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HLG

Hailiang Education Group NasdaqGM:HLG Stock Report

Last Price

US$13.60

Market Cap

US$350.6m

7D

1.5%

1Y

-62.0%

Updated

18 Aug, 2022

Data

Company Financials
HLG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
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

Price History & Performance

Summary of all time highs, changes and price drops for Hailiang Education Group
Historical stock prices
Current Share PriceUS$13.60
52 Week HighUS$38.00
52 Week LowUS$9.28
Beta-0.050
1 Month Change2.49%
3 Month Change8.11%
1 Year Change-61.98%
3 Year Change-78.58%
5 Year Change-12.82%
Change since IPO51.11%

Recent News & Updates

Jul 13

Hailiang Education gets 2 deficiency notices from Nasdaq

Hailiang Education (NASDAQ:HLG) said Wednesday it received 2 deficiency notices from Nasdaq as it is not in compliance with continued listing rules. This is because HLG failed to timely file its semi-annual financial information for the half year ended Dec. 31 with the SEC and failed to hold an annual shareholder meeting within 12 months of the end of its fiscal year. For its H1 2022 financial report, HLG has 60 days from the date of the notice to submit a plan to regain compliance. If Nasdaq accepts the plan, it may grant an exception till Dec. 27 to regain compliance. For the 2022 AGM, HLG has 45 days to submit a plan to regain compliance. If the plan is accepted, Nasdaq may grant HLG an extension till Dec. 27 to regain compliance. HLG failed to timely file the financial report and hold the AGM as it has been focusing on its going private deal.

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.

Shareholder Returns

HLGUS Consumer ServicesUS Market
7D1.5%0.6%1.4%
1Y-62.0%-22.3%-8.4%

Return vs Industry: HLG underperformed the US Consumer Services industry which returned -23.5% over the past year.

Return vs Market: HLG underperformed the US Market which returned -9% over the past year.

Price Volatility

Is HLG's price volatile compared to industry and market?
HLG volatility
HLG Average Weekly Movement5.6%
Consumer Services Industry Average Movement9.1%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: HLG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HLG's weekly volatility (6%) has been stable over the past year.

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 CapUS$350.58m
Earnings (TTM)US$71.18m
Revenue (TTM)US$202.74m

4.9x

P/E Ratio

1.7x

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
Other 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
We’ve recently updated our valuation analysis.

Valuation

Is HLG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HLG?

Other financial metrics that can be useful for relative valuation.

HLG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA2.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does HLG's PE Ratio compare to its peers?

HLG PE Ratio vs Peers
The above table shows the PE ratio for HLG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.3x
VTRU Vitru
36.5x36.8%US$514.5m
UTI Universal Technical Institute
12.8x30.7%US$241.4m
LINC Lincoln Educational Services
8.2x-0.9%US$174.3m
PRDO Perdoceo Education
7.7x-19.1%US$846.3m
HLG Hailiang Education Group
4.9xn/aUS$350.6m

Price-To-Earnings vs Peers: HLG is good value based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (16.3x).


Price to Earnings Ratio vs Industry

How does HLG's PE Ratio compare vs other companies in the US Consumer Services Industry?

Price-To-Earnings vs Industry: HLG is good value based on its Price-To-Earnings Ratio (4.9x) compared to the US Consumer Services industry average (19.1x)


Price to Earnings Ratio vs Fair Ratio

What is HLG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HLG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HLG's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of HLG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HLG ($13.6) is trading below our estimate of fair value ($138.49)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


32.0%

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.


Discover growth companies

  • Examine whether Hailiang Education Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


38.0%

Last years 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: Insufficient data to determine if HLG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare HLG's past year earnings growth to its 5-year average.

Earnings vs Industry: HLG earnings growth over the past year (38%) exceeded the Consumer Services industry 3%.


Return on Equity

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


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Financial Health

How is Hailiang Education Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HLG has not reported any payouts.


Discover strong dividend paying companies

Management

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

5.0yrs

Average management tenure


CEO

Junwei Chen (30 yo)

2.17yrs

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 seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: HLG's board of directors are considered experienced (5.8 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 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$350.583m
  • 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 Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 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.