NasdaqGS:JOBS

Stock Analysis Report

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Executive Summary

51job, Inc., through its subsidiaries, provides integrated human resource services in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has 51job's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

JOBS

3.3%

US Professional Services

2.2%

US Market


1 Year Return

6.1%

JOBS

15.1%

US Professional Services

16.2%

US Market

Return vs Industry: JOBS underperformed the US Professional Services industry which returned 17.4% over the past year.

Return vs Market: JOBS underperformed the US Market which returned 15.9% over the past year.


Shareholder returns

JOBSIndustryMarket
7 Day-0.2%3.3%2.2%
30 Day-0.01%5.7%4.9%
90 Day10.9%19.9%17.8%
1 Year6.1%6.1%16.0%15.1%18.7%16.2%
3 Year20.4%20.4%52.6%47.9%41.1%32.0%
5 Year133.3%133.3%89.9%79.8%74.5%55.7%

Price Volatility Vs. Market

How volatile is 51job's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 51job undervalued compared to its fair value and its price relative to the market?

38.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JOBS ($68.18) is trading above our estimate of fair value ($60.68)

Significantly Below Fair Value: JOBS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JOBS is poor value based on its PE Ratio (38.4x) compared to the US Professional Services industry average (22.7x).

PE vs Market: JOBS is poor value based on its PE Ratio (38.4x) compared to the US market (18x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: JOBS's PB Ratio (2.8x) is in line with the US Professional Services industry average.


Next Steps

Future Growth

How is 51job forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if JOBS's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if JOBS's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JOBS's revenue (9.8% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: JOBS's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JOBS's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has 51job performed over the past 5 years?

15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JOBS has a large one-off loss of CN¥464.1M impacting its March 31 2020 financial results.

Growing Profit Margin: JOBS's current net profit margins (21.2%) are lower than last year (38.6%).


Past Earnings Growth Analysis

Earnings Trend: JOBS's earnings have grown by 15.7% per year over the past 5 years.

Accelerating Growth: JOBS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JOBS had negative earnings growth (-45.2%) over the past year, making it difficult to compare to the Professional Services industry average (1.3%).


Return on Equity

High ROE: JOBS's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is 51job's financial position?


Financial Position Analysis

Short Term Liabilities: JOBS's short term assets (CN¥11.6B) exceed its short term liabilities (CN¥3.3B).

Long Term Liabilities: JOBS's short term assets (CN¥11.6B) exceed its long term liabilities (CN¥255.5M).


Debt to Equity History and Analysis

Debt Level: JOBS is debt free.

Reducing Debt: JOBS has no debt compared to 5 years ago when its debt to equity ratio was 28.6%.

Debt Coverage: JOBS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: JOBS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is 51job current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

7.4yrs

Average board tenure


CEO

Rick Yan (58 yo)

20.58yrs

Tenure

Mr. Rick Yan is a Co-Founder of 51job Inc. and has been its Chief Executive Officer since 2000 and serves as its President and Secretary. Mr. Yan is responsible for 51job Inc.'s overall strategy and manage ...


Board Members

NamePositionTenureCompensationOwnership
Rick Yan
Co-Founder20.58yrsno data19.34%
CN¥ 888.9m
David Chao
Independent Chairman of the Board7.42yrsno datano data
Li-Lan Cheng
Independent Director7.42yrsno datano data
Junichi Arai
Non-Executive Director3.25yrsno datano data
Zhenyu He
Independent Director6.08yrsno datano data

7.4yrs

Average Tenure

55yo

Average Age

Experienced Board: JOBS's board of directors are considered experienced (7.4 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 been diluted in the past year, with total shares outstanding growing by 7.1%.


Top Shareholders

Company Information

51job, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 51job, Inc.
  • Ticker: JOBS
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$4.597b
  • Shares outstanding: 66.90m
  • Website: https://www.51job.com

Number of Employees


Location

  • 51job, Inc.
  • Building 3
  • No. 1387, Zhang Dong Road
  • Shanghai
  • Shanghai Province
  • 201203
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JOBSNasdaqGS (Nasdaq Global Select)YesADR EA REP 2 ORD USD0.0001(SPONS)USUSDSep 2004
IWQDB (Deutsche Boerse AG)YesADR EA REP 2 ORD USD0.0001(SPONS)DEEURSep 2004
JOBS NBMV (Bolsa Mexicana de Valores)YesADR EA REP 2 ORD USD0.0001(SPONS)MXMXNSep 2004
0A2HLSE (London Stock Exchange)YesADR EA REP 2 ORD USD0.0001(SPONS)GBUSDSep 2004

Biography

51job, Inc., through its subsidiaries, provides integrated human resource services in the People’s Republic of China. The company offers online recruitment services through its Websites comprising 51job.co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 01:06
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.