RISE Education Cayman Ltd (REDU) Fundamental Analysis & Valuation

NASDAQ:REDU • US76761L1026

Current stock price

3.41
-3.74 (-52.31%)
At close:
3.02
-0.39 (-11.44%)
After Hours:

This REDU fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

0

1. REDU Profitability Analysis

1.1 Basic Checks

  • REDU had negative earnings in the past year.
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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3

2. REDU Health Analysis

2.1 Basic Checks

  • REDU has about the same amout of shares outstanding than it did 1 year ago.
  • REDU has a worse debt/assets ratio than last year.
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

  • 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.
  • 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

  • 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 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. REDU Growth Analysis

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.
  • REDU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.60% yearly.
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

  • 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.
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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0

4. REDU Valuation Analysis

4.1 Price/Earnings Ratio

  • REDU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • A Price/Forward Earnings ratio of 35.44 indicates a quite expensive valuation of REDU.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, REDU is valued a bit more expensive.
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. REDU Dividend Analysis

5.1 Amount

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

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REDU Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis 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.