TSX:MBA

Stock Analysis Report

Executive Summary

CIBT Education Group Inc., through its subsidiaries, operates as an education and student housing investment company.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MBA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.6%

MBA

-0.8%

CA Consumer Services

-4.8%

CA Market


1 Year Return

-8.8%

MBA

0.6%

CA Consumer Services

0.1%

CA Market

Return vs Industry: MBA underperformed the Canadian Consumer Services industry which returned 0.6% over the past year.

Return vs Market: MBA underperformed the Canadian Market which returned 0.1% over the past year.


Shareholder returns

MBAIndustryMarket
7 Day-1.6%-0.8%-4.8%
30 Day-13.9%-2.6%-3.2%
90 Day-6.1%-2.5%-1.0%
1 Year-8.8%-8.8%0.9%0.6%3.3%0.1%
3 Year-6.1%-6.1%61.0%47.9%12.9%2.7%
5 Year110.2%110.2%133.5%94.3%29.2%10.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MBA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MBA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MBA is poor value based on its PE Ratio (33.7x) compared to the Consumer Services industry average (26x).

PE vs Market: MBA is poor value based on its PE Ratio (33.7x) compared to the Canadian market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: MBA is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MBA is good value based on its PB Ratio (0.9x) compared to the CA Consumer Services industry average (1.2x).


Next Steps

Future Growth

How is CIBT Education Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

59.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBA's forecast earnings growth (59.8% per year) is above the savings rate (1.4%).

Earnings vs Market: MBA's earnings (59.8% per year) are forecast to grow faster than the Canadian market (9.8% per year).

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

Revenue vs Market: MBA's revenue (9.2% per year) is forecast to grow faster than the Canadian market (4.7% per year).

High Growth Revenue: MBA's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MBA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CIBT Education Group performed over the past 5 years?

38.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBA has a large one-off gain of CA$14.8M impacting its November 30 2019 financial results.

Growing Profit Margin: MBA's current net profit margins (2%) are lower than last year (26.2%).


Past Earnings Growth Analysis

Earnings Trend: MBA has become profitable over the past 5 years, growing earnings by 38.1% per year.

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

Earnings vs Industry: MBA had negative earnings growth (-93.1%) over the past year, making it difficult to compare to the Consumer Services industry average (20.1%).


Return on Equity

High ROE: MBA's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is CIBT Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: MBA's short term assets (CA$54.4M) do not cover its short term liabilities (CA$117.2M).

Long Term Liabilities: MBA's short term assets (CA$54.4M) do not cover its long term liabilities (CA$100.9M).


Debt to Equity History and Analysis

Debt Level: MBA's debt to equity ratio (77.3%) is considered high.

Reducing Debt: MBA's debt to equity ratio has increased from 4.2% to 77.3% over the past 5 years.

Debt Coverage: MBA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MBA's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet

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

Debt Coverage by Assets: MBA's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MBA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MBA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MBA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MBA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MBA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Toby Chu (58yo)

25.8yrs

Tenure

CA$812,722

Compensation

Mr. Yam-Chung Chu, also known as Toby, has been the Chief Executive Officer and President of CIBT Education Group Inc. since May 11, 1994. Mr. Chu Founded CIBT School of Business & Technology Corp., a subs ...


CEO Compensation Analysis

Compensation vs Market: Toby's total compensation ($USD610.96K) is above average for companies of similar size in the Canadian market ($USD156.06K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Toby Chu
Chairman25.8yrsCA$812.72k11.1% CA$5.1m
Dennis Huang
CFO, Executive VP & Corporate Secretary9.7yrsCA$239.65kno data
Victor Tesan
President of Sprott Shaw College3.1yrsCA$491.57kno data
Tim Leong
Vice President of Finance & Accounting9.7yrsCA$96.00kno data
Maggie Harvie
Executive Vice President of Sprott Shaw College0yrsno datano data
Alvin Chu
CEO & President of IRIX0yrsCA$120.58kno data
Steve Sohn
President of Sprott Shaw Language College3.1yrsCA$102.00kno data
Patrick Dang
President of Sprott Shaw College International3.1yrsCA$150.74kno data

6.4yrs

Average Tenure

58yo

Average Age

Experienced Management: MBA's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Toby Chu
Chairman25.8yrsCA$812.72k11.1% CA$5.1m
Prithep Sosothikul
Member of Advisory Board11.1yrsno datano data
Shane Weir
Independent Director11.2yrsCA$41.51k3.61% CA$1.7m
Tony David
Independent Director21.6yrsCA$38.86k0.96% CA$445.4k
Troy Rice
Independent Director14.3yrsCA$44.16k0.59% CA$272.9k
Guo Yiqing
Member of Advisory Board4.5yrsno datano data
May Hsu
Independent Director & Member of Advisory Board2.1yrsCA$38.86k2.27% CA$1.0m
Derek Yiyi Feng
Independent Director8.6yrsCA$38.86k0.13% CA$62.0k
Morris Chen
Independent Director1.8yrsCA$13.26k0.73% CA$337.0k

8.6yrs

Average Tenure

59yo

Average Age

Experienced Board: MBA's board of directors are considered experienced (8.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MBA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CIBT Education Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CIBT Education Group Inc.
  • Ticker: MBA
  • Exchange: TSX
  • Founded: 1986
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: CA$46.215m
  • Shares outstanding: 74.54m
  • Website: https://www.cibt.net

Number of Employees


Location

  • CIBT Education Group Inc.
  • 777 West Broadway
  • Suite 1200
  • Vancouver
  • British Columbia
  • V5Z 4J7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBAI.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 1988
MBATSX (The Toronto Stock Exchange)YesCommon SharesCACADOct 1988

Biography

CIBT Education Group Inc., through its subsidiaries, operates as an education and student housing investment company. The company engages in education, media communications, and real estate development businesses. It offers accredited programs, which include general English, college pathway, business English, medical English, English teacher training, summer camp, automotive technical training, English teacher preparation, accounting, and IELTS test preparation programs, as well as junior and high school preparation programs for overseas study, and other career/vocational training. The company also provides private career and technical training diplomas and certificates in health care, tourism, hospitality, business, administrative, technical trades, and international studies. In addition, it recruits international students and on-ground concierge services for various kindergarten, primary and secondary schools, universities, and colleges in North America; and offers Web design and advertising services to the real estate industry. Further, it invests in and manages education related real estate projects, such as student hotels, serviced apartments, and education super centers in Canada. The company was formerly known as Capital Alliance Group Inc. and changed its name to CIBT Education Group Inc. in November 2007. CIBT Education Group Inc. was founded in 1986 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:54
End of Day Share Price2020/02/26 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.