SGX:NR7

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Overvalued with worrying balance sheet.

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 is more volatile than 75% of SG stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: NR7's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of SG stocks.


Market Performance


7 Day Return

0.8%

NR7

1.8%

SG Consumer Services

-0.5%

SG Market


1 Year Return

55.8%

NR7

32.7%

SG Consumer Services

-14.2%

SG Market

Return vs Industry: NR7 exceeded the SG Consumer Services industry which returned 32.7% over the past year.

Return vs Market: NR7 exceeded the SG Market which returned -14.2% over the past year.


Shareholder returns

NR7IndustryMarket
7 Day0.8%1.8%-0.5%
30 Day4.7%0.7%11.3%
90 Day17.5%0.9%10.3%
1 Year55.8%55.8%34.8%32.7%-9.5%-14.2%
3 Year-39.5%-45.3%0.9%-4.7%-11.1%-22.1%
5 Year-41.9%-47.5%-16.9%-23.4%12.2%-8.6%

Long-Term 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?

0.3x

Price to Book (PB) 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 unprofitable, so we can't compare its PE Ratio to the XA Consumer Services industry average.

PE vs Market: NR7 is unprofitable, so we can't compare its PE Ratio to the SG market.


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 (0.3x) compared to the XA Consumer Services industry average (1.8x).


Next Steps

Future Growth

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

34.5%

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?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NR7 is currently unprofitable.

Growing Profit Margin: NR7 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NR7 is unprofitable, but has reduced losses over the past 5 years at a rate of 22.2% per year.

Accelerating Growth: Unable to compare NR7's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NR7 is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (-4.1%).


Return on Equity

High ROE: NR7 has a negative Return on Equity (-2.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Raffles Education's financial position?


Financial Position Analysis

Short Term Liabilities: NR7's short term assets (SGD137.4M) do not cover its short term liabilities (SGD234.3M).

Long Term Liabilities: NR7's short term assets (SGD137.4M) do not cover its long term liabilities (SGD257.9M).


Debt to Equity History and Analysis

Debt Level: NR7's debt to equity ratio (50%) is considered high.

Reducing Debt: NR7's debt to equity ratio has reduced from 59.3% to 50% over the past 5 years.

Debt Coverage: NR7's debt is not well covered by operating cash flow (2.6%).

Interest Coverage: Insufficient data to determine if NR7's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NR7's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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

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

15.1yrs

Average management tenure


CEO

Hua Seng Chew (66 yo)

no data

Tenure

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 Non-Executive Chairman and Non-Executive Dir...


Leadership Team

NamePositionTenureCompensationOwnership
Hua Seng Chew
Founderno datano data26.14%
SGD 48.3m
Kah Ho
Chief Financial Officer17.92yrsno datano data
Ong How
Director of HR16.67yrsno datano data
Keloth Raj Kumar
Company Secretary13.58yrsno datano data
Lam Yan
Vice President of Indochina Operations and Chief Executive Officer of Raffles University Sri Lanka no datano datano data
Graeme Britton
President of Raffles University Iskandar & VP of Raffles University Systemno datano datano data
Steve Rawlinson
President-Raffles University Sri Lanka and Principal-Raffles College of Design & Commerce - Sydney5.08yrsno datano data
Gim Lian Chung
Director of Raffles University Iskandar/Raffles American Schoolno datano data7.44%
SGD 13.7m

15.1yrs

Average Tenure

Experienced Management: NR7's management team is seasoned and experienced (15.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hua Seng Chew
Founderno datano data26.14%
SGD 48.3m
Jun He
Non-Independent & Non-Executive Director2.08yrsno datano data
Cheng Lok Teo
Independent Non Executive Director12.17yrsno data0.026%
SGD 48.5k
How Teck Lim
Lead Independent Non Executive Director2.75yrsno datano data
Hui Tin Gan
Independent Non-Executive Director2.67yrsno datano data

2.7yrs

Average Tenure

66yo

Average Age

Experienced Board: NR7's board of directors are not considered experienced ( 2.7 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: NR7 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

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$184.740m
  • 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)UNSP ADR EACH REPR 20 ORDUSUSDNov 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, Educa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 11:09
End of Day Share Price2020/12/04 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.