RISE Education Cayman Ltd (REDU) Stock Fundamental Analysis

NASDAQ:REDU • US76761L1026

3.41
-3.74 (-52.31%)
At close: Jun 10, 2022
3.02
-0.39 (-11.44%)
After Hours: 6/10/2022, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

2

Taking everything into account, REDU scores 2 out of 10 in our fundamental rating. REDU was compared to 75 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of REDU have multiple concerns. REDU is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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 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 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 2016 2017 2018 2019 2020 2021 0 20 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • Compared to 1 year ago, REDU has about the same amount of shares outstanding.
  • Compared to 1 year ago, REDU has a worse debt to assets ratio.
REDU Yearly Shares OutstandingREDU Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

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 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 2016 2017 2018 2019 2020 2021 0 200M -200M 400M 600M

2.3 Liquidity

  • REDU has a Current Ratio of 3.56. This indicates that REDU is financially healthy and has no problem in meeting 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 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 2016 2017 2018 2019 2020 2021 500M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

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%.
  • The Revenue has grown by 9.20% in the past year. This is quite good.
  • 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 Q2Q%-17854%
Revenue 1Y (TTM)9.2%
Revenue growth 3Y-0.37%
Revenue growth 5Y12.6%
Sales Q2Q%55.55%

3.2 Future

  • Based on estimates for the next years, REDU will show a small growth in Earnings Per Share. The EPS will grow by 6.30% on average per year.
  • 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

  • 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 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 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 2 3

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Find the best growth stocksShow best growing peers

0

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.
  • When comparing the Price/Forward Earnings ratio of REDU to the average of the S&P500 Index (27.96), we can say REDU is valued slightly more expensively.
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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

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 IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-18
Earnings (Next)N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap385.43M
Revenue(TTM)1.20B
Net Income(TTM)-248.49M
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
Graham NumberN/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
ROICexgc growth 3Y0%
ROICexgc 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

RISE Education Cayman Ltd / REDU FAQ

Can you provide the ChartMill fundamental rating for RISE Education Cayman Ltd?

ChartMill assigns a fundamental rating of 4 / 10 to REDU.


What is the valuation status for REDU stock?

ChartMill assigns a valuation rating of 2 / 10 to RISE Education Cayman Ltd (REDU). This can be considered as Overvalued.


What is the profitability of REDU stock?

RISE Education Cayman Ltd (REDU) has a profitability rating of 1 / 10.