6068

Wisdom Education International HoldingsSEHK:6068 Stock Report

Market Cap

HK$3.3b

7D

-6.2%

1Y

-51.0%

Updated

19 Sep, 2021

Data

Company Financials +
6068 fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance5/6
Financial Health3/6
Dividends4/6

6068 Overview

Wisdom Education International Holdings Company Limited, an investment holding company, operates primary and secondary schools in the People’s Republic of China.

Wisdom Education International Holdings Competitors

China Maple Leaf Educational Systems

SEHK:1317

HK$4.3b

Virscend Education

SEHK:1565

HK$1.6b

Hailiang Education Group

NasdaqGM:HLG

US$858.4m

Bright Scholar Education Holdings

NYSE:BEDU

US$310.4m

Price History & Performance

Summary of all time highs, changes and price drops for Wisdom Education International Holdings
Historical stock prices
Current Share PriceHK$1.52
52 Week HighHK$1.43
52 Week LowHK$4.48
Beta1.87
1 Month Change1.33%
3 Month Change-27.27%
1 Year Change-50.97%
3 Year Change-65.92%
5 Year Changen/a
Change since IPO-10.06%

Recent News & Updates

Sep 06
Should You Investigate Wisdom Education International Holdings Company Limited (HKG:6068) At HK$1.69?

Should You Investigate Wisdom Education International Holdings Company Limited (HKG:6068) At HK$1.69?

Wisdom Education International Holdings Company Limited ( HKG:6068 ), might not be a large cap stock, but it saw a...

Jun 14
Here's What's Concerning About Wisdom Education International Holdings' (HKG:6068) Returns On Capital

Here's What's Concerning About Wisdom Education International Holdings' (HKG:6068) Returns On Capital

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jun 01
Wisdom Education International Holdings (HKG:6068) Takes On Some Risk With Its Use Of Debt

Wisdom Education International Holdings (HKG:6068) Takes On Some Risk With Its Use Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

6068HK Consumer ServicesHK Market
7D-6.2%-6.1%-4.6%
1Y-51.0%-40.9%5.2%

Return vs Industry: 6068 underperformed the Hong Kong Consumer Services industry which returned -40.9% over the past year.

Return vs Market: 6068 underperformed the Hong Kong Market which returned 5.2% over the past year.

Price Volatility

Is 6068's price volatile compared to industry and market?
6068 volatility
6068 Beta1.87
Industry Beta1.03
Market Beta1

Stable Share Price: 6068 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 6068's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20026,594Suwen Lihttps://www.wisdomeducationintl.com

Wisdom Education International Holdings Company Limited, an investment holding company, operates primary and secondary schools in the People’s Republic of China. The company offers private education for primary, middle, and high schools. It also provides international programs to pursue higher education overseas; and school-based elective courses, including courses for sports, arts, music, and Chinese culture.

Valuation

Is Wisdom Education International Holdings 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: 6068 (HK$1.52) is trading below our estimate of fair value (HK$8.22)

Significantly Below Fair Value: 6068 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6068 is good value based on its PE Ratio (4.8x) compared to the Hong Kong Consumer Services industry average (15.8x).

PE vs Market: 6068 is good value based on its PE Ratio (4.8x) compared to the Hong Kong market (10x).


Price to Earnings Growth Ratio

PEG Ratio: 6068 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 6068 is good value based on its PB Ratio (0.9x) compared to the HK Consumer Services industry average (1.5x).


Future Growth

How is Wisdom Education International Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6068's forecast earnings growth (16.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 6068's earnings (16.1% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 6068's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6068's revenue (14.4% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).

High Growth Revenue: 6068's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6068's Return on Equity is forecast to be high in 3 years time (20.2%)


Past Performance

How has Wisdom Education International Holdings performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6068 has high quality earnings.

Growing Profit Margin: 6068's current net profit margins (29.2%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: 6068's earnings have grown significantly by 27.7% per year over the past 5 years.

Accelerating Growth: 6068's earnings growth over the past year (31.7%) exceeds its 5-year average (27.7% per year).

Earnings vs Industry: 6068 earnings growth over the past year (31.7%) exceeded the Consumer Services industry 1.4%.


Return on Equity

High ROE: 6068's Return on Equity (17.1%) is considered low.


Financial Health

How is Wisdom Education International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6068's short term assets (CN¥1.2B) do not cover its short term liabilities (CN¥2.2B).

Long Term Liabilities: 6068's short term assets (CN¥1.2B) do not cover its long term liabilities (CN¥3.1B).


Debt to Equity History and Analysis

Debt Level: 6068's debt to equity ratio (94.2%) is considered high.

Reducing Debt: 6068's debt to equity ratio has reduced from 135.3% to 94.2% over the past 5 years.

Debt Coverage: 6068's debt is well covered by operating cash flow (31.5%).

Interest Coverage: 6068's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Dividend

What is Wisdom Education International Holdings's current dividend yield, its reliability and sustainability?

9.49%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 20 2021Ex Dividend DateSep 29 2021Dividend Pay DateOct 13 202114 days from Ex DividendBuy in the next 9 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6068's dividend (9.49%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 6068's dividend (9.49%) is in the top 25% of dividend payers in the Hong Kong market (6.76%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6068 has been paying a dividend for less than 10 years.

Growing Dividend: 6068's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.6%), 6068's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6068's dividends in 3 years are forecast to be well covered by earnings (43% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Suwen Li (47 yo)

no data

Tenure

CN¥2,206,000

Compensation

Ms. Suwen Li serves as the Chief Executive Officer of Wisdom Education International Holdings Company Limited and has been its Director on 13 July 2010 and as an executive Director on 7 June 2016. Ms. Li h...


CEO Compensation Analysis

Compensation vs Market: Suwen's total compensation ($USD341.17K) is about average for companies of similar size in the Hong Kong market ($USD339.53K).

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


Leadership Team

Experienced Management: 6068's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: 6068's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 6068 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

Wisdom Education International Holdings Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Wisdom Education International Holdings Company Limited
  • Ticker: 6068
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: HK$3.311b
  • Shares outstanding: 2.18b
  • Website: https://www.wisdomeducationintl.com

Number of Employees


Location

  • Wisdom Education International Holdings Company Limited
  • No. 68 Guangming Da Dao
  • Dongcheng District
  • Dongguan
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 10:04
End of Day Share Price2021/09/17 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.