DB:CML1

Stock Analysis Report

China Maple Leaf Educational Systems

Executive Summary

China Maple Leaf Educational Systems Limited, together with its subsidiaries, operates bilingual private schools and preschools in the People’s Republic of China and Canada.

Rewards

Trading at 79.1% below its fair value

Earnings are forecast to grow 13.9% per year

Earnings have grown 34.8% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has China Maple Leaf Educational Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CML1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

CML1

0.9%

DE Consumer Services

1.0%

DE Market


1 Year Return

-15.0%

CML1

13.5%

DE Consumer Services

15.7%

DE Market

Return vs Industry: CML1 underperformed the German Consumer Services industry which returned 13.5% over the past year.

Return vs Market: CML1 underperformed the German Market which returned 15.7% over the past year.


Shareholder returns

CML1IndustryMarket
7 Day2.1%0.9%1.0%
30 Day14.8%-1.0%1.0%
90 Day2.8%2.3%6.7%
1 Year-12.4%-15.0%15.4%13.5%19.3%15.7%
3 Year9.7%2.4%6.7%0.9%19.5%8.9%
5 Year255.2%219.6%-43.5%-58.7%36.9%18.3%

Price Volatility Vs. Market

How volatile is China Maple Leaf Educational Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Maple Leaf Educational Systems undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CML1 (€0.29) is trading below our estimate of fair value (€1.41)

Significantly Below Fair Value: CML1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CML1 is good value based on its PE Ratio (11.1x) compared to the Consumer Services industry average (13.8x).

PE vs Market: CML1 is good value based on its PE Ratio (11.1x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: CML1 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CML1 is good value based on its PB Ratio (1.8x) compared to the XE Consumer Services industry average (2.3x).


Next Steps

Future Growth

How is China Maple Leaf Educational Systems forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CML1's forecast earnings growth (13.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: CML1's earnings (13.9% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: CML1's earnings are forecast to grow, but not significantly.

Revenue vs Market: CML1's revenue (14.6% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: CML1's revenue (14.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CML1's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has China Maple Leaf Educational Systems performed over the past 5 years?

34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CML1 has high quality earnings.

Growing Profit Margin: CML1's current net profit margins (41.8%) are higher than last year (40.5%).


Past Earnings Growth Analysis

Earnings Trend: CML1's earnings have grown significantly by 34.8% per year over the past 5 years.

Accelerating Growth: CML1's earnings growth over the past year (21%) is below its 5-year average (34.8% per year).

Earnings vs Industry: CML1 earnings growth over the past year (21%) underperformed the Consumer Services industry 52.7%.


Return on Equity

High ROE: CML1's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Maple Leaf Educational Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CML1's short term assets (CN¥3.0B) exceed its short term liabilities (CN¥2.0B).

Long Term Liabilities: CML1's short term assets (CN¥3.0B) exceed its long term liabilities (CN¥259.0M).


Debt to Equity History and Analysis

Debt Level: CML1's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: CML1's debt to equity ratio has reduced from 144.6% to 7.8% over the past 5 years.

Debt Coverage: CML1's debt is well covered by operating cash flow (258.9%).

Interest Coverage: CML1 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CML1 has a high level of physical assets or inventory.

Debt Coverage by Assets: CML1's debt is covered by short term assets (assets are 9.2x debt).


Next Steps

Dividend

What is China Maple Leaf Educational Systems's current dividend yield, its reliability and sustainability?

4.09%

Current Dividend Yield


Upcoming Dividend Payment

Purchase China Maple Leaf Educational Systems before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.1%marketbottom25%1.3%markettop25%3.6%industryaverage1.9%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: CML1's dividend (4.09%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: CML1's dividend (4.09%) is in the top 25% of dividend payers in the German market (3.55%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CML1 has been paying a dividend for less than 10 years.

Growing Dividend: CML1's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.3%), CML1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CML1's dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

What is the CEO of China Maple Leaf Educational Systems's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Sherman Jen (65yo)

3.3yrs

Tenure

CN¥3,612,000

Compensation

Mr. Shu Liang Jen, also known as Sherman, has been the President of China Operations at China Maple Leaf Educational Systems Limited since September 1, 2016 and has been its Chairman since 2007. Mr. Jen is ...


CEO Compensation Analysis

Compensation vs Market: Sherman's total compensation ($USD517.55K) is below average for companies of similar size in the German market ($USD1.28M).

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


Management Age and Tenure

4.3yrs

Average Tenure

65yo

Average Age

Experienced Management: CML1's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

67yo

Average Age

Experienced Board: CML1's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: CML1 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Buy€85,33222 Oct 19
Howard Balloch
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares300,000
Max Price€0.28
Sell€53,14530 Sep 19
James William Beeke
EntityIndividual
Role
Member of the Board of Directors
VP, Superintendent of Global Education & Executive Director
Shares187,000
Max Price€0.28
Buy€5,69430 Sep 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares20,000
Max Price€0.28
Buy€278,49413 Aug 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max Price€0.28
Buy€913,98505 Aug 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares3,000,000
Max Price€0.30
Buy€326,94401 Aug 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max Price€0.33
Sell€136,09919 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares406,000
Max Price€0.34
Buy€534,09319 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,594,000
Max Price€0.34
Buy€919,47217 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,742,000
Max Price€0.34
Buy€92,58715 Jul 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares276,000
Max Price€0.34
Buy€565,69810 Jun 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,700,000
Max Price€0.33
Buy€576,28706 Jun 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,696,000
Max Price€0.34
Buy€849,09005 Jun 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,500,000
Max Price€0.34
Buy€35,79429 May 19
Lap Tat Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max Price€0.36
Buy€35,26129 May 19
Lap Tat Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max Price€0.35
Buy€1,674,78216 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares4,630,000
Max Price€0.36
Buy€357,66916 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max Price€0.36
Buy€565,02807 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,500,000
Max Price€0.38
Buy€884,24203 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,000,000
Max Price€0.44
Buy€427,63103 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,026,000
Max Price€0.42
Buy€819,94503 May 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares2,000,000
Max Price€0.41
Buy€371,88728 Jan 19
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,000,000
Max Price€0.37
Buy€666,93320 Dec 18
Shu Liang Jen
EntityIndividual
Role
Chief Executive Officer
Founder
Shares1,850,000
Max Price€0.36

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Management Team

  • Sherman Jen (65yo)

    Founder

    • Tenure: 3.3yrs
    • Compensation: CN¥3.61m
  • Jingxia Zhang (62yo)

    Senior VP

    • Tenure: 11.8yrs
    • Compensation: CN¥2.26m
  • James William Beeke (69yo)

    VP, Superintendent of Global Education & Executive Director

    • Tenure: 5.7yrs
    • Compensation: CN¥1.18m
  • Karl Dick

    Principal

    • Tenure: 0yrs
  • Brad Helgason

    Principal

    • Tenure: 0yrs
  • Graham Setters

    Principal

    • Tenure: 0yrs
  • Nigel Austen

    Principal

    • Tenure: 4.3yrs
  • Mark Wuerch

    Principal

    • Tenure: 4.3yrs
  • Dave Brecht

    Principal

    • Tenure: 4.3yrs
  • Ryan Waurynchuk

    Principal

    • Tenure: 0yrs

Board Members

  • Howard Balloch (67yo)

    Vice Chairman

    • Tenure: 2.9yrs
    • Compensation: CN¥840.00k
  • Sherman Jen (65yo)

    Founder

    • Tenure: 3.3yrs
    • Compensation: CN¥3.61m
  • Jingxia Zhang (62yo)

    Senior VP

    • Tenure: 11.8yrs
    • Compensation: CN¥2.26m
  • James William Beeke (69yo)

    VP, Superintendent of Global Education & Executive Director

    • Tenure: 5.7yrs
    • Compensation: CN¥1.18m
  • Arthur Wong (59yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥709.00k
  • Alan Shaver (72yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Peter Humphrey Owen (72yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: CN¥695.00k

Company Information

China Maple Leaf Educational Systems Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Maple Leaf Educational Systems Limited
  • Ticker: CML1
  • Exchange: DB
  • Founded: 1996
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$8.207b
  • Listing Market Cap: HK$946.613m
  • Shares outstanding: 3.00b
  • Website: https://www.mapleleaf.cn

Number of Employees


Location

  • China Maple Leaf Educational Systems Limited
  • Maple Leaf Educational Park
  • 6 Central Street
  • Dalian
  • Liaoning Province
  • 116650
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1317SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary sharesHKHKDNov 2014
CML1DB (Deutsche Boerse AG)YesOrdinary sharesDEEURNov 2014
1317SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary sharesHKHKDNov 2014
CMLL.FOTCPK (Pink Sheets LLC)YesOrdinary sharesUSUSDNov 2014

Biography

China Maple Leaf Educational Systems Limited, together with its subsidiaries, operates bilingual private schools and preschools in the People’s Republic of China and Canada. The company offers dual-diploma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 22:02
End of Day Share Price2019/12/13 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.