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RedHill Education

ASX:RDH
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RDH
ASX
A$95M
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

RedHill Education Limited engages in the various education businesses in Australia. The last earnings update was 204 days ago. More info.


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RDH Share Price and Events
Price Volatility
RDH
Industry
5yr Volatility vs Market

RDH Value

 Is RedHill Education undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RedHill Education to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RedHill Education.

ASX:RDH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:RDH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.8%
Equity Risk Premium S&P Global 7.2%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.681 (1 + (1- 30%) (0.01%))
0.681
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.77% + (0.8 * 7.23%)
8.55%

Discounted Cash Flow Calculation for ASX:RDH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for RedHill Education is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:RDH DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (AUD, Millions) 10.10 8.60 10.15 11.87 13.77
Source Analyst x1 Analyst x1 Extrapolated @ (18%, capped from 24.25%) Extrapolated @ (17%, capped from 24.25%) Extrapolated @ (16%, capped from 24.25%)
Present Value
Discounted (@ 8.55%)
9.30 7.30 7.93 8.55 9.14
Present value of next 5 years cash flows A$42
ASX:RDH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= A$14 × (1 + 2.77%) ÷ (8.55% – 2.77%)
A$245
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= A$245 ÷ (1 + 8.55%)5
A$162
ASX:RDH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= A$42 + A$162
A$205
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$205 / 31
A$6.67
ASX:RDH Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$6.67
Current discount Discount to share price of A$3.20
= -1 x (A$3.20 - A$6.67) / A$6.67
52.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price RedHill Education is available for.
Intrinsic value
>50%
Share price is A$3.2 vs Future cash flow value of A$6.67
Current Discount Checks
For RedHill Education to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RedHill Education's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • RedHill Education's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RedHill Education's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RedHill Education's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RDH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in AUD A$0.10
ASX:RDH Share Price ** ASX (2018-07-23) in AUD A$3.2
Australia Consumer Services Industry PE Ratio Median Figure of 14 Publicly-Listed Consumer Services Companies 14.32x
Australia Market PE Ratio Median Figure of 625 Publicly-Listed Companies 17.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RedHill Education.

ASX:RDH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:RDH Share Price ÷ EPS (both in AUD)

= 3.2 ÷ 0.10

31.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RedHill Education is overvalued based on earnings compared to the AU Consumer Services industry average.
  • RedHill Education is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does RedHill Education's expected growth come at a high price?
Raw Data
ASX:RDH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
32.5%per year
Australia Consumer Services Industry PEG Ratio Median Figure of 9 Publicly-Listed Consumer Services Companies 0.88x
Australia Market PEG Ratio Median Figure of 389 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

ASX:RDH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.88x ÷ 32.5%

0.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RedHill Education is good value based on expected growth next year.
Price based on value of assets
What value do investors place on RedHill Education's assets?
Raw Data
ASX:RDH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in AUD A$0.51
ASX:RDH Share Price * ASX (2018-07-23) in AUD A$3.2
Australia Consumer Services Industry PB Ratio Median Figure of 20 Publicly-Listed Consumer Services Companies 2.69x
Australia Market PB Ratio Median Figure of 1,794 Publicly-Listed Companies 1.97x
ASX:RDH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:RDH Share Price ÷ Book Value per Share (both in AUD)

= 3.2 ÷ 0.51

6.32x

* Primary Listing of RedHill Education.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RedHill Education is overvalued based on assets compared to the AU Consumer Services industry average.
X
Value checks
We assess RedHill Education's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. RedHill Education has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RDH Future Performance

 How is RedHill Education expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
32.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RedHill Education expected to grow at an attractive rate?
  • RedHill Education's earnings growth is expected to exceed the low risk savings rate of 2.8%.
Growth vs Market Checks
  • RedHill Education's earnings growth is expected to exceed the Australia market average.
  • RedHill Education's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:RDH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RDH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 32.5%
ASX:RDH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 15.1%
Australia Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 16.3%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 8.3%
Australia Market Earnings Growth Rate Market Cap Weighted Average 12%
Australia Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:RDH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RDH Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-06-30 62 10 5 1
2018-06-30 55 9 4 1
ASX:RDH Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2017-12-31 49 8 3
2017-09-30 45 6 2
2017-06-30 41 5 2
2017-03-31 38 4 1
2016-12-31 34 3 0
2016-09-30 31 2 0
2016-06-30 28 0 0
2016-03-31 26 0 1
2015-12-31 24 0 1
2015-09-30 24 2 1
2015-06-30 23 3 2
2015-03-31 22 3 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RedHill Education's earnings are expected to grow significantly at over 20% yearly.
  • RedHill Education's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RDH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from RedHill Education Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RDH Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-06-30 0.16 0.16 0.16 1.00
2018-06-30 0.12 0.12 0.12 1.00
ASX:RDH Past Financials Data
Date (Data in AUD Millions) EPS *
2017-12-31 0.10
2017-09-30 0.08
2017-06-30 0.06
2017-03-31 0.04
2016-12-31 0.01
2016-09-30 0.01
2016-06-30 0.01
2016-03-31 0.02
2015-12-31 0.03
2015-09-30 0.04
2015-06-30 0.05
2015-03-31 0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if RedHill Education will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess RedHill Education's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RedHill Education has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RDH Past Performance

  How has RedHill Education performed over the past 5 years?

  • RedHill Education's last earnings update was 204 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RedHill Education's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RedHill Education has delivered over 20% year on year earnings growth in the past 5 years.
  • RedHill Education's 1-year earnings growth exceeds its 5-year average (605.8% vs 44.7%)
  • RedHill Education's earnings growth has exceeded the AU Consumer Services industry average in the past year (605.8% vs 10.1%).
Earnings and Revenue History
RedHill Education's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RedHill Education Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RDH Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-12-31 49.36 3.04 8.16
2017-09-30 45.41 2.39 7.93
2017-06-30 41.47 1.74 7.70
2017-03-31 37.57 1.08 7.32
2016-12-31 33.67 0.43 6.93
2016-09-30 30.99 0.38 6.52
2016-06-30 28.32 0.33 6.11
2016-03-31 26.37 0.60 5.66
2015-12-31 24.41 0.88 5.21
2015-09-30 23.60 1.26 4.84
2015-06-30 22.79 1.65 4.48
2015-03-31 22.10 3.32 4.32
2014-12-31 21.41 4.99 4.17
2014-09-30 20.31 4.91 4.08
2014-06-30 19.22 4.82 3.99
2014-03-31 18.17 2.54 3.93
2013-12-31 17.12 0.26 3.88
2013-09-30 16.61 -0.31 3.86
2013-06-30 16.10 -0.87 3.85
2013-03-31 15.76 -4.38 3.87
2012-12-31 15.41 -7.89 3.89
2012-09-30 14.95 -8.14 3.90
2012-06-30 14.48 -8.38 3.90
2012-03-31 14.44 -5.66 4.02
2011-12-31 14.40 -2.94 4.14
2011-09-30 14.21 -2.41 4.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RedHill Education has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RedHill Education used its assets less efficiently than the AU Consumer Services industry average last year based on Return on Assets.
  • RedHill Education's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess RedHill Education's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RedHill Education has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RDH Health

 How is RedHill Education's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RedHill Education's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RedHill Education is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RedHill Education's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of RedHill Education's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1736.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RedHill Education Company Filings, last reported 6 months ago.

ASX:RDH Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2017-12-31 15.33 0.01 9.09
2017-09-30 15.33 0.01 9.09
2017-06-30 14.48 0.07 6.37
2017-03-31 14.48 0.07 6.37
2016-12-31 12.74 0.06 3.55
2016-09-30 12.74 0.06 3.55
2016-06-30 12.71 0.11 4.91
2016-03-31 12.71 0.11 4.91
2015-12-31 12.30 0.15 2.96
2015-09-30 12.30 0.15 2.96
2015-06-30 12.32 0.20 6.71
2015-03-31 12.32 0.20 6.71
2014-12-31 11.42 0.13 6.49
2014-09-30 11.42 0.13 6.49
2014-06-30 10.66 0.16 6.03
2014-03-31 10.66 0.16 6.03
2013-12-31 6.38 0.00 4.22
2013-09-30 6.38 0.00 4.22
2013-06-30 5.79 0.00 3.96
2013-03-31 5.79 0.00 3.96
2012-12-31 6.08 0.00 2.95
2012-09-30 6.08 0.00 2.95
2012-06-30 6.66 0.00 3.21
2012-03-31 6.66 0.00 3.21
2011-12-31 14.01 0.00 3.87
2011-09-30 14.01 0.00 3.87
  • RedHill Education's level of debt (0.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 0.1% today).
  • Debt is well covered by operating cash flow (64300%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 2327.5x coverage).
X
Financial health checks
We assess RedHill Education's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RedHill Education has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RDH Dividends

 What is RedHill Education's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.25%
Current annual income from RedHill Education dividends. Estimated to be 2.19% next year.
If you bought A$2,000 of RedHill Education shares you are expected to receive A$25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RedHill Education's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.4%).
  • RedHill Education's dividend is below the markets top 25% of dividend payers in Australia (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:RDH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
Australia Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 3.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 499 Stocks 4.1%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.3%
Australia Bottom 25% Dividend Yield 25th Percentile 2.4%
Australia Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:RDH Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2019-06-30 0.07 1.00
2018-06-30 0.05 1.00
ASX:RDH Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2018-02-20 0.040 1.437
2017-09-26 0.020 1.010
2017-08-24 0.020 1.292

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RedHill Education is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • RedHill Education is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of RedHill Education's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of RedHill Education's dividends as it is not paying a notable for Australia.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess RedHill Education's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RedHill Education afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RedHill Education has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RDH Management

 What is the CEO of RedHill Education's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Glenn Elith, image provided by Google.
Glenn Elith
COMPENSATION A$494,616
TENURE AS CEO 6.2 years
CEO Bio

Mr. Glenn Elith, B Bus (UTS), CA has been the Chief Executive Officer, Managing Director and Executive Director of Redhill Education Limited since May 11, 2012 and also as its Chief Financial Officer since January 9, 2012. Mr. Elith served as a Company Secretary of Redhill Education Limited from July 25, 2017 to September 21, 2017. He served as an Acting Chief Executive Officer of Redhill Education Limited from March 2012 to May 11, 2012 and also served as its Company Secretary from January 9, 2012 to July 2012. He has worked at large organisations including Lion Nathan (now, Lion Pty Ltd) and George Weston Foods and at high-growth entrepreneurial businesses including specialty retailer Macro Wholefoods Market (now, owned by Woolworths Limited). He have broad finance experience in a number of industries including start-ups. He is a Chartered Accountant. He holds B.Bus from UTS.

CEO Compensation
  • Glenn's compensation has been consistent with company performance over the past year.
  • Glenn's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure of the RedHill Education management team in years:

2.8
Average Tenure
  • The tenure for the RedHill Education management team is about average.
Management Team

Glenn Elith

TITLE
CEO, MD
COMPENSATION
A$495K
TENURE
6.2 yrs

Gabriel Providel

TITLE
General Manager of Technology & Design Division
TENURE
2.8 yrs

Simon Costain

TITLE
General Manager of Sales & Marketing
TENURE
4.8 yrs

Orla Bennet

TITLE
Group Finance Controller
TENURE
2.5 yrs

Lisa Jones

TITLE
Company Secretary
TENURE
0.8 yrs

Raman Nambiar

TITLE
General Manager of Coder Factory Academy
TENURE
2.5 yrs

Mark Ashbridge

TITLE
General Manager of the Left Bank
TENURE
4.7 yrs

Shin Shimizu

TITLE
General Manager of Victorian Operations
TENURE
3.1 yrs

Gizelle Rezende

TITLE
General Manager of Greenwich English College and Greenwich Management College
TENURE
2.2 yrs
Board of Directors Tenure

Average tenure of the RedHill Education board of directors in years:

6.7
Average Tenure
  • The tenure for the RedHill Education board of directors is about average.
Board of Directors

Bill Beerworth

TITLE
Non-Executive Chairman
COMPENSATION
A$125K
AGE
72

Glenn Elith

TITLE
CEO, MD
COMPENSATION
A$495K
TENURE
6.2 yrs

Chris Clark

TITLE
Independent Non-Executive Director
COMPENSATION
A$65K
TENURE
6.7 yrs

Will Deane

TITLE
Independent Non-Executive Director
COMPENSATION
A$85K
TENURE
12 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess RedHill Education's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RedHill Education has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RDH News

External News
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Simply Wall St News

Should You Buy RedHill Education Limited (ASX:RDH) At AU$03.04?

Less-covered, small caps tend to present more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing? … So, could the stock still be trading at a low price relative to its actual value. … Let’s take a look at RedHill Education’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Should You Be Tempted To Sell RedHill Education Limited (ASX:RDH) At Its Current PE Ratio?

and want to better understand how you can grow your money by investing in RedHill Education Limited (ASX:RDH). … RedHill Education Limited (ASX:RDH) is trading with a trailing P/E of 29.9x, which is higher than the industry average of 14.3x. … See our latest analysis for RedHill Education

Simply Wall St -

Is RedHill Education Limited (ASX:RDH) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RDH Price per share = A$2.7 Earnings per share = A$0.1 ∴ Price-Earnings Ratio = A$2.7 ÷ A$0.1 = 26.9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … RDH’s P/E of 26.9x is higher than its industry peers (13.6x), which implies that each dollar of RDH’s earnings is being overvalued by investors. … For example, if you are inadvertently comparing riskier firms with RDH, then RDH’s P/E would naturally be higher than its peers since investors would reward its lower risk with a higher price.

Simply Wall St -

What Do Expectations Tell Us About RedHill Education Limited's (ASX:RDH) Margins In The Years Ahead?

To help investors get a top level understanding, this article will interpret RedHill Education's margin performance to help recognise the underlying make-up of revenue and expenses that is responsible for driving future earnings expectations and what it means for RDH's returns relative to its competitors. … Margin Calculation for RDH Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 3.04 Million ÷ 49.36 Million = 6.16% There has been an expansion in RedHill Education's margin over the past five years, with average net income growth of 42.22% outstripping average revenue growth of 19.95%, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Based on future expectations, RDH's profit margin will continue to expand, with annual revenue growth tipped at 15.14% and a forecasted 32.52% in annual net income growth.

Simply Wall St -

Should You Expect RedHill Education Limited (ASX:RDH) To Continue Delivering An ROE Of 19.84%?

Check out our latest analysis for RedHill Education Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of RedHill Education’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of RedHill Education’s equity capital deployed. … Since RedHill Education’s return covers its cost in excess of 11.29%, its use of equity capital is efficient and likely to be sustainable.

Simply Wall St -

Top Growth Stocks To Buy Now

Stocks such as RedHill Education and MNF Group are considered to be high growth in terms of how much they’re expected to earn and return to shareholders, according to the market. … ASX:RDH Future Profit Mar 22nd 18 MNF Group Limited (ASX:MNF) MNF Group Limited provides voice, data, and cloud based communication and communication enablement services to residential, business, government, and wholesale customers in Australia and internationally. … ASX:BAT Future Profit Mar 22nd 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

RedHill Education Limited (ASX:RDH): Ex-Dividend Is Coming In 3 Days, Should You Buy?

If you are interested in cashing in on RedHill Education Limited's (ASX:RDH) upcoming dividend of A$0.02 per share, you only have 3 days left to buy the shares before its ex-dividend date, 07 March 2018, in time for dividends payable on the 03 April 2018. … View our latest analysis for RedHill Education 5 questions to ask before buying a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is its annual yield among the top 25% of dividend-paying companies? … ASX:RDH Historical Dividend Yield Mar 3rd 18 How does RedHill Education fare?

Simply Wall St -

Best ASX Growth Stocks

ASX:RDH Future Profit Feb 19th 18 MNF Group Limited (ASX:MNF) MNF Group Limited provides voice, data, and cloud based communication and communication enablement services to residential, business, government, and wholesale customers in Australia and internationally. … ASX:MNF Future Profit Feb 19th 18 Millennium Minerals Limited (ASX:MOY) Millennium Minerals Limited explores for, develops, mines, and processes gold properties in Australia. … ASX:MOY Future Profit Feb 19th 18 For more financially robust companies with high growth potential to enhance your portfolio, use our free platform to explore our interactive list of these stocks.

Simply Wall St -

Who Are RedHill Education Limited's (ASX:RDH) Major Shareholders?

Today, I will be analyzing RedHill Education Limited’s (ASX:RDH) recent ownership structure, an important but not-so-popular subject among individual investors. … Check out our latest analysis for RedHill Education ASX:RDH Ownership_summary Feb 13th 18 Institutional Ownership RDH's 34.72% institutional ownership seems enough to cause large share price movements in the case of significant share sell-off or acquisitions by institutions, particularly when there is a low level of public shares available on the market to trade. … Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital.

Simply Wall St -

Is RedHill Education Limited (ASX:RDH) A Sell At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for RDH Price per share = A$2.18 Earnings per share = A$0.057 ∴ Price-Earnings Ratio = A$2.18 ÷ A$0.057 = 38x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you accidentally compared lower growth firms with RDH, then RDH’s P/E would naturally be higher since investors would reward RDH’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with RDH, RDH’s P/E would again be higher since investors would reward RDH’s lower risk with a higher price as well.

Simply Wall St -

RDH Company Info

Map
Description

RedHill Education Limited engages in the various education businesses in Australia. The company operates in three segments: Technology & Design, English Language, and Student Agency. The Technology & Design segment operates the Academy of Information Technology, which provides face-to-face and online courses in information technology, digital design, interactive multimedia, and games and apps programming, as well as operates International School of Colour and Design that provides face-to-face and online learning in interior design and styling courses. The English Language segment operates Greenwich English College, which provides English language intensive courses, as well as vocational education and training programs for overseas students. The Student Agency segment operates the Go Study Australia, an international student recruitment agency that offers student recruitment services. RedHill Education Limited was founded in 2006 and is headquartered in Ultimo, Australia.

Details
Name: RedHill Education Limited
RDH
Exchange: ASX
Founded: 2006
A$95,061,661
30,665,052
Website: http://www.redhilleducation.com
Address: RedHill Education Limited
7 Kelly Street,
Level 2,
Ultimo,
New South Wales, 2007,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RDH Ordinary Shares Australian Securities Exchange AU AUD 21. Sep 2010
CHIA RDH Ordinary Shares Chi-X Australia AU AUD 21. Sep 2010
Number of employees
Current staff
Staff numbers
144
RedHill Education employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/23 07:47
End of day share price update: 2018/07/23 00:00
Last estimates confirmation: 2018/02/26
Last earnings update: 2017/12/31
Last annual earnings update: 2017/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.