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RISE Education Cayman Ltd (REDU) Stock Fundamental Analysis

NASDAQ:REDU - Nasdaq - US76761L1026 - ADR

3.41  -3.74 (-52.31%)

After market: 3.02 -0.39 (-11.44%)

Fundamental Rating

2

REDU gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of REDU have multiple concerns. REDU is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year REDU has reported negative net income.
REDU Yearly Net Income VS EBIT VS OCF VS FCFREDU Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 200M -200M -400M

1.2 Ratios

Industry RankSector Rank
ROA -810.47%
ROE N/A
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
REDU Yearly ROA, ROE, ROICREDU Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 200 -200 -400 -600 -800

1.3 Margins

Industry RankSector Rank
OM -1.57%
PM (TTM) -3.98%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
REDU Yearly Profit, Operating, Gross MarginsREDU Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 40

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3

2. Health

2.1 Basic Checks

Compared to 1 year ago, REDU has about the same amount of shares outstanding.
The debt/assets ratio for REDU is higher compared to a year ago.
REDU Yearly Shares OutstandingREDU Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
REDU Yearly Total Debt VS Total AssetsREDU Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

Based on the Altman-Z score of 0.31, we must say that REDU is in the distress zone and has some risk of bankruptcy.
REDU has a Debt/Equity ratio of -1.22. This is a healthy value indicating a solid balance between debt and equity.
Industry RankSector Rank
Debt/Equity -1.22
Debt/FCF N/A
Altman-Z 0.31
ROIC/WACCN/A
WACCN/A
REDU Yearly LT Debt VS Equity VS FCFREDU Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 200M -200M 400M 600M

2.3 Liquidity

A Current Ratio of 3.56 indicates that REDU has no problem at all paying its short term obligations.
A Quick Ratio of 3.56 indicates that REDU has no problem at all paying its short term obligations.
Industry RankSector Rank
Current Ratio 3.56
Quick Ratio 3.56
REDU Yearly Current Assets VS Current LiabilitesREDU Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 500M 1B

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3. Growth

3.1 Past

The earnings per share for REDU have decreased strongly by -87.56% in the last year.
The Revenue has grown by 9.20% in the past year. This is quite good.
The Revenue has been growing by 12.60% on average over the past years. This is quite good.
EPS 1Y (TTM)-87.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-17854%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-0.37%
Revenue growth 5Y12.6%
Sales Q2Q%55.55%

3.2 Future

REDU is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
REDU is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 25.26% yearly.
EPS Next Y-72.83%
EPS Next 2Y-54.35%
EPS Next 3Y-20.07%
EPS Next 5Y6.3%
Revenue Next Year47.82%
Revenue Next 2Y25%
Revenue Next 3Y24.76%
Revenue Next 5Y25.26%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
REDU Yearly Revenue VS EstimatesREDU Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
REDU Yearly EPS VS EstimatesREDU Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

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4. Valuation

4.1 Price/Earnings Ratio

REDU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 35.44, the valuation of REDU can be described as expensive.
REDU's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE N/A
Fwd PE 35.44
REDU Price Earnings VS Forward Price EarningsREDU Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 49.39
REDU Per share dataREDU EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

A cheap valuation may be justified as REDU's earnings are expected to decrease with -20.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-54.35%
EPS Next 3Y-20.07%

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0

5. Dividend

5.1 Amount

REDU does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RISE Education Cayman Ltd

NASDAQ:REDU (6/10/2022, 8:00:01 PM)

After market: 3.02 -0.39 (-11.44%)

3.41

-3.74 (-52.31%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-18 2022-05-18
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap385.43M
Analysts43.33
Price Target4.74 (39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 35.44
P/S 1.07
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 49.39
EPS(TTM)-0.33
EYN/A
EPS(NY)0.1
Fwd EY2.82%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.18
BVpS-0.12
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -810.47%
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM -1.57%
PM (TTM) -3.98%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score1
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity -1.22
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.56
Quick Ratio 3.56
Altman-Z 0.31
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-87.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-17854%
EPS Next Y-72.83%
EPS Next 2Y-54.35%
EPS Next 3Y-20.07%
EPS Next 5Y6.3%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-0.37%
Revenue growth 5Y12.6%
Sales Q2Q%55.55%
Revenue Next Year47.82%
Revenue Next 2Y25%
Revenue Next 3Y24.76%
Revenue Next 5Y25.26%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A