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LAIX INC - ADR (LAIX) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:LAIX - ADR

3.1
-0.33 (-9.62%)
Last: 4/7/2022, 8:04:00 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to LAIX. LAIX was compared to 76 industry peers in the Diversified Consumer Services industry. The financial health of LAIX is average, but there are quite some concerns on its profitability. LAIX does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • LAIX had negative earnings in the past year.
LAIX Yearly Net Income VS EBIT VS OCF VS FCFLAIX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 -100M -200M -300M -400M -500M

1.2 Ratios

Industry RankSector Rank
ROA -26.97%
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
LAIX Yearly ROA, ROE, ROICLAIX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 0 100 -100 200 -200

1.3 Margins

Industry RankSector Rank
OM -10.58%
PM (TTM) -9.27%
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
LAIX Yearly Profit, Operating, Gross MarginsLAIX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 0 -200 -400 -600

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4

2. Health

2.1 Basic Checks

  • The number of shares outstanding for LAIX has been increased compared to 1 year ago.
  • LAIX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
LAIX Yearly Shares OutstandingLAIX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 200M 400M 600M
LAIX Yearly Total Debt VS Total AssetsLAIX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 200M 400M 600M 800M

2.2 Solvency

  • LAIX has an Altman-Z score of -9.28. This is a bad value and indicates that LAIX is not financially healthy and even has some risk of bankruptcy.
  • There is no outstanding debt for LAIX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -9.28
ROIC/WACCN/A
WACCN/A
LAIX Yearly LT Debt VS Equity VS FCFLAIX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 0 200M -200M -400M -600M

2.3 Liquidity

  • A Current Ratio of 0.20 indicates that LAIX may have some problems paying its short term obligations.
  • LAIX has a Quick Ratio of 0.20. This is a bad value and indicates that LAIX is not financially healthy enough and could expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 0.2
Quick Ratio 0.2
LAIX Yearly Current Assets VS Current LiabilitesLAIX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 114.21% over the past year.
  • The Revenue for LAIX has decreased by -13.96% in the past year. This is quite bad
  • LAIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 198.20% yearly.
EPS 1Y (TTM)114.21%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%121.97%
Revenue 1Y (TTM)-13.96%
Revenue growth 3Y80.42%
Revenue growth 5Y198.2%
Sales Q2Q%-33.38%

3.2 Future

  • Based on estimates for the next years, LAIX will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.84% on average per year.
  • The Revenue is expected to decrease by -13.75% on average over the next years. This is quite bad
EPS Next Y99.57%
EPS Next 2Y41.34%
EPS Next 3Y25.97%
EPS Next 5Y14.84%
Revenue Next Year-27.88%
Revenue Next 2Y-22.1%
Revenue Next 3Y-16.08%
Revenue Next 5Y-13.75%

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LAIX Yearly Revenue VS EstimatesLAIX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
LAIX Yearly EPS VS EstimatesLAIX Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 -50 -100 -150

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1

4. Valuation

4.1 Price/Earnings Ratio

  • LAIX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Also next year LAIX is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
LAIX Price Earnings VS Forward Price EarningsLAIX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA -13.56
LAIX Per share dataLAIX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4 -6 -8 -10

4.3 Compensation for Growth

  • A more expensive valuation may be justified as LAIX's earnings are expected to grow with 25.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.34%
EPS Next 3Y25.97%

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0

5. Dividend

5.1 Amount

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

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LAIX INC - ADR / LAIX FAQ

What is the ChartMill fundamental rating of LAIX INC - ADR (LAIX) stock?

ChartMill assigns a fundamental rating of 2 / 10 to LAIX.


What is the valuation status of LAIX INC - ADR (LAIX) stock?

ChartMill assigns a valuation rating of 0 / 10 to LAIX INC - ADR (LAIX). This can be considered as Overvalued.


Can you provide the profitability details for LAIX INC - ADR?

LAIX INC - ADR (LAIX) has a profitability rating of 1 / 10.


How financially healthy is LAIX INC - ADR?

The financial health rating of LAIX INC - ADR (LAIX) is 1 / 10.