HAILIANG EDUCATION GROUP-ADR (HLG)

US40522L1089 - ADR

14.3  +0.03 (+0.21%)

Fundamental Rating

3

HLG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of HLG have multiple concerns. HLG is valied quite expensively at the moment, while it does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

HLG had positive earnings in the past year.
Each year in the past 5 years HLG has been profitable.
In the past 5 years HLG always reported a positive cash flow from operatings.

1.2 Ratios

Industry RankSector Rank
ROA 7.19%
ROE 10.69%
ROIC 20.34%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Industry RankSector Rank
OM 44.54%
PM (TTM) 17.09%
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

2

2. Health

2.1 Basic Checks

HLG has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HLG has about the same amount of shares outstanding.
HLG has a worse debt/assets ratio than last year.

2.2 Solvency

HLG has an Altman-Z score of 3.25. This indicates that HLG is financially healthy and has little risk of bankruptcy at the moment.
HLG has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF N/A
Altman-Z 3.25
ROIC/WACC2.71
WACC7.5%

2.3 Liquidity

HLG has a Current Ratio of 0.83. This is a bad value and indicates that HLG is not financially healthy enough and could expect problems in meeting its short term obligations.
HLG has a Quick Ratio of 0.83. This is a bad value and indicates that HLG is not financially healthy enough and could expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 0.83
Quick Ratio 0.83

5

3. Growth

3.1 Past

The earnings per share for HLG have decreased strongly by -36.59% in the last year.
The Earnings Per Share has been growing by 18.67% on average over the past years. This is quite good.
HLG shows a decrease in Revenue. In the last year, the revenue decreased by -7.20%.
The Revenue has been growing by 16.03% on average over the past years. This is quite good.
EPS 1Y (TTM)-36.59%
EPS 3Y0.61%
EPS 5Y18.67%
EPS growth Q2Q-177.53%
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y5.57%
Revenue growth 5Y16.03%
Revenue growth Q2Q-98.62%

3.2 Future

The Earnings Per Share is expected to grow by 12.96% on average over the next years. This is quite good.
HLG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.23% yearly.
EPS Next Y21.43%
EPS Next 2Y18.02%
EPS Next 3Y17.64%
EPS Next 5Y12.96%
Revenue Next Year17.09%
Revenue Next 2Y15.66%
Revenue Next 3Y15.09%
Revenue Next 5Y15.23%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.44, the valuation of HLG can be described as reasonable.
HLG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.42.
A Price/Forward Earnings ratio of 29.65 indicates a quite expensive valuation of HLG.
When comparing the Price/Forward Earnings ratio of HLG to the average of the S&P500 Index (22.74), we can say HLG is valued slightly more expensively.
Industry RankSector Rank
PE 11.44
Fwd PE 29.65

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.04

4.3 Compensation for Growth

HLG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HLG's earnings are expected to grow with 17.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.61
EPS Next 2Y18.02%
EPS Next 3Y17.64%

0

5. Dividend

5.1 Amount

No dividends for HLG!.
Industry RankSector Rank
Dividend Yield N/A

HAILIANG EDUCATION GROUP-ADR

NASDAQ:HLG (9/15/2022, 8:26:56 PM)

14.3

+0.03 (+0.21%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap368.63M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 11.44
Fwd PE 29.65
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.53
PEG (5Y)0.61
Profitability
Industry RankSector Rank
ROA 7.19%
ROE 10.69%
ROCE
ROIC
ROICexc
ROICexgc
OM 44.54%
PM (TTM) 17.09%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.83
Quick Ratio 0.83
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-36.59%
EPS 3Y0.61%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.2%
Revenue growth 3Y5.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y