TSX:MBA

Stock Analysis Report

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Executive Summary

CIBT Education Group Inc., through its subsidiaries, operates as an education and student housing investment company in Canada and China. More Details


Snowflake Analysis

Proven track record and fair value.

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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MBA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

MBA

7.8%

CA Consumer Services

-0.2%

CA Market


1 Year Return

-5.8%

MBA

3.7%

CA Consumer Services

2.4%

CA Market

Return vs Industry: MBA underperformed the Canadian Consumer Services industry which returned -0.8% over the past year.

Return vs Market: MBA underperformed the Canadian Market which returned 1.5% over the past year.


Shareholder returns

MBAIndustryMarket
7 Day3.2%7.8%-0.2%
30 Day-7.1%7.9%2.8%
90 Day-5.8%10.0%15.1%
1 Year-5.8%-5.8%5.4%3.7%6.1%2.4%
3 Year-15.6%-15.6%29.4%23.8%14.7%3.8%
5 Year132.1%132.1%151.7%125.0%62.6%37.5%

Long-Term 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?

21.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MBA (CA$0.65) is trading above our estimate of fair value (CA$0.18)

Significantly Below Fair Value: MBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MBA is good value based on its PE Ratio (21.4x) compared to the XN Consumer Services industry average (26x).

PE vs Market: MBA is poor value based on its PE Ratio (21.4x) compared to the Canadian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: MBA is good value based on its PEG Ratio (0.5x)


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 (1.7x).


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?

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBA's forecast earnings growth (42.4% per year) is above the savings rate (1.5%).

Earnings vs Market: MBA's earnings (42.4% per year) are forecast to grow faster than the Canadian market (26.2% per year).

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

Revenue vs Market: MBA's revenue (7.4% per year) is forecast to grow slower than the Canadian market (8% per year).

High Growth Revenue: MBA's revenue (7.4% 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?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBA has a large one-off loss of CA$1.4M impacting its November 30 2020 financial results.

Growing Profit Margin: MBA's current net profit margins (3.7%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: MBA's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: MBA's earnings growth over the past year (46.3%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: MBA earnings growth over the past year (46.3%) exceeded the Consumer Services industry 10.6%.


Return on Equity

High ROE: MBA's Return on Equity (-2.2%) 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$76.9M) do not cover its short term liabilities (CA$222.2M).

Long Term Liabilities: MBA's short term assets (CA$76.9M) do not cover its long term liabilities (CA$102.1M).


Debt to Equity History and Analysis

Debt Level: MBA's debt to equity ratio (139.6%) is considered high.

Reducing Debt: MBA's debt to equity ratio has increased from 71.4% to 139.6% over the past 5 years.

Debt Coverage: MBA's debt is not well covered by operating cash flow (2.8%).

Interest Coverage: MBA's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Next Steps

Dividend

What is CIBT Education Group 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 recent payouts.

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

0.8yrs

Average management tenure


CEO

Toby Chu (59 yo)

26.67yrs

Tenure

CA$302,000

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 ($USD236.72K) is above average for companies of similar size in the Canadian market ($USD152.77K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yam-Chung Chu
Chairman26.67yrsCA$302.00k12.49%
CA$ 5.6m
Yu Ng
Senior VP of Corporate Finance0.75yrCA$194.20kno data
Victor Tesan
COO & President of Education Services0.75yrCA$751.11kno data
Dennis Huang
Executive VP0.75yrCA$405.45kno data
Maggie Harvie
Executive Vice President of Sprott Shaw Collegeno datano datano data
Alvin Chu
CEO & President of IRIXno dataCA$120.58kno data
Steve Sohn
President of Sprott Shaw Language College4yrsCA$102.00kno data

0.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MBA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yam-Chung Chu
Chairman26.67yrsCA$302.00k12.49%
CA$ 5.6m
Prithep Sosothikul
Member of Advisory Board12yrsno datano data
Shane Weir
Independent Director12.08yrsCA$28.65k4.13%
CA$ 1.8m
Tony David
Independent Director22.5yrsCA$28.65k1%
CA$ 445.4k
Troy Rice
Independent Director15.25yrsCA$44.80k0.61%
CA$ 272.9k
David Richardson
Member of Advisory Board1yrCA$14.03kno data
Guo Yiqing
Member of Advisory Board5.42yrsno datano data
May Hsu
Independent Director3yrsCA$28.65k1.6%
CA$ 713.4k
Derek Yiyi Feng
Independent Director9.5yrsCA$28.65k0.14%
CA$ 62.0k
Morris Chen
Independent Director2.75yrsCA$13.45k0.76%
CA$ 337.0k

7.5yrs

Average Tenure

61yo

Average Age

Experienced Board: MBA's board of directors are considered experienced (7.5 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$44.481m
  • Shares outstanding: 71.74m
  • Website: https://www.cibt.net

Number of Employees


Location

  • CIBT Education Group Inc.
  • 777 Broadway West
  • 12th Floor
  • 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 in Canada and China. The company engages in education, media communications, and real es...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 23:11
End of Day Share Price2021/01/25 00:00
Earnings2020/11/30
Annual Earnings2020/08/31


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.