does ESINQ Do?

ITT Educational Services, Inc. was founded in 1946 and headquartered in Carmel, Indiana, evolving into a prominent provider of postsecondary degree programs across the United States. By December 31, 2015, the company operated 138 college locations in 39 states, serving approximately 45,000 students. Its academic offerings encompassed master, bachelor, and associate degree programs, alongside short-term information technology and business learning solutions designed for career advancers and other professionals seeking specialized skills. The curriculum was extensive, covering diverse fields such as business education (including accounting, business administration, financial services, manufacturing, marketing and advertising, and sales) and drafting and design programs (architectural, civil, computer-aided, electrical and electronics, industrial engineering technology, interior design, landscape architecture, mechanical, and multimedia communications). Furthermore, ITT Educational Services provided electronics technology programs focusing on communications, computer technology, electronics product design and fabrication, industrial electronics, instrumentation, and telecommunications. Its criminal justice programs included corrections, cyber security, investigations, and security and policing, while IT programs covered communications, network administration, network technology, software development, systems technology, and technical support. The company also operated the Breckinridge School of Nursing and Health Sciences, offering programs in health information technology, medical assisting and administration, and nursing. However, on September 16, 2016, ITT Educational Services Inc., along with its affiliates, filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the Southern District of Indiana, leading to the cessation of all operations.

What Products and Services Does ESINQ Offer?

• Provided postsecondary degree programs, including master, bachelor, and associate degrees.
• Offered short-term information technology and business learning solutions for career advancers.
• Delivered business education programs such as accounting, business administration, and marketing.
• Conducted drafting and design programs, including architectural, civil, and computer-aided drafting.
• Implemented electronics technology programs covering communications, computer technology, and industrial electronics.
• Administered criminal justice programs focused on corrections, cyber security, and investigations.
• Presented IT programs like network administration, software development, and technical support.
• Operated the Breckinridge School of Nursing and Health Sciences, offering health information technology, medical assisting, and nursing programs.
• Maintained 138 college locations across 39 states as of December 31, 2015.

How Does ESINQ Make Money?

• Generated revenue primarily through tuition fees from students enrolled in its master, bachelor, and associate degree programs.
• Derived income from fees for short-term information technology and business learning solutions aimed at professionals.
• Operated a network of 138 physical college campuses across 39 states to deliver its educational services.
• Relied on student enrollment across a diverse portfolio of programs, including business, drafting, electronics, criminal justice, IT, and nursing, to sustain operations.

What Industry Does ESINQ Operate In?

ITT Educational Services, Inc. operated within the Education & Training Services industry, a segment of the broader Consumer Defensive sector. This industry is characterized by a diverse landscape of public, private, and for-profit institutions offering various educational programs. Historically, the for-profit education sector, where ITT Educational Services was a major player, experienced periods of rapid growth driven by demand for vocational and career-focused training. However, it also faced intense scrutiny regarding student outcomes, accreditation, and federal funding eligibility. Market trends leading up to 2016 included increasing regulatory oversight, particularly from the U.S. Department of Education, and heightened competition from traditional non-profit institutions and emerging online learning platforms. ITT Educational Services, with its 138 locations and broad program offerings, was positioned as a large-scale provider, but ultimately succumbed to the pressures and challenges inherent in this highly regulated and competitive environment, leading to its Chapter 7 liquidation.

Who Are ESINQ's Key Customers?

• Approximately 45,000 students enrolled in master, bachelor, and associate degree programs.
• Career advancers seeking specialized information technology skills.
• Professionals looking for short-term business learning solutions.
• Individuals pursuing vocational training in fields like drafting, electronics, and criminal justice.
• Students pursuing healthcare-related education through the Breckinridge School of Nursing and Health Sciences.

Company Profile

ITT Educational Services, Inc. operates in the Education & Training Services industry within the Consumer Defensive sector. It is headquartered in Carmel, US. The company is led by CEO Angela K. Knowlton. ESINQ has traded publicly since 1994.

Return on equity for ITT Educational Services, Inc. stands at 15.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 3.5%, showing how much profit it generates from its asset base. ESINQ trades at a trailing price-to-earnings ratio of 0.00, below the Consumer Defensive sector average of ~27.20x. A current ratio of 0.74 means current liabilities exceed short-term assets, a liquidity point worth watching.

ITT Educational Services, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.91 places it in the safe zone, indicating low near-term bankruptcy risk.

ITT Educational Services, Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 141.1% above estimates on average.

ESINQ Financials

ESINQ Latest News

No recent news available for ESINQ.

ESINQ Analyst Consensus

ESINQ MoonshotScore

Common Questions About ESINQ (Consumer Discretionary)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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