ASX:RDH

Stock Analysis Report

Executive Summary

RedHill Education Limited engages in the various education businesses in Australia.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.

Share Price & News

How has RedHill Education's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

RDH

5.6%

AU Consumer Services

1.7%

AU Market


1 Year Return

-42.3%

RDH

28.4%

AU Consumer Services

10.3%

AU Market

Return vs Industry: RDH underperformed the Australian Consumer Services industry which returned 28.4% over the past year.

Return vs Market: RDH underperformed the Australian Market which returned 10.3% over the past year.


Shareholder returns

RDHIndustryMarket
7 Day-1.0%5.6%1.7%
30 Day-19.4%7.4%-0.4%
90 Day2.3%-9.3%-0.1%
1 Year-41.4%-42.3%32.2%28.4%16.7%10.3%
3 Year149.9%139.8%-17.3%-25.8%36.7%18.4%
5 Year62.7%56.1%-17.0%-32.4%50.9%16.9%

Price Volatility Vs. Market

How volatile is RedHill Education's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RedHill Education undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RDH (A$1.99) is trading below our estimate of fair value (A$5.92)

Significantly Undervalued: RDH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RDH is poor value based on its PE Ratio (40.6x) compared to the Consumer Services industry average (17.7x).

PE vs Market: RDH is poor value based on its PE Ratio (40.6x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: RDH is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: RDH is overvalued based on its PB Ratio (3.5x) compared to the AU Consumer Services industry average (1.7x).


Next Steps

Future Growth

How is RedHill Education forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

35.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDH's forecast earnings growth (35.2% per year) is above the savings rate (2.3%).

Earnings vs Market: RDH's earnings (35.2% per year) are forecast to grow faster than the Australian market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RDH's revenue (10.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: RDH's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RDH's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has RedHill Education performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RDH's earnings have declined by -6.8% per year over the past 5 years.

Accelerating Growth: RDH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RDH had negative earnings growth (-57.1%) over the past year, making it difficult to compare to the Consumer Services industry average (0.6%).


Return on Equity

High ROE: RDH's Return on Equity (8.7%) is considered low.


Return on Assets

ROA vs Industry: RDH's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: RDH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is RedHill Education's financial position?


Financial Position Analysis

Short Term Liabilities: RDH's short term assets (A$20.1M) exceeds its short term liabilities (A$18.8M)

Long Term Liabilities: RDH's short term assets (20.1M) exceeds its long term liabilities (2.3M)


Debt to Equity History and Analysis

Debt Level: RDH is debt free.

Reducing Debt: RDH has not had any debt for past 5 years.

Debt Coverage: RDH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RDH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RDH has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RDH's debt is covered by short term assets.


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%2.5%markettop25%5.6%industryaverage2.4%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RDH's dividend (2.01%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: RDH's dividend (2.01%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: Whilst dividend payments have been stable, RDH has been paying a dividend for less than 10 years.

Growing Dividend: RDH's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.6%), RDH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDH's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Glenn Elith 0

7.4yrs

Tenure

AU$527,384

Compensation

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 served as its Chief Financial Officer si ...


CEO Compensation Analysis

Compensation vs. Market: Glenn's total compensation ($USD359.92K) is about average for companies of similar size in the Australian market ($USD257.55K).

Compensation vs Earnings: Glenn's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.4yrs

Average Tenure

Experienced Management: RDH's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

Experienced Board: RDH's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$93,23305 Sep 19
Perpetual Limited
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Max PriceAU$3.10
BuyAU$1,372,18305 Sep 19
Perpetual Limited
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BuyAU$45,54516 May 19
Acorn Capital Limited
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Max PriceAU$2.02
SellAU$1,045,31001 May 19
Pengana Capital Ltd.
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Shares464,755
Max PriceAU$2.69
BuyAU$260,85815 Mar 19
Acorn Capital Limited
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Shares100,000
Max PriceAU$2.61
BuyAU$16,94325 Jan 19
UBS Asset Management
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Shares6,720
Max PriceAU$2.55
SellAU$1,056,39225 Jan 19
UBS Asset Management
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Shares406,395
Max PriceAU$2.65
BuyAU$1,028,00614 Dec 18
Pendal Group Limited
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Shares410,442
Max PriceAU$3.14
BuyAU$482,04113 Nov 18
Pendal Group Limited
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Shares149,389
Max PriceAU$3.38
SellAU$1,625,00029 Oct 18
Regal Funds Management Pty Limited
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Shares500,000
Max PriceAU$3.25

Ownership Breakdown


Management Team

  • Lisa Jones

    Company Secretary

    • Tenure: 2.1yrs
  • Michael Fahey

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Glenn Elith

    CEO, MD & Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$527.38k
  • David Leslie

    General Manager of Marketing

    • Tenure: 0yrs
  • Ruby Biscuit

    General Manager of Technology & Design

    • Tenure: 0.8yrs

Board Members

  • Stephen Heath (52yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Bill Beerworth (73yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$160.00k
  • Sandra Hook

    Non-Executive Director

    • Tenure: 0.08yrs
  • Will Deane

    Independent Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: AU$95.00k
  • Glenn Elith

    CEO, MD & Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$527.38k

Company Information

RedHill Education Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RedHill Education Limited
  • Ticker: RDH
  • Exchange: ASX
  • Founded: 2006
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$63.173m
  • Shares outstanding: 30.82m
  • Website: https://www.redhilleducation.com

Number of Employees


Location

  • RedHill Education Limited
  • 7 Kelly Street
  • Level 2
  • Ultimo
  • New South Wales
  • 2007
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2010
RDHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2010

Biography

RedHill Education Limited engages in the various education businesses in Australia. It operates in three segments: Technology & Design, Greenwich, and Go Study. The Technology & Design segment provides fac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 10:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.