BST:O2KC

Stock Analysis Report

Executive Summary

Raffles Education Corporation Limited, an investment holding company, provides education and related services in ASEAN, North Asia, South Asia, Australasia, and Europe.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: O2KC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

O2KC

-2.8%

DE Consumer Services

-6.8%

DE Market


1 Year Return

-7.0%

O2KC

12.3%

DE Consumer Services

6.5%

DE Market

Return vs Industry: O2KC underperformed the German Consumer Services industry which returned 12.3% over the past year.

Return vs Market: O2KC underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

O2KCIndustryMarket
7 Day5.3%-2.8%-6.8%
30 Day19.4%3.4%-3.7%
90 Day-1.2%9.1%-3.6%
1 Year-7.0%-7.0%14.1%12.3%9.8%6.5%
3 Year-62.5%-66.1%3.6%-2.1%6.8%-2.6%
5 Year-77.0%-80.0%-40.2%-55.3%12.5%-2.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate O2KC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate O2KC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: O2KC is good value based on its PE Ratio (1.8x) compared to the Consumer Services industry average (18x).

PE vs Market: O2KC is good value based on its PE Ratio (1.8x) compared to the German market (20x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate O2KC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: O2KC is good value based on its PB Ratio (0.2x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

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

17.1%

Forecasted Consumer Services 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 Raffles Education 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 Raffles Education performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: O2KC has a large one-off gain of SGD59.0M impacting its December 31 2019 financial results.

Growing Profit Margin: O2KC's current net profit margins (63.2%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: O2KC's earnings have grown by 4% per year over the past 5 years.

Accelerating Growth: O2KC's earnings growth over the past year (3264.2%) exceeds its 5-year average (4% per year).

Earnings vs Industry: O2KC earnings growth over the past year (3264.2%) exceeded the Consumer Services industry 38.3%.


Return on Equity

High ROE: O2KC's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Raffles Education's financial position?


Financial Position Analysis

Short Term Liabilities: O2KC's short term assets (SGD132.0M) exceed its short term liabilities (SGD131.3M).

Long Term Liabilities: O2KC's short term assets (SGD132.0M) do not cover its long term liabilities (SGD345.4M).


Debt to Equity History and Analysis

Debt Level: O2KC's debt to equity ratio (45.5%) is considered high.

Reducing Debt: O2KC's debt to equity ratio has reduced from 55.8% to 45.5% over the past 5 years.

Debt Coverage: O2KC's debt is not well covered by operating cash flow (1.8%).

Interest Coverage: O2KC's interest payments on its debt are not well covered by EBIT (0x coverage).


Balance Sheet

Inventory Level: O2KC has a high level of physical assets or inventory.

Debt Coverage by Assets: O2KC's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate O2KC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate O2KC'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 O2KC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if O2KC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: O2KC is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of O2KC'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?

14.3yrs

Average management tenure


CEO

Hua Seng Chew (65yo)

0

Mr. Hua Seng Chew is the Founder of Raffles Education Corporation Limited and serves as its Chairman of the Board and Chief Executive Officer. Mr. Chew has been Chairman and Non-Executive Director of Sitra ...


Leadership Team

NamePositionTenureCompensationOwnership
Hua Seng Chew
Chairman0yrsno data26.14% SGD19.9m
Gim Chung
Director of Raffles University Iskandar/Raffles American School0yrsno data7.44% SGD5.7m
Kah Ho
Chief Financial Officer17.1yrsno datano data
Ong How
Director of HR15.8yrsno datano data
Keloth Raj Kumar
Company Secretary12.8yrsno datano data
Lam Yan
Vice President of Indochina Operations and Chief Executive Officer of Raffles University Sri Lanka 0yrsno datano data
Graeme Britton
President of Raffles University Iskandar & VP of Raffles University System0yrsno datano data
Steve Rawlinson
President-Raffles University Sri Lanka and Principal-Raffles College of Design & Commerce - Sydney4.3yrsno datano data

14.3yrs

Average Tenure

Experienced Management: O2KC's management team is seasoned and experienced (14.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hua Seng Chew
Chairman0yrsno data26.14% SGD19.9m
Jun He
Non-Independent & Non-Executive Director1.3yrsno datano data
Cheng Lok Teo
Independent Non Executive Director11.3yrsno data0.026% SGD20.0k
Ying Chun Liu
Non-Independent Non-Executive Director0.3yrsno data2.86% SGD2.2m
How Teck Lim
Lead Independent Non Executive Director1.9yrsno datano data
Hui Tin Gan
Independent Non-Executive Director1.8yrsno datano data

1.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: O2KC'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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Raffles Education Corporation Limited
  • Ticker: O2KC
  • Exchange: BST
  • Founded: 1990
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: S$115.807m
  • Listing Market Cap: S$76.214m
  • Shares outstanding: 1.38b
  • Website: https://raffles.education

Number of Employees


Location

  • Raffles Education Corporation Limited
  • Raffles Education Square
  • 51 Merchant Road
  • Singapore
  • 58283
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RFLF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2002
NR7SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 2002
O2KCBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 2002
RFLF.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 20 ORDUSUSDNov 2008

Biography

Raffles Education Corporation Limited, an investment holding company, provides education and related services in ASEAN, North Asia, South Asia, Australasia, and Europe. It operates through Education, Education Facilities Rental Service, and Real Estate Investment & Development segments. The company provides degree, diploma, and full-time certificate programs in design and business-oriented disciplines, pre-tertiary education, and K12 curriculum. In addition, it operates Raffles University Iskandar; Tianjin University of Commerce Boustead College; Raffles American School that offers American K-12 education; and Oriental University City campus. Further, it engages in education facilities leasing and commercial leasing activities for supporting facilities; and real estate investment and development activities. Additionally, the company offers education supporting, and business and management consultancy services. It operates through a network of 22 colleges/universities in 20 cities across 12 countries. Raffles Education Corporation Limited was founded in 1990 and is based in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:00
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.