CNSX:CNI

Stock Analysis Report

Cloud Nine Education Group

Executive Summary

Cloud Nine Education Group Ltd. focuses on the licensing and sale of its proprietary digitally based English as a second language (ESL) curriculum in Canada and internationally.

Snowflake

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CNI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.8%

CNI

5.2%

CA Media

0.4%

CA Market


1 Year Return

n/a

CNI

21.7%

CA Media

7.1%

CA Market

Return vs Industry: Insufficient data to determine how CNI performed against the Canadian Media industry.

Return vs Market: Insufficient data to determine how CNI performed against the Canadian Market.


Shareholder returns

CNIIndustryMarket
7 Day-27.8%5.2%0.4%
30 Day116.7%5.8%2.8%
90 Day25.8%8.6%4.0%
1 Yearn/a26.3%21.7%10.7%7.1%
3 Yearn/a37.0%21.2%18.1%7.4%
5 Yearn/a27.9%1.8%26.1%7.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Cloud Nine Education Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Cloud Nine Education Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of CNI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Cloud Nine Education Group regulatory filings.
  • Explore potentially undervalued companies in the Media industry.

Future Growth

How is Cloud Nine Education Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.6%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cloud Nine Education Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cloud Nine Education Group performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNI has large one-off items impacting its financial results.

Growing Profit Margin: Insufficient data to determine if CNI's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: CNI is unprofitable, but has reduced losses over the past 5 years at a rate of 14.2% per year.

Accelerating Growth: Unable to compare CNI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNI is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-2.1%).


Return on Equity

High ROE: CNI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cloud Nine Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: CNI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CNI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CNI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CNI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: CNI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CNI has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CNI has less than a year of cash runway if free cash flow continues to grow at historical rates of 13.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CNI'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 CNI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNI'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 CNI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Al Larmour 0

2.1yrs

Tenure

CA$131,625

Compensation

Mr. Allan Larmour, also known as Al, P.Eng is Chief Executive Officer of Norsemont Capital Inc. and Interim President since June 7, 2017. Mr. Larmour has been Strategic Business Planning and Investment Con ...


CEO Compensation Analysis

Compensation vs Market: Al's total compensation ($USD99.33K) is about average for companies of similar size in the Canadian market ($USD135.84K).

Compensation vs Earnings: Al's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: CNI's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

57yo

Average Age

Experienced Board: CNI's board of directors are considered experienced (3.1 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

SellCA$1,93701 Aug 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,500
Max PriceCA$0.12
SellCA$1,95709 Jul 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares14,500
Max PriceCA$0.14
BuyCA$15,00029 May 19
Kulwant Sandher
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares200,000
Max PriceCA$0.075
SellCA$5,80013 May 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceCA$0.29
SellCA$4,80009 May 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceCA$0.24
SellCA$4,20002 May 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceCA$0.22
SellCA$3,09425 Apr 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares18,200
Max PriceCA$0.17
SellCA$1,70017 Apr 19
Peter Lee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceCA$0.17

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 33.1%.


Management Team

  • Al Larmour

    CEO, President & Director

    • Tenure: 2.1yrs
    • Compensation: CA$131.63k
  • Kulwant Sandher (57yo)

    CFO & Director

    • Tenure: 3.9yrs
  • Boris Mann

    Chief Technology Officer

    • Tenure: 3.2yrs

Board Members

  • Al Larmour

    CEO, President & Director

    • Tenure: 2.1yrs
    • Compensation: CA$131.63k
  • Kulwant Sandher (57yo)

    CFO & Director

    • Tenure: 3.9yrs
  • Dalton Larson (79yo)

    Independent Director

    • Tenure: 4.6yrs
  • Peter Lee (44yo)

    Director

    • Tenure: 0.3yrs
    • Compensation: CA$80.06k

Company Information

Cloud Nine Education Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cloud Nine Education Group Ltd.
  • Ticker: CNI
  • Exchange: CNSX
  • Founded: 2015
  • Industry: Publishing
  • Sector: Media
  • Market Cap: CA$3.273m
  • Shares outstanding: 16.79m
  • Website: https://c9eg.com

Number of Employees


Location

  • Cloud Nine Education Group Ltd.
  • 700 West Pender Street
  • Suite 610
  • Vancouver
  • British Columbia
  • V6C 1G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNICNSX (Canadian National Stock Exchange)YesCommon SharesCACADDec 2016

Biography

Cloud Nine Education Group Ltd. focuses on the licensing and sale of its proprietary digitally based English as a second language (ESL) curriculum in Canada and internationally. The company offers Cloud Ni ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:41
End of Day Share Price2019/11/14 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.