RISE Education Cayman Ltd (REDU)
US76761L1026 - ADR
We assign a fundamental rating of 2 out of 10 to REDU. REDU was compared to 65 industry peers in the Diversified Consumer Services industry. REDU may be in some trouble as it scores bad on both profitability and health. REDU is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year REDU has reported negative net income.
In multiple years REDU reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: REDU reported negative operating cash flow in multiple years.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The number of shares outstanding for REDU remains at a similar level compared to 1 year ago.
Compared to 1 year ago, REDU has a worse debt to assets ratio.
2.2 Solvency
REDU has an Altman-Z score of 0.31. This is a bad value and indicates that REDU is not financially healthy and even has some risk of bankruptcy.
A Debt/Equity ratio of -1.22 indicates that REDU is not too dependend on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | -1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.31 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.56 indicates that REDU has no problem at all paying its short term obligations.
REDU has a Quick Ratio of 3.56. This indicates that REDU is financially healthy and has no problem in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 3.56 |
3. Growth
3.1 Past
REDU shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.56%.
Looking at the last year, REDU shows a quite strong growth in Revenue. The Revenue has grown by 9.20% in the last year.
Measured over the past years, REDU shows a quite strong growth in Revenue. The Revenue has been growing by 12.60% on average per year.
EPS 1Y (TTM)-87.56%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-17854%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-0.37%
Revenue growth 5Y12.6%
Revenue growth Q2Q55.55%
3.2 Future
The Earnings Per Share is expected to grow by 6.30% on average over the next years.
Based on estimates for the next years, REDU will show a very strong growth in Revenue. The Revenue will grow by 25.26% on average per year.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for REDU. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 35.44, REDU can be considered very expensive at the moment.
The average S&P500 Price/Forward Earnings ratio is at 20.88. REDU is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 35.44 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 49.39 |
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%
5. Dividend
5.1 Amount
REDU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RISE Education Cayman Ltd
NASDAQ:REDU (6/10/2022, 7:00:01 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap385.43M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 35.44 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -810.47% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | -1.57% | ||
| PM (TTM) | -3.98% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | -1.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.56 | ||
| Quick Ratio | 3.56 | ||
| 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)-87.56%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-72.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-0.37%
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