NasdaqGM:HLG

Stock Analysis Report

Executive Summary

Hailiang Education Group Inc., through its subsidiaries, provides K-12 educational services in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HLG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

41.9%

HLG

2.8%

US Consumer Services

7.2%

US Market


1 Year Return

47.8%

HLG

-2.0%

US Consumer Services

-10.4%

US Market

Return vs Industry: HLG exceeded the US Consumer Services industry which returned -0.7% over the past year.

Return vs Market: HLG exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

HLGIndustryMarket
7 Day41.9%2.8%7.2%
30 Day-0.7%-14.2%-12.6%
90 Day-11.2%-9.0%-19.4%
1 Year47.8%47.8%-1.7%-2.0%-8.5%-10.4%
3 Year537.0%537.0%61.2%54.0%15.8%8.3%
5 Yearn/a126.1%100.1%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLG ($55.79) is trading below our estimate of fair value ($90.1)

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


Price To Earnings Ratio

PE vs Industry: HLG is poor value based on its PE Ratio (27.2x) compared to the Consumer Services industry average (24.8x).

PE vs Market: HLG is poor value based on its PE Ratio (27.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HLG is overvalued based on its PB Ratio (5.5x) compared to the US Consumer Services industry average (1.6x).


Next Steps

Future Growth

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

41.4%

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 Hailiang Education Group 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 Hailiang Education Group performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLG has high quality earnings.

Growing Profit Margin: HLG's current net profit margins (23.7%) are higher than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: HLG's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: HLG's earnings growth over the past year (41.9%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: HLG earnings growth over the past year (41.9%) exceeded the Consumer Services industry 17.6%.


Return on Equity

High ROE: HLG's Return on Equity (20.6%) is considered high.


Next Steps

Financial Health

How is Hailiang Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: HLG's short term assets (CN¥1.6B) exceed its short term liabilities (CN¥1.0B).

Long Term Liabilities: HLG's short term assets (CN¥1.6B) exceed its long term liabilities (CN¥23.4M).


Debt to Equity History and Analysis

Debt Level: HLG is debt free.

Reducing Debt: HLG had no debt 5 years ago.

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

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


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if HLG'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 HLG'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?

3.6yrs

Average management tenure


CEO

Ming Wang (58yo)

6.17s

Tenure

Mr. Ming Wang has been the Chairman of the Board of Directors and Chief Executive Officer at Hailiang Education Group Inc. since 2014. Mr. Wang served as vice president of Zhejiang Hailiang Co., Ltd. (alte ...


Leadership Team

NamePositionTenureCompensationOwnership
Ming Wang
Chairman & CEO6.17yrsno datano data
Jian guo Yu
Chief Financial Officer2.25yrsno datano data
Cuiwei Ye
Principal General & Director2.25yrsno datano data
Litao Qiu
Board Secretary2.58yrsno datano data
Auto Yau
Board Secretaryno datano datano data
Junwei Chen
President of Hailiang Management1yrno datano data
Jin Xie
Vice Principal of Discipline & Strategic developmentno datano datano data
Honggang Xu
Vice principal of Hailiang College of Education Research6.17yrsno datano data
Jianjun Jiang
Vice Principal of Teaching Admin of Middle School Basic Education Program & Enrollment Status Mgmt.6.17yrsno datano data
Bailian Jin
Vice Principal of Operation of All Schools in Hangzhou City & Overall Supervision4.58yrsno datano data

3.6yrs

Average Tenure

52yo

Average Age

Experienced Management: HLG's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ming Wang
Chairman & CEO6.17yrsno datano data
Cuiwei Ye
Principal General & Director2.25yrsno datano data
Xiaohua Gu
Independent Director4.67yrsno datano data
Ken He
Independent Director4.67yrsno datano data
Xiaofeng Cheng
Independent Director3.42yrsno datano data

4.7yrs

Average Tenure

45yo

Average Age

Experienced Board: HLG's board of directors are considered experienced (4.8 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

Hailiang Education Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hailiang Education Group Inc.
  • Ticker: HLG
  • Exchange: NasdaqGM
  • Founded: 1995
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.493b
  • Shares outstanding: 25.78m
  • Website: https://www.hailiangedu.com

Number of Employees


Location

  • Hailiang Education Group Inc.
  • 1508 Binsheng Road
  • Binjiang District
  • Hangzhou
  • Zhejiang Province
  • 310051
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLGNasdaqGM (Nasdaq Global Market)YesSPON ADR EACH REPR 16 ORD SHSUSUSDJul 2015
H0XBST (Boerse-Stuttgart)YesSPON ADR EACH REPR 16 ORD SHSDEEURJul 2015
0A11LSE (London Stock Exchange)YesSPON ADR EACH REPR 16 ORD SHSGBUSDJul 2015

Biography

Hailiang Education Group Inc., through its subsidiaries, provides K-12 educational services in the People’s Republic of China. The company operates 9 affiliated schools; and 27 managed schools. It also offers management consulting, educational training and logistic, hotel management, overseas study consulting, study trip, and procurement and transportation services, as well as after-school enrichment program. In addition, the company’s schools offer basic educational programs and international programs at the primary school, middle school, and high school levels, as well as courses designed for students, such as A-levels courses for the United Kingdom universities, SAT courses for the United States universities, and VCE courses for the Australia universities for students planning to apply to undergraduate programs in the United States, the United Kingdom, and Australia. As of June 30, 2019, it had 22,819 students enrolled in its affiliated schools; and 38,290 students enrolled in its managed schools. Hailiang Education Group Inc. was founded in 1995 and is based in Hangzhou, 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 Analysis2020/03/31 03:50
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.