BST:6RE

Stock Analysis Report

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Executive Summary

RISE Education Cayman Ltd, through its subsidiaries, provides junior English language training services under the RISE brand name in China, Hong Kong, and Singapore.


Snowflake Analysis

Limited growth with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6RE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

6RE

-0.6%

DE Consumer Services

0.7%

DE Market


1 Year Return

-59.6%

6RE

9.2%

DE Consumer Services

3.9%

DE Market

Return vs Industry: 6RE underperformed the German Consumer Services industry which returned 8.9% over the past year.

Return vs Market: 6RE underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

6REIndustryMarket
7 Day-2.4%-0.6%0.7%
30 Day9.6%2.1%5.3%
90 Day-10.1%10.1%17.3%
1 Year-59.6%-59.6%11.0%9.2%6.2%3.9%
3 Yearn/a-5.4%-10.1%1.8%-6.2%
5 Yearn/a-43.8%-58.4%9.3%-5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

186.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 6RE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 6RE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 6RE is poor value based on its PE Ratio (186.7x) compared to the XE Consumer Services industry average (15.4x).

PE vs Market: 6RE is poor value based on its PE Ratio (186.7x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6RE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6RE is overvalued based on its PB Ratio (2.9x) compared to the XE Consumer Services industry average (2.4x).


Next Steps

Future Growth

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

19.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 6RE's forecast earnings growth is above the savings rate (0.2%).

Earnings vs Market: Insufficient data to determine if 6RE's earnings are forecast to grow faster than the German market

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

Revenue vs Market: 6RE's revenue (19% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 6RE's revenue (19% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6RE's Return on Equity is forecast to be high in 3 years time (26.7%)


Next Steps

Past Performance

How has RISE Education Cayman performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6RE has high quality earnings.

Growing Profit Margin: 6RE's current net profit margins (0.6%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 6RE has become profitable over the past 5 years, growing earnings by 30.3% per year.

Accelerating Growth: 6RE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6RE had negative earnings growth (-94.5%) over the past year, making it difficult to compare to the Consumer Services industry average (57.7%).


Return on Equity

High ROE: 6RE's Return on Equity (-0.6%) is considered low.


Next Steps

Financial Health

How is RISE Education Cayman's financial position?


Financial Position Analysis

Short Term Liabilities: 6RE's short term assets (CN¥996.4M) do not cover its short term liabilities (CN¥1.2B).

Long Term Liabilities: 6RE's short term assets (CN¥996.4M) exceed its long term liabilities (CN¥932.4M).


Debt to Equity History and Analysis

Debt Level: 6RE's debt to equity ratio (100.3%) is considered high.

Reducing Debt: Insufficient data to determine if 6RE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6RE's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6RE's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is RISE Education Cayman current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6RE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 6RE'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 6RE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6RE'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 6RE's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Lihong Wang (52yo)

0.50

Tenure

Ms. Lihong Wang serves as Chief Executive Officer at RISE Education Cayman Ltd since January, 2020. Ms. Wang has been Non-Executive Director of Huifu Payment Limited since November 1, 2019. She serves as a ...


Leadership Team

NamePositionTenureCompensationOwnership
Lihong Wang
CEO & Chairwoman0.50yrno datano data
Jiandong Lu
CFO & Director2.75yrsno datano data
Hui Tai
Chief Operating Officer0.25yrno datano data
Li Mei
Senior IR Directorno datano datano data
Xue Yuan
Senior Vice President of Academics12.75yrsno datano data

1.0yrs

Average Tenure

51yo

Average Age

Experienced Management: 6RE's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Lihong Wang
CEO & Chairwoman0.50yrno datano data
Jiandong Lu
CFO & Director2.75yrsno datano data
Jia Zhu
Director0.50yrno datano data
Yiding Sun
Vice Chairman0.50yrno data1.27% CN¥2.3m
Weili Hong
Independent Director1.83yrsno datano data
Zhongjue Chen
Director6.75yrsno datano data
Yong Chen
Independent Director2.75yrsno datano data
Haiping Yan
Independent Director1.83yrsno datano data
Jun Yan
Independent Director1.83yrsno datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 6RE's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

Company Information

RISE Education Cayman Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RISE Education Cayman Ltd
  • Ticker: 6RE
  • Exchange: BST
  • Founded: 2007
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$206.908m
  • Listing Market Cap: US$182.886m
  • Shares outstanding: 56.38m
  • Website: https://www.risecenter.com

Number of Employees


Location

  • RISE Education Cayman Ltd
  • Jia He Guo Xin Mansion
  • Room 101
  • Beijing
  • Beijing Province
  • 100062
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REDUNasdaqGM (Nasdaq Global Market)YesSPONSORED ADRUSUSDOct 2017
6REBST (Boerse-Stuttgart)YesSPONSORED ADRDEEUROct 2017

Biography

RISE Education Cayman Ltd, through its subsidiaries, provides junior English language training services under the RISE brand name in China, Hong Kong, and Singapore. The company offers a range of educational programs, services, and products, which primarily include educational courses, sale of course materials, franchise services, and study tours. It also provides educational consulting services. As of December 31, 2019, the company had a network of 472 learning centers comprising 89 self-owned centers and 383 franchised learning centers. RISE Education Cayman Ltd was founded in 2007 and is headquartered in Beijing, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:46
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.