NYSE:BEDU

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Bright Scholar Education Holdings

Executive Summary

Bright Scholar Education Holdings Limited, an education service company, operates K-12 schools in China.


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Bright Scholar Education Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.1%

BEDU

2.6%

US Consumer Services

1.5%

US Market


1 Year Return

-14.9%

BEDU

29.9%

US Consumer Services

6.9%

US Market

Return vs Industry: BEDU underperformed the US Consumer Services industry which returned 31.8% over the past year.

Return vs Market: BEDU underperformed the US Market which returned 5.3% over the past year.


Shareholder returns

BEDUIndustryMarket
7 Day-0.1%2.6%1.5%
30 Day4.6%13.9%5.9%
90 Day29.1%35.8%17.9%
1 Year-14.2%-14.9%30.3%29.9%9.2%6.9%
3 Year-37.3%-37.9%73.4%66.9%36.4%27.5%
5 Yearn/a203.9%181.3%64.9%47.0%

Price Volatility Vs. Market

How volatile is Bright Scholar Education Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bright Scholar Education Holdings undervalued compared to its fair value and its price relative to the market?

21.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BEDU ($8.2) is trading above our estimate of fair value ($5.67)

Significantly Below Fair Value: BEDU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BEDU is good value based on its PE Ratio (21.5x) compared to the US Consumer Services industry average (30.5x).

PE vs Market: BEDU is poor value based on its PE Ratio (21.5x) compared to the US market (16.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BEDU's PB Ratio (2.4x) is in line with the US Consumer Services industry average.


Next Steps

Future Growth

How is Bright Scholar Education Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BEDU's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if BEDU's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEDU's revenue (14.4% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: BEDU's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEDU's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Bright Scholar Education Holdings performed over the past 5 years?

41.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEDU has high quality earnings.

Growing Profit Margin: BEDU's current net profit margins (9.6%) are lower than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: BEDU has become profitable over the past 5 years, growing earnings by 41.3% per year.

Accelerating Growth: BEDU's earnings growth over the past year (7.8%) is below its 5-year average (41.3% per year).

Earnings vs Industry: BEDU earnings growth over the past year (7.8%) underperformed the Consumer Services industry 18.3%.


Return on Equity

High ROE: BEDU's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Bright Scholar Education Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BEDU's short term assets (CN¥4.5B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: BEDU's short term assets (CN¥4.5B) exceed its long term liabilities (CN¥4.1B).


Debt to Equity History and Analysis

Debt Level: BEDU's debt to equity ratio (89.8%) is considered high.

Reducing Debt: BEDU had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: BEDU's debt is well covered by operating cash flow (23.8%).

Interest Coverage: BEDU's interest payments on its debt are well covered by EBIT (37.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Bright Scholar Education Holdings's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEDU's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: BEDU's dividend (1.19%) is low compared to the top 25% of dividend payers in the US market (4.59%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether BEDU's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BEDU's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.7%), BEDU's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEDU's dividends in 3 years are forecast to be well covered by earnings (27.3% payout ratio).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Zi Chen

0.17

Tenure

Ms. Zi Chen has been Co-Chief Executive Officer of Complementary Education Service Business at Bright Scholar Education Holdings Limited since May 8, 2020. Mr. Chen was the general manager responsible for  ...


Leadership Team

NamePositionTenureCompensationOwnership
Zi Chen
Co-Chief Executive Officer of Complementary Education Service Business0.17yrno datano data
Junli He
Executive Vice Chairman1.5yrsno data4.4% CN¥43.5m
Dongmei Li
Chief Financial Officer3.42yrsno datano data
Ruby Yim
Investor Relations Counselno datano datano data
Yibo Wen
VP & Chief Human Resource Officer1yrno datano data
Wanmei Li
Co-Chief Executive Officer of Domestic K-12 Education Business0.17yrno datano data

0.6yrs

Average Tenure

46yo

Average Age

Experienced Management: BEDU's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Junli He
Executive Vice Chairman1.5yrsno data4.4% CN¥43.5m
Ronald J. Packard
Independent Director2.17yrsno datano data
Peter Andrew Schloss
Independent Director3.17yrsno datano data
Huiyan Yang
Chairpersonno datano data77.18% CN¥762.9m
Jun Zhao
Independent Director3.17yrsno datano data
Shuting Zhou
Independent Director3.17yrsno datano data

3.2yrs

Average Tenure

51.5yo

Average Age

Experienced Board: BEDU's board of directors are considered experienced (3.2 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

Bright Scholar Education Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bright Scholar Education Holdings Limited
  • Ticker: BEDU
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$988.503m
  • Shares outstanding: 120.55m
  • Website: https://www.brightscholar.com

Number of Employees


Location

  • Bright Scholar Education Holdings Limited
  • No.1, Country Garden Road
  • Beijiao Town
  • Foshan
  • Guangdong Province
  • 528300
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEDUNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDMay 2017

Biography

Bright Scholar Education Holdings Limited, an education service company, operates K-12 schools in China. Its schools comprise international and bilingual schools, and kindergartens. The company also offers a range of complementary education services, including international camps and after-school programs, as well as international education consulting services; and Chinese government-mandated curriculum services for students. As of November 30, 2019, it operated 80 schools across 10 provinces in China, as well as 8 schools internationally with a total student capacity of 67,194 students. Bright Scholar Education Holdings Limited was founded in 1994 and is based in Foshan, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 00:05
End of Day Share Price2020/07/14 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.