NasdaqGS:JOBS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and overvalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.2%

JOBS

5.0%

US Professional Services

5.3%

US Market


1 Year Return

-27.7%

JOBS

-7.0%

US Professional Services

-10.7%

US Market

Return vs Industry: JOBS underperformed the US Professional Services industry which returned -7% over the past year.

Return vs Market: JOBS underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

JOBSIndustryMarket
7 Day3.2%5.0%5.3%
30 Day-20.0%-16.6%-13.6%
90 Day-28.6%-17.6%-19.8%
1 Year-27.7%-27.7%-6.2%-7.0%-8.9%-10.7%
3 Year60.2%60.2%22.3%18.5%15.5%8.0%
5 Year80.6%80.6%38.5%31.0%35.2%20.4%

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?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JOBS ($61.27) is trading below our estimate of fair value ($73.33)

Significantly Below Fair Value: JOBS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JOBS is poor value based on its PE Ratio (53x) compared to the Professional Services industry average (12.6x).

PE vs Market: JOBS is poor value based on its PE Ratio (53x) compared to the US market (13.1x).


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 is overvalued based on its PB Ratio (2.6x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

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

6.2%

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 (1.7%).

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 (6.2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: JOBS's revenue (6.2% 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 (11.7%).


Next Steps

Past Performance

How has 51job performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JOBS has a large one-off loss of CN¥892.8M impacting its December 31 2019 financial results.

Growing Profit Margin: JOBS's current net profit margins (13.3%) are lower than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: JOBS's earnings have grown by 16.2% 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 (-57.5%) over the past year, making it difficult to compare to the Professional Services industry average (13.9%).


Return on Equity

High ROE: JOBS's Return on Equity (4.7%) 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¥10.9B) exceed its short term liabilities (CN¥2.8B).

Long Term Liabilities: JOBS's short term assets (CN¥10.9B) exceed its long term liabilities (CN¥265.1M).


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 31.8%.

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

Inventory Level: JOBS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if JOBS's debt is covered by short term assets.


Next Steps

Dividend

What is 51job's 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 payouts.

High Dividend: Unable to evaluate JOBS'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 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?

7.0yrs

Average board tenure


CEO

Rick Yan (57yo)

20.17s

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-Founder20.17yrsno data19.32% CN¥792.3m
David Chao
Chairman of the Board & Independent Director7yrsno datano data
Li-Lan Cheng
Independent Director7yrsno datano data
Junichi Arai
Director2.83yrsno datano data
Eric He
Independent Director5.67yrsno datano data

7.0yrs

Average Tenure

54yo

Average Age

Experienced Board: JOBS's board of directors are considered experienced (7 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 6.1%.


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$4.100b
  • Shares outstanding: 66.78m
  • Website: https://www.51job.com

Number of Employees


Location

  • 51job, Inc.
  • Building 3
  • No. 1387, Zhang Dong Road
  • Shanghai
  • 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.com, yingjiesheng.com, 51jingying.com, and lagou.com; and mobile applications that enable job seekers to access their accounts through mobile devices and utilize functions available on their Websites. It also provides other human resource related services, such as business process outsourcing that consist of social insurance, benefits, and payroll processing, as well as compliance with local governmental employment regulations; and conducts training seminars in the business management, leadership, sales and marketing, human resource, negotiation skills, financial planning and analysis, public administration, manufacturing, secretarial, and other skills. In addition, the company offers campus recruitment services to corporations that seek to recruit college and university students; and placement and executive search services to employers seeking to attract talent and fill job vacancies. Further, it provides professional and scientific assessment tools that assist human resource departments in evaluating capabilities and dispositions of job candidates and existing employees, as well as offers talent assessment services; conducts general and customized surveys on salary, employee retention, and other human resource related topics; organizes and hosts annual human resource conferences and events; and provides support and administrative services to employers on select recruitment projects. The company serves multinational corporations, large national Chinese corporations, and the local Chinese enterprises. It offers its services through sales offices, and a national sales and customer service call center in Wuhan. 51job, Inc. was founded in 1998 and is based in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:10
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.