Virscend Education
Market Cap
HK$4.6b
Last Updated
2021/05/09 10:31 UTC
Data Sources
Company Financials +
Executive Summary
Virscend Education Company Limited, an investment holding company, provides private education services in the People’s Republic of China. More Details
Snowflake Analysis
Exceptional growth potential and fair value.
Similar Companies
Share Price & News
How has Virscend Education's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1565 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: 1565's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-5.1%
1565
-4.9%
HK Consumer Services
-0.5%
HK Market
1 Year Return
-6.3%
1565
8.7%
HK Consumer Services
25.4%
HK Market
Return vs Industry: 1565 underperformed the Hong Kong Consumer Services industry which returned 8.9% over the past year.
Return vs Market: 1565 underperformed the Hong Kong Market which returned 25.5% over the past year.
Shareholder returns
| 1565 | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | -4.9% | -0.5% |
| 30 Day | -4.5% | 3.1% | -0.9% |
| 90 Day | -18.0% | -7.1% | -3.2% |
| 1 Year | -2.7%-6.3% | 10.4%8.7% | 30.2%25.4% |
| 3 Year | -64.6%-67.5% | 4.1%-1.8% | 3.0%-7.9% |
| 5 Year | -64.6%-67.9% | 12.9%3.3% | 61.6%34.1% |
Long-Term Price Volatility Vs. Market
How volatile is Virscend Education's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Virscend Education's (HKG:1565) Soft Earnings Don't Show The Whole Picture1 week ago | Simply Wall St
These 4 Measures Indicate That Virscend Education (HKG:1565) Is Using Debt ExtensivelyValuation
Is Virscend Education undervalued compared to its fair value and its price relative to the market?
17.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 1565 (HK$1.5) is trading above our estimate of fair value (HK$1.25)
Significantly Below Fair Value: 1565 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 1565 is good value based on its PE Ratio (17x) compared to the HK Consumer Services industry average (22x).
PE vs Market: 1565 is poor value based on its PE Ratio (17x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 1565 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 1565 is good value based on its PB Ratio (1.4x) compared to the HK Consumer Services industry average (1.8x).
Future Growth
How is Virscend Education forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
41.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1565's forecast earnings growth (41.3% per year) is above the savings rate (1.5%).
Earnings vs Market: 1565's earnings (41.3% per year) are forecast to grow faster than the Hong Kong market (17% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 1565's revenue (27.1% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).
High Growth Revenue: 1565's revenue (27.1% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1565's Return on Equity is forecast to be high in 3 years time (26.3%)
Past Performance
How has Virscend Education performed over the past 5 years?
11.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1565 has a large one-off loss of CN¥104.4M impacting its December 31 2020 financial results.
Growing Profit Margin: 1565's current net profit margins (12.2%) are lower than last year (26.6%).
Past Earnings Growth Analysis
Earnings Trend: 1565's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: 1565's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1565 had negative earnings growth (-43.2%) over the past year, making it difficult to compare to the Consumer Services industry average (-19.4%).
Return on Equity
High ROE: 1565's Return on Equity (7.9%) is considered low.
Financial Health
How is Virscend Education's financial position?
Financial Position Analysis
Short Term Liabilities: 1565's short term assets (CN¥874.0M) do not cover its short term liabilities (CN¥3.1B).
Long Term Liabilities: 1565's short term assets (CN¥874.0M) do not cover its long term liabilities (CN¥1.7B).
Debt to Equity History and Analysis
Debt Level: 1565's debt to equity ratio (113.7%) is considered high.
Reducing Debt: 1565's debt to equity ratio has reduced from 212.8% to 113.7% over the past 5 years.
Debt Coverage: 1565's debt is well covered by operating cash flow (26.1%).
Interest Coverage: 1565's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
Dividend
What is Virscend Education current dividend yield, its reliability and sustainability?
3.33%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 1565's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).
High Dividend: 1565's dividend (3.33%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.99%).
Stability and Growth of Payments
Stable Dividend: 1565 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1565 has only been paying a dividend for 4 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (75%), 1565's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1565's dividends in 3 years are forecast to be well covered by earnings (23.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Yude Yan (58 yo)
2.5yrs
Tenure
CN¥878,000
Compensation
Mr. Yude Yan has been Executive Director at Virscend Education Company Limited since August 31, 2015 and also it's Chief Executive Officer since November 15, 2018. He served as its Director since March 13,...
CEO Compensation Analysis
Compensation vs Market: Yude's total compensation ($USD136.48K) is below average for companies of similar size in the Hong Kong market ($USD302.42K).
Compensation vs Earnings: Yude's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 1565's management team is seasoned and experienced (5.8 years average tenure).
Board Members
Experienced Board: 1565's board of directors are considered experienced (5.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 1565 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Virscend Education Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Virscend Education Company Limited
- Ticker: 1565
- Exchange: SEHK
- Founded: 2000
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: HK$4.633b
- Shares outstanding: 3.09b
- Website: https://www.virscendeducation.com
Number of Employees
Location
- Virscend Education Company Limited
- No. 23 He Xin Lu
- Pidu District
- Chengdu
- Sichuan Province
- China
Listings
Biography
Virscend Education Company Limited, an investment holding company, provides private education services in the People’s Republic of China. It operates schools for grades K-12, which include Chengdu Foreign ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/09 10:31 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.