DB:2CE

Stock Analysis Report

China Education Resources

Executive Summary

China Education Resources Inc. provides education resources and services for students, teachers, parents, and school administrators primarily in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2CE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-31.6%

2CE

3.3%

DE Consumer Services

-0.6%

DE Market


1 Year Return

-71.7%

2CE

1.9%

DE Consumer Services

-20.9%

DE Market

Return vs Industry: 2CE underperformed the German Consumer Services industry which returned -0.6% over the past year.

Return vs Market: 2CE underperformed the German Market which returned -20.4% over the past year.


Shareholder returns

2CEIndustryMarket
7 Day-31.6%3.3%-0.6%
30 Day-62.9%-7.9%-16.6%
90 Day-73.5%-7.3%-26.0%
1 Year-71.7%-71.7%4.0%1.9%-18.6%-20.9%
3 Year-94.1%-94.1%-13.6%-17.0%-19.0%-25.8%
5 Yearn/a-43.4%-57.0%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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


In this section, we usually try to help investors determine whether China Education Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as China Education Resources 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 2CE’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 China Education Resources regulatory filings.
  • Explore potentially undervalued companies in the Consumer Services industry.

Future Growth

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

17.8%

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 China Education Resources 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 China Education Resources performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2CE is currently unprofitable.

Growing Profit Margin: 2CE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2CE is unprofitable, but has reduced losses over the past 5 years at a rate of 32.5% per year.

Accelerating Growth: Unable to compare 2CE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2CE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (42.5%).


Return on Equity

High ROE: 2CE has a negative Return on Equity (-116.36%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Education Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 2CE's short term assets ($8.2M) exceed its short term liabilities ($7.6M).

Long Term Liabilities: 2CE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 2CE's debt to equity ratio (295.8%) is considered high.

Reducing Debt: 2CE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: 2CE has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2CE's debt is covered by short term assets (assets are 4.3x debt).


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: Insufficient data to determine if 2CE has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 2CE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2CE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2CE'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 2CE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2CE'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 2CE'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?

14.5yrs

Average management tenure


CEO

Chengfeng Zhou (63yo)

12.5s

Tenure

US$140,768

Compensation

Mr. Chengfeng F. Zhou has been the Chief Executive Officer of China Education Resources, Inc. since October 4 , 2007. Mr. Zhou has served as President of Double Ocean Investments Inc. in Vancouver, British ...


CEO Compensation Analysis

Compensation vs Market: Chengfeng's total compensation ($USD99.09K) is below average for companies of similar size in the German market ($USD427.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chengfeng Zhou
Chairman & CEO12.5yrsUS$140.77k13.72% $106.6k
Tak Chi
CFO & Director8.58yrsUS$68.41kno data
Vivian Chen
Financial Director of China Operations and CFO of Todays Teachers Technology & Culture Ltdno dataUS$44.30kno data
Feng Yijie
President of Northern Education Books Ltd16.58yrsUS$7.26kno data
Guan Hai
President of Todays Teachers Technology & Culture Ltd17.67yrsUS$44.08kno data

14.5yrs

Average Tenure

Experienced Management: 2CE's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chengfeng Zhou
Chairman & CEO12.5yrsUS$140.77k13.72% $106.6k
Tak Chi
CFO & Director8.58yrsUS$68.41kno data
Wang Li
Independent Director18.08yrsno datano data
Lian Li
Independent Director3.33yrsUS$17.70k0.0044% $34.4

13.3yrs

Average Tenure

Experienced Board: 2CE's board of directors are seasoned and experienced ( 13.3 years average tenure).


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

China Education Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Education Resources Inc.
  • Ticker: 2CE
  • Exchange: DB
  • Founded:
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: CA$1.184m
  • Listing Market Cap: CA$776.608k
  • Shares outstanding: 47.36m
  • Website: https://www.chinaeducationresources.com

Location

  • China Education Resources Inc.
  • 515 West Pender Street
  • Suite 300
  • Vancouver
  • British Columbia
  • V6B 6H5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHNTSXV (TSX Venture Exchange)YesCommon SharesCACADApr 2000
CHNU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2000
2CEDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2000

Biography

China Education Resources Inc. provides education resources and services for students, teachers, parents, and school administrators primarily in the People’s Republic of China. It operates an education services portal, cersp.com that provides educational content, resources, and training programs to users. The company’s portal offers school platform that provides a link between a school with its teachers, students, and parents; online tutoring program, a platform developed for a teacher to provide online tutoring services through the Internet to students; and digital education products containing digital textbook tutorial materials and digital supplementary materials, such as lesson plans, course modules, and tests. It also develops and distributes educational textbooks and materials to bookstores and schools. China Education Resources Inc. 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 Analysis2020/04/06 00:58
End of Day Share Price2020/04/03 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.