Scholar Education Group
Market Cap
HK$8.9b
Last Updated
2020/11/26 10:11 UTC
Data Sources
Company Financials +
Executive Summary
Scholar Education Group provides K-12 after-school education services in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with excellent balance sheet.
Share Price & News
How has Scholar Education Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1769 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: 1769's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-4.3%
1769
0.8%
HK Consumer Services
-0.5%
HK Market
1 Year Return
68.2%
1769
29.8%
HK Consumer Services
7.6%
HK Market
Return vs Industry: 1769 exceeded the Hong Kong Consumer Services industry which returned 29.8% over the past year.
Return vs Market: 1769 exceeded the Hong Kong Market which returned 7.6% over the past year.
Shareholder returns
| 1769 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.3% | 0.8% | -0.5% |
| 30 Day | -18.3% | 8.5% | 5.3% |
| 90 Day | -31.3% | -7.8% | 4.2% |
| 1 Year | 70.0%68.2% | 32.3%29.8% | 11.9%7.6% |
| 3 Year | n/a | -0.9%-7.0% | -1.2%-11.4% |
| 5 Year | n/a | 11.6%2.3% | 29.7%7.9% |
Long-Term Price Volatility Vs. Market
How volatile is Scholar Education Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Now The Time To Put Scholar Education Group (HKG:1769) On Your Watchlist?3 weeks ago | Simply Wall St
Scholar Education Group (HKG:1769) Has A Pretty Healthy Balance Sheet1 month ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Scholar Education Group's (HKG:1769) Stock?Valuation
Is Scholar Education Group undervalued compared to its fair value and its price relative to the market?
48.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1769 (HK$16.18) is trading below our estimate of fair value (HK$31.64)
Significantly Below Fair Value: 1769 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1769 is poor value based on its PE Ratio (71x) compared to the HK Consumer Services industry average (17.7x).
PE vs Market: 1769 is poor value based on its PE Ratio (71x) compared to the Hong Kong market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: 1769 is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: 1769 is overvalued based on its PB Ratio (13.8x) compared to the HK Consumer Services industry average (2.1x).
Next Steps
Future Growth
How is Scholar Education Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
39.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1769's forecast earnings growth (39.7% per year) is above the savings rate (1.6%).
Earnings vs Market: 1769's earnings (39.7% per year) are forecast to grow faster than the Hong Kong market (21.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 1769's revenue (29.2% per year) is forecast to grow faster than the Hong Kong market (13.7% per year).
High Growth Revenue: 1769's revenue (29.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1769's Return on Equity is forecast to be very high in 3 years time (43.1%).
Next Steps
Past Performance
How has Scholar Education Group performed over the past 5 years?
34.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1769 has a large one-off gain of CN¥57.5M impacting its June 30 2020 financial results.
Growing Profit Margin: 1769's current net profit margins (14.5%) are higher than last year (12.5%).
Past Earnings Growth Analysis
Earnings Trend: 1769's earnings have grown significantly by 34.1% per year over the past 5 years.
Accelerating Growth: 1769's earnings growth over the past year (56%) exceeds its 5-year average (34.1% per year).
Earnings vs Industry: 1769 earnings growth over the past year (56%) exceeded the Consumer Services industry 6.7%.
Return on Equity
High ROE: 1769's Return on Equity (19.5%) is considered low.
Next Steps
Financial Health
How is Scholar Education Group's financial position?
Financial Position Analysis
Short Term Liabilities: 1769's short term assets (CN¥596.5M) exceed its short term liabilities (CN¥414.6M).
Long Term Liabilities: 1769's short term assets (CN¥596.5M) exceed its long term liabilities (CN¥422.4M).
Debt to Equity History and Analysis
Debt Level: 1769's debt to equity ratio (22%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 1769's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 1769's debt is well covered by operating cash flow (148.4%).
Interest Coverage: 1769's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Scholar Education Group current dividend yield, its reliability and sustainability?
0.74%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1769's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.23%).
High Dividend: 1769's dividend (0.74%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).
Stability and Growth of Payments
Stable Dividend: 1769 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.
Growing Dividend: 1769 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 1769 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 1769's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Mingzhi Qi (35 yo)
1.92yrs
Tenure
CN¥421,000
Compensation
Mr. Qi Mingzhi has been Director of Scholar Education Group since 16 April 2018 and Chief Executive Officer since 8 December 2018. He was re-designated as an executive Director of Scholar Education Group ...
CEO Compensation Analysis
Compensation vs Market: Mingzhi's total compensation ($USD64.03K) is below average for companies of similar size in the Hong Kong market ($USD476.54K).
Compensation vs Earnings: Mingzhi's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.58yrs | CN¥370.00k | 38.52% CN¥ 3.4b | |
| CEO & Director | 1.92yrs | CN¥421.00k | no data | |
| Executive Director | 2.58yrs | CN¥363.00k | no data | |
| Executive Director | 8.58yrs | CN¥432.00k | no data | |
| CFO & Company Secretary | 1.83yrs | no data | no data | |
| Financial Controller | 3.83yrs | no data | no data |
1.9yrs
Average Tenure
38.5yo
Average Age
Experienced Management: 1769's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 2.58yrs | CN¥370.00k | 38.52% CN¥ 3.4b | |
| CEO & Director | 1.92yrs | CN¥421.00k | no data | |
| Executive Director | 2.58yrs | CN¥363.00k | no data | |
| Executive Director | 8.58yrs | CN¥432.00k | no data | |
| Independent non-executive Director | 1.42yrs | CN¥98.00k | no data | |
| Independent non-executive Director | 1.42yrs | CN¥60.00k | no data | |
| Vice Chairman | 2.58yrs | no data | no data | |
| Independent non-executive Director | 1.42yrs | CN¥67.00k | no data |
2.6yrs
Average Tenure
40.5yo
Average Age
Experienced Board: 1769's board of directors are not considered experienced ( 2.6 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
Scholar Education Group's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Scholar Education Group
- Ticker: 1769
- Exchange: SEHK
- Founded: 2012
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: HK$8.913b
- Shares outstanding: 555.70m
- Website: https://www.skledu.com
Number of Employees
Location
- Scholar Education Group
- Building A
- Room 2601
- Shenzhen
- Guangdong Province
- 518049
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1769 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2019 |
| SCED.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2019 |
Biography
Scholar Education Group provides K-12 after-school education services in the People’s Republic of China. The company offers a suite of after-school education services through its academic preparation progr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/26 10:11 |
| End of Day Share Price | 2020/11/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.