SGX:NR7

Stock Analysis Report

Executive Summary

Raffles Education Corporation Limited, an investment holding company, provides education and related services in ASEAN, North Asia, South Asia, Australasia, and Europe.

Rewards

PE ratio (2.7x) is below the SG market (13.5x)

Earnings grew by 165% over the past year

Risk Analysis

Earnings have declined by -22.48% per year over past 5 years

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NR7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.7%

NR7

-2.4%

SG Consumer Services

-1.2%

SG Market


1 Year Return

-27.5%

NR7

20.9%

SG Consumer Services

1.0%

SG Market

Return vs Industry: NR7 underperformed the SG Consumer Services industry which returned 28.7% over the past year.

Return vs Market: NR7 underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

NR7IndustryMarket
7 Day-3.7%-2.4%-1.2%
30 Day-10.2%-3.6%0.6%
90 Day-1.3%0.5%1.9%
1 Year-27.5%-27.5%23.3%20.9%5.1%1.0%
3 Year-54.7%-59.1%9.5%3.5%14.1%2.0%
5 Year-72.6%-76.1%7.1%-3.7%10.8%-7.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NR7's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NR7's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NR7 is good value based on its PE Ratio (2.7x) compared to the Consumer Services industry average (18.2x).

PE vs Market: NR7 is good value based on its PE Ratio (2.7x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NR7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NR7 is good value based on its PB Ratio (0.2x) compared to the SG Consumer Services industry average (1.1x).


Next Steps

Future Growth

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

26.2%

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 Raffles Education 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 Raffles Education performed over the past 5 years?

-22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NR7 has a large one-off gain of SGD42.3M impacting its September 30 2019 financial results.

Growing Profit Margin: NR7's current net profit margins (41.4%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: NR7's earnings have declined by -22.5% per year over the past 5 years.

Accelerating Growth: NR7's earnings growth over the past year (165%) exceeds its 5-year average (-22.5% per year).

Earnings vs Industry: NR7 earnings growth over the past year (165%) exceeded the Consumer Services industry 10%.


Return on Equity

High ROE: NR7's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Raffles Education's financial position?


Financial Position Analysis

Short Term Liabilities: NR7's short term assets (SGD233.6M) exceed its short term liabilities (SGD230.5M).

Long Term Liabilities: NR7's short term assets (SGD233.6M) do not cover its long term liabilities (SGD354.9M).


Debt to Equity History and Analysis

Debt Level: NR7's debt to equity ratio (55.2%) is considered high.

Reducing Debt: NR7's debt to equity ratio has increased from 51.2% to 55.2% over the past 5 years.

Debt Coverage: NR7's debt is not well covered by operating cash flow (2.2%).

Interest Coverage: NR7's interest payments on its debt are not well covered by EBIT (0.1x coverage).


Balance Sheet

Inventory Level: NR7 has a high level of physical assets or inventory.

Debt Coverage by Assets: NR7's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.5%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NR7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NR7'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 NR7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NR7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NR7 is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NR7's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of Raffles Education's salary, the management and board of directors tenure and is there insider trading?

14.2yrs

Average management tenure


CEO

Hua Seng Chew (65yo)

0yrs

Tenure

0

Mr. Hua Seng Chew is the Founder of Raffles Education Corporation Limited and serves as its Chairman of the Board and Chief Executive Officer. Mr. Chew has been Chairman and Non-Executive Director of Sitra ...


Management Age and Tenure

14.2yrs

Average Tenure

Experienced Management: NR7's management team is seasoned and experienced (14.2 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NR7's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 7.3%.


Management Team

  • Hua Seng Chew (65yo)

    Chairman

    • Doris Chung

      Director of Raffles University Iskandar/Raffles American School

      • Kenneth Ho

        Chief Financial Officer

        • Tenure: 17yrs
      • Keloth Raj Kumar

        Company Secretary

        • Tenure: 12.7yrs
      • Karen Grace Yan

        Vice President of Indochina Operations and Chief Executive Officer of Raffles University Sri Lanka

        • Graeme Britton

          President of Raffles University Iskandar & VP of Raffles University System

          • Ong How

            Director of HR

            • Tenure: 15.8yrs
          • Steve Rawlinson

            President-Raffles University Sri Lanka and Principal-Raffles College of Design & Commerce - Sydney

            • Tenure: 4.2yrs

          Board Members

          • Hua Seng Chew (65yo)

            Chairman

            • Joseph He (56yo)

              Non-Independent & Non-Executive Director

              • Tenure: 1.2yrs
            • John Teo (69yo)

              Independent Non Executive Director

              • Tenure: 11.3yrs
            • Ying Chun Liu (55yo)

              Non-Independent Non-Executive Director

              • Tenure: 0.2yrs
            • How Teck Lim

              Lead Independent Non Executive Director

              • Tenure: 1.8yrs
            • Hui Tin Gan

              Independent Non-Executive Director

              • Tenure: 1.8yrs

            Company Information

            Raffles Education Corporation Limited's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Raffles Education Corporation Limited
            • Ticker: NR7
            • Exchange: SGX
            • Founded: 1990
            • Industry: Education Services
            • Sector: Consumer Services
            • Market Cap: S$108.914m
            • Shares outstanding: 1.38b
            • Website: https://raffles.education

            Number of Employees


            Location

            • Raffles Education Corporation Limited
            • Raffles Education Square
            • 51 Merchant Road
            • Singapore
            • 58283
            • Singapore

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            RFLF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2002
            NR7SGX (Singapore Exchange)YesOrdinary SharesSGSGDJan 2002
            O2KCBST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 2002
            RFLF.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

            Biography

            Raffles Education Corporation Limited, an investment holding company, provides education and related services in ASEAN, North Asia, South Asia, Australasia, and Europe. It operates through Education, Education Facilities Rental Service, and Real Estate Investment & Development segments. The company provides degree, diploma, and full-time certificate programs in design and business-oriented disciplines, pre-tertiary education, and K12 curriculum. In addition, it operates Raffles University Iskandar; Tianjin University of Commerce Boustead College; Raffles American School that offers American K-12 education; and Oriental University City campus. Further, it engages in education facilities leasing and commercial leasing activities for supporting facilities; and real estate investment and development activities. Additionally, the company offers education supporting, and business and management consultancy services. It operates through a network of 22 colleges/universities in 20 cities across 12 countries. Raffles Education Corporation Limited was founded in 1990 and is based in Singapore. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/24 12:52
            End of Day Share Price2020/01/24 00:00
            Earnings2019/09/30
            Annual Earnings2019/06/30


            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.