NasdaqCM:WAFU

Stock Analysis Report

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Executive Summary

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.4%

WAFU

-8.4%

US Consumer Services

-0.4%

US Market


1 Year Return

73.5%

WAFU

35.6%

US Consumer Services

18.3%

US Market

Return vs Industry: WAFU exceeded the US Consumer Services industry which returned 35.6% over the past year.

Return vs Market: WAFU exceeded the US Market which returned 18.3% over the past year.


Shareholder returns

WAFUIndustryMarket
7 Day-6.4%-8.4%-0.4%
30 Day57.7%-0.2%8.0%
90 Day-16.1%2.0%9.4%
1 Year73.5%73.5%36.0%35.6%21.0%18.3%
3 Yearn/a63.4%57.6%42.1%32.7%
5 Yearn/a250.8%225.4%85.6%64.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wah Fu 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: WAFU ($4.53) is trading below our estimate of fair value ($10.26)

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


Price To Earnings Ratio

PE vs Industry: WAFU is unprofitable, so we can't compare its PE Ratio to the US Consumer Services industry average.

PE vs Market: WAFU is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WAFU is good value based on its PB Ratio (2.2x) compared to the US Consumer Services industry average (2.6x).


Next Steps

Future Growth

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

54.9%

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 Wah Fu 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 Wah Fu Education Group performed over the past 5 years?

-92.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAFU is currently unprofitable.

Growing Profit Margin: WAFU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WAFU is unprofitable, and losses have increased over the past 5 years at a rate of 92.3% per year.

Accelerating Growth: Unable to compare WAFU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WAFU is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (3%).


Return on Equity

High ROE: WAFU has a negative Return on Equity (-17.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wah Fu Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: WAFU's short term assets ($10.3M) exceed its short term liabilities ($2.9M).

Long Term Liabilities: WAFU's short term assets ($10.3M) exceed its long term liabilities ($361.6K).


Debt to Equity History and Analysis

Debt Level: WAFU is debt free.

Reducing Debt: WAFU has not had any debt for past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable WAFU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WAFU is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 24.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.2yrs

Average board tenure


CEO

Xinghui Yang (50 yo)

3.92yrs

Tenure

Mr. Xinghui Yang serves as Chief Executive Officer of Wah Fu Education Group Limited since November 2016 and serves its Director since March 2013. Mr. Yang serves as Chief Executive Officer of Beijing Digi ...


Board Members

NamePositionTenureCompensationOwnership
Yang Yu
Chairman of the Board3.92yrsno data33.96%
$ 6.7m
Xinghui Yang
CEO & Director3.92yrsno data31.77%
$ 6.3m
Defang Li
Independent Director2.17yrsno datano data
Yik C. Chan
Independent Director2.17yrsno datano data
Wenxiang Xing
Independent Director1.83yrsno datano data

2.2yrs

Average Tenure

57yo

Average Age

Experienced Board: WAFU's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

Wah Fu Education Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wah Fu Education Group Limited
  • Ticker: WAFU
  • Exchange: NasdaqCM
  • Founded: 1999
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$19.846m
  • Shares outstanding: 4.38m
  • Website: https://www.edu-edu.com

Number of Employees


Location

  • Wah Fu Education Group Limited
  • L207b, Hesheng Fortune Plaza
  • No.13 Deshengmenwai Street
  • Beijing
  • 100088
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WAFUNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDApr 2019

Biography

Wah Fu Education Group Limited, through its subsidiaries, provides online exam preparation services and related technology solutions in the People’s Republic of China. The company operates in two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:56
End of Day Share Price2020/10/23 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.