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

Fundamentals

Excellent balance sheet with solid 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


Market Performance


7 Day Return

-0.9%

HLG

-3.3%

US Consumer Services

0.07%

US Market


1 Year Return

7.1%

HLG

25.0%

US Consumer Services

8.9%

US Market

Return vs Industry: HLG underperformed the US Consumer Services industry which returned 25% over the past year.

Return vs Market: HLG underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HLGIndustryMarket
7 Day-0.9%-3.3%0.07%
30 Day2.1%-3.6%-0.3%
90 Day8.4%-4.6%-1.6%
1 Year7.1%7.1%25.6%25.0%11.3%8.9%
3 Year668.8%668.8%97.1%86.6%46.3%36.8%
5 Yearn/a130.9%106.8%62.1%44.3%

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?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HLG ($65.35) is trading below our estimate of fair value ($82.64)

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


Price To Earnings Ratio

PE vs Industry: HLG is poor value based on its PE Ratio (40.6x) compared to the Consumer Services industry average (25.8x).

PE vs Market: HLG is poor value based on its PE Ratio (40.6x) compared to the US market (17.8x).


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 (7.2x) compared to the US Consumer Services industry average (2.2x).


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?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLG's forecast earnings growth (2% per year) is below the savings rate (2.7%).

Earnings vs Market: HLG's earnings (2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: HLG's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if HLG's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HLG's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HLG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLG's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: HLG's earnings growth over the past year (31.8%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: HLG earnings growth over the past year (31.8%) exceeded the Consumer Services industry 3.9%.


Return on Equity

High ROE: HLG's Return on Equity (18.7%) is considered low.


Return on Assets

ROA vs Industry: HLG has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: HLG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hailiang Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: HLG's short term assets (CN¥1.8B) exceeds its short term liabilities (CN¥806.4M)

Long Term Liabilities: HLG's short term assets (1.8B) exceeds its long term liabilities (7.3M)


Debt to Equity History and Analysis

Debt Level: HLG's debt to equity ratio (5.9%) is considered satisfactory

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 (693.1%).

Interest Coverage: HLG earns more interest than it pays, so 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: HLG's debt is covered by short term assets (assets are 17.798360x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Hailiang Education Group's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Ming Wang (58yo)

5.8yrs

Tenure

0

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 ...


Management Age and Tenure

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: HLG's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

45yo

Average Age

Experienced Board: HLG's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ming Wang (58yo)

    Chairman & CEO

    • Tenure: 5.8yrs
  • Jin Xie (52yo)

    Vice Principal of Discipline & Strategic development

    • Tenure: 0yrs
  • Honggang Xu (60yo)

    Vice principal of Hailiang College of Education Research

    • Tenure: 5.8yrs
  • Jianjun Jiang (52yo)

    Vice Principal of Teaching Admin of Middle School Basic Education Program & Enrollment Status Mgmt.

    • Tenure: 5.8yrs
  • Bailian Jin (46yo)

    Vice Principal of Operation of All Schools in Hangzhou City & Overall Supervision

    • Tenure: 4.2yrs
  • Litao Qiu (53yo)

    Board Secretary

    • Tenure: 2.2yrs
  • Jian guo Yu (46yo)

    Chief Financial Officer

    • Tenure: 1.9yrs
  • Auto Yau

    Board Secretary

    • Tenure: 0yrs
  • Cuiwei Ye (60yo)

    Principal General & Director

    • Tenure: 1.9yrs
  • Junwei Chen (28yo)

    President of Hailiang Management

    • Tenure: 0.6yrs

Board Members

  • Fred Gu (45yo)

    Independent Director

    • Tenure: 4.3yrs
  • Ken He (39yo)

    Independent Director

    • Tenure: 4.3yrs
  • Ming Wang (58yo)

    Chairman & CEO

    • Tenure: 5.8yrs
  • Xiaofeng Cheng (42yo)

    Independent Director

    • Tenure: 3yrs
  • Cuiwei Ye (60yo)

    Principal General & Director

    • Tenure: 1.9yrs

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$1.685b
  • 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 off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:29
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.