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HLG

Hailiang Education GroupNasdaqGM:HLG Stock Report

Last Price

US$11.03

Market Cap

US$284.3m

7D

-13.3%

1Y

-83.2%

Updated

21 Jan, 2022

Data

Company Financials
HLG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends0/6

HLG Stock Overview

Hailiang Education Group Inc. provides K-12 educational and management services in the People’s Republic of China.

Hailiang Education Group Competitors

Costco Wholesale

NasdaqGS:COST

US$214.1b

China Maple Leaf Educational Systems

SEHK:1317

HK$1.7b

Virscend Education

SEHK:1565

HK$1.4b

Wisdom Education International Holdings

SEHK:6068

HK$1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Hailiang Education Group
Historical stock prices
Current Share PriceUS$11.03
52 Week HighUS$65.87
52 Week LowUS$10.31
Beta-0.15
1 Month Change-3.65%
3 Month Change-64.19%
1 Year Change-83.19%
3 Year Change-70.97%
5 Year Change26.04%
Change since IPO22.56%

Recent News & Updates

Dec 29

Hailiang Sees The Writing On The China Blackboard

China's sweeping private education reform, known locally as “double reduction,” included the banning of after-school tutoring on weekends and public holidays, and the requirement that all private sector operators get official education licenses and run on a non-profit basis. Hailiang was relatively less affected by recent government-led cleanup of private education sector, but still faces large uncertainties. Hailiang Education Group announced last week that it has received a buyout offer from a group led by its founder Feng Hailiang.

Nov 16

Hailiang Education Walks Fine Line Between Growth And Raising Regulatory Ire

Hailiang Education has reported solid revenue and profit growth for its latest fiscal year before sweeping regulatory changes took effect. Company’s high-growth after-school tutoring services are likely to take big hit from regulatory changes, as future uncertainty weighs on its shares. With the tutoring business most likely set to leave the company’s future financials, Hailiang needs to find growth somewhere else.

Shareholder Returns

HLGUS Consumer ServicesUS Market
7D-13.3%-3.2%-4.0%
1Y-83.2%-67.8%6.6%

Return vs Industry: HLG underperformed the US Consumer Services industry which returned -67.8% over the past year.

Return vs Market: HLG underperformed the US Market which returned 6.6% over the past year.

Price Volatility

Is HLG's price volatile compared to industry and market?
HLG volatility
HLG Average Weekly Movement11.7%
Consumer Services Industry Average Movement9.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: HLG is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: HLG's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
19952,252Junwei Chenhttps://www.hailiangedu.com

Hailiang Education Group Inc. provides K-12 educational and management services in the People’s Republic of China. The company operates 14 affiliated schools; and 27 managed schools. It offers K-12 student management, high school curriculum education, and operation and management services, including branding, academic management, education resources, school culture, admission, finance, human resources, procurement, IT, internal audit, and property and logistics management services, as well as after-school enrichment, accommodations, and transportation services.

Hailiang Education Group Fundamentals Summary

How do Hailiang Education Group's earnings and revenue compare to its market cap?
HLG fundamental statistics
Market CapCN¥1.80b
Earnings (TTM)CN¥483.05m
Revenue (TTM)CN¥1.38b

3.7x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HLG income statement (TTM)
RevenueCN¥1.38b
Cost of RevenueCN¥728.59m
Gross ProfitCN¥647.20m
ExpensesCN¥164.16m
EarningsCN¥483.05m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)18.74
Gross Margin47.04%
Net Profit Margin35.11%
Debt/Equity Ratio2.1%

How did HLG perform over the long term?

See historical performance and comparison

Valuation

Is Hailiang Education Group 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: HLG ($11.03) is trading below our estimate of fair value ($139.53)

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


Price To Earnings Ratio

PE vs Industry: HLG is good value based on its PE Ratio (3.7x) compared to the US Consumer Services industry average (20.1x).

PE vs Market: HLG is good value based on its PE Ratio (3.7x) compared to the US market (16.7x).


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 good value based on its PB Ratio (0.8x) compared to the US Consumer Services industry average (1.6x).


Future Growth

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

27.6%

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.


Past Performance

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

26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HLG has high quality earnings.

Growing Profit Margin: HLG's current net profit margins (35.1%) are higher than last year (34.1%).


Past Earnings Growth Analysis

Earnings Trend: HLG's earnings have grown significantly by 26% per year over the past 5 years.

Accelerating Growth: HLG's earnings growth over the past year (38%) exceeds its 5-year average (26% per year).

Earnings vs Industry: HLG earnings growth over the past year (38%) exceeded the Consumer Services industry 6%.


Return on Equity

High ROE: HLG's Return on Equity (21.7%) is considered high.


Financial Health

How is Hailiang Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: HLG's short term assets (CN¥849.7M) do not cover its short term liabilities (CN¥1.0B).

Long Term Liabilities: HLG's short term assets (CN¥849.7M) exceed its long term liabilities (CN¥35.4M).


Debt to Equity History and Analysis

Debt Level: HLG has more cash than its total debt.

Reducing Debt: Insufficient data to determine if HLG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HLG's debt is well covered by operating cash flow (1961.6%).

Interest Coverage: HLG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Hailiang Education Group 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 recent payouts.

High Dividend: Unable to evaluate HLG'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 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?

4.4yrs

Average management tenure


CEO

Junwei Chen (29 yo)

1.58yrs

Tenure

Mr. Junwei Chen serves Chairman of the Board at Hailiang Education Group Inc. since June 23, 2020. He serves as Chief Executive Officer and Director at Hailiang Education Group Inc. since June 23, 2020. He...


Leadership Team

Experienced Management: HLG's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: HLG's board of directors are considered experienced (5.3 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 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
  • Implied Market Cap: US$284.333m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:55
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.