SGX:RQ1

Stock Analysis Report

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Executive Summary

Overseas Education Limited, an investment holding company, operates a private foreign system school in Singapore. More Details


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RQ1 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RQ1's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.0%

RQ1

-0.4%

SG Consumer Services

1.3%

SG Market


1 Year Return

-8.7%

RQ1

17.7%

SG Consumer Services

-1.6%

SG Market

Return vs Industry: RQ1 underperformed the SG Consumer Services industry which returned 17.8% over the past year.

Return vs Market: RQ1 underperformed the SG Market which returned -1.6% over the past year.


Shareholder returns

RQ1IndustryMarket
7 Day5.0%-0.4%1.3%
30 Day1.6%-7.4%2.3%
90 Day8.6%-7.0%6.1%
1 Year-0.3%-8.7%19.3%17.7%3.6%-1.6%
3 Year12.7%-12.5%-9.1%-13.7%-7.2%-18.6%
5 Year9.7%-23.2%-10.5%-17.9%17.0%-4.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Overseas Education 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: RQ1 (SGD0.32) is trading below our estimate of fair value (SGD0.83)

Significantly Below Fair Value: RQ1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RQ1 is good value based on its PE Ratio (12.7x) compared to the XA Consumer Services industry average (21.1x).

PE vs Market: RQ1 is good value based on its PE Ratio (12.7x) compared to the SG market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RQ1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RQ1 is good value based on its PB Ratio (0.9x) compared to the XA Consumer Services industry average (1.7x).


Next Steps

Future Growth

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

35.4%

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 Overseas 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 Overseas Education performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RQ1 has high quality earnings.

Growing Profit Margin: RQ1's current net profit margins (13%) are higher than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: RQ1's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: RQ1's earnings growth over the past year (28.5%) exceeds its 5-year average (1.9% per year).

Earnings vs Industry: RQ1 earnings growth over the past year (28.5%) exceeded the Consumer Services industry -3.6%.


Return on Equity

High ROE: RQ1's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Overseas Education's financial position?


Financial Position Analysis

Short Term Liabilities: RQ1's short term assets (SGD47.1M) exceed its short term liabilities (SGD44.8M).

Long Term Liabilities: RQ1's short term assets (SGD47.1M) do not cover its long term liabilities (SGD110.7M).


Debt to Equity History and Analysis

Debt Level: RQ1's debt to equity ratio (77.7%) is considered high.

Reducing Debt: RQ1's debt to equity ratio has reduced from 96.7% to 77.7% over the past 5 years.

Debt Coverage: RQ1's debt is well covered by operating cash flow (23.2%).

Interest Coverage: RQ1's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Next Steps

Dividend

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

7.30%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RQ1's dividend (7.3%) is higher than the bottom 25% of dividend payers in the SG market (1.99%).

High Dividend: RQ1's dividend (7.3%) is in the top 25% of dividend payers in the SG market (4.88%)


Stability and Growth of Payments

Stable Dividend: RQ1 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RQ1 has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.8%), RQ1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

David Alan Perry (78 yo)

no data

Tenure

S$383,000

Compensation

Mr. David Alan Perry serves as the Chief Executive Officer and Executive Chairman of Overseas Education Limited. Mr. Perry serves as Chairman of Board Of Directors of Overseas Family School Limited. He has...


CEO Compensation Analysis

Compensation vs Market: David Alan's total compensation ($USD285.01K) is about average for companies of similar size in the SG market ($USD387.67K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Alan Perry
Executive Chairman & CEOno dataS$383.00k32.96%
SGD 43.1m
Lok Hiong Wong
Executive Director & Chief Executive of OFSL9.42yrsS$397.03k31.75%
SGD 41.5m
Chwee Soon Lee
General Manager14.17yrsno datano data
Suzanne Magdalen Bentin
Head of School1.92yrsno datano data
Hok Hoe Wong
Head of Security4.58yrsno datano data
Kok Liang Chew
Company Secretaryno datano datano data
Kuei Lian Siau
Joint Company Secretary1.08yrsno datano data

3.3yrs

Average Tenure

63yo

Average Age

Experienced Management: RQ1's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Alan Perry
Executive Chairman & CEOno dataS$383.00k32.96%
SGD 43.1m
Lok Hiong Wong
Executive Director & Chief Executive of OFSL9.42yrsS$397.03k31.75%
SGD 41.5m
Yew Mun Ho
Lead Independent Director8.58yrsS$120.00kno data
Wee Kia Leow
Independent Director8.25yrsS$120.00kno data
Teng Muan Tan
Independent Director9.42yrsS$100.00kno data
David Peter Walker
Independent Director5.67yrsS$100.00kno data

8.6yrs

Average Tenure

65yo

Average Age

Experienced Board: RQ1's board of directors are considered experienced (8.6 years average tenure).


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

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


Key Information

  • Name: Overseas Education Limited
  • Ticker: RQ1
  • Exchange: SGX
  • Founded: 1991
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: S$130.840m
  • Shares outstanding: 415.36m
  • Website: https://www.ofs.edu.sg

Number of Employees


Location

  • Overseas Education Limited
  • 81 Pasir Ris Heights
  • Singapore
  • 519292
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RQ1SGX (Singapore Exchange)YesOrdinary SharesSGSGDFeb 2013

Biography

Overseas Education Limited, an investment holding company, operates a private foreign system school in Singapore. The company offers an integrated inquiry-based program comprising the International Early Y...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 11:09
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.