NYSE:COE

Stock Analysis Report

China Online Education Group

Executive Summary

China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines.

Snowflake

Fundamentals

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

COE

-0.2%

US Consumer Services

0.5%

US Market


1 Year Return

-20.4%

COE

22.6%

US Consumer Services

6.8%

US Market

Return vs Industry: COE underperformed the US Consumer Services industry which returned 22.6% over the past year.

Return vs Market: COE underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

COEIndustryMarket
7 Day0.1%-0.2%0.5%
30 Day-5.7%-1.3%-0.8%
90 Day14.2%-2.5%-0.9%
1 Year-20.4%-20.4%23.1%22.6%9.2%6.8%
3 Year-62.1%-62.1%106.4%95.2%45.6%36.2%
5 Yearn/a141.9%116.7%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Online Education Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether China Online Education Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as China Online Education Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of COE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through China Online Education Group regulatory filings.
  • Explore potentially undervalued companies in the Consumer Services industry.

Future Growth

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

34.3%

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 China Online 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 China Online Education Group performed over the past 5 years?

-3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: COE is unprofitable, and losses have increased over the past 5 years at a rate of -3.7% per year.

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

Earnings vs Industry: COE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (5.5%).


Return on Equity

High ROE: COE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: COE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: COE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Online Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: COE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: COE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: COE has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: COE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: COE has a low level of unsold assets or inventory.

Debt Coverage by Assets: COE has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: Insufficient data to determine if COE has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if COE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is China Online 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 COE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if COE'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 COE'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 China Online Education Group's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Jack Huang (33yo)

6.9yrs

Tenure

0

Mr. Jiajia Huang, also known as Jack, is the Founder of China Online Education Group and has been its Chairman and Chief Executive Officer since its inception November 2012. Mr. Huang served as an Operatio ...


Management Age and Tenure

6.9yrs

Average Tenure

39.5yo

Average Age

Experienced Management: COE's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

42.5yo

Average Age

Experienced Board: COE's board of directors are considered experienced (5.8 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

  • Min Xu (46yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Jack Huang (33yo)

    Founder

    • Tenure: 6.9yrs
  • Ting Shu (33yo)

    Co-Founder

    • Tenure: 6.9yrs
  • Liming Zhang (49yo)

    Co-Founder & COO

    • Tenure: 6.9yrs
  • Michael Farley

    Head of North American Operations

    • Tenure: 2yrs
  • Judy Piao

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Hurst Lin (54yo)

    Director

    • Tenure: 6.3yrs
  • Conor Yang (56yo)

    Independent Director

    • Tenure: 3.3yrs
  • Free Wu (43yo)

    Independent Director

    • Tenure: 3.3yrs
  • Wei Li (42yo)

    Director

    • Tenure: 5.3yrs
  • Jack Huang (33yo)

    Founder

    • Tenure: 6.9yrs
  • Ting Shu (33yo)

    Co-Founder

    • Tenure: 6.9yrs

Company Information

China Online Education Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Online Education Group
  • Ticker: COE
  • Exchange: NYSE
  • Founded: 2011
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$141.419m
  • Shares outstanding: 20.41m
  • Website: https://www.51talk.com

Number of Employees


Location

  • China Online Education Group
  • Deshi Building North
  • 6th Floor
  • Beijing
  • 100085
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COENYSE (New York Stock Exchange)YesSPONSORED ADRUSUSDJun 2016

Biography

China Online Education Group, through its subsidiaries, provides online English language education services to students in the People's Republic of China and the Philippines. It operates online and mobile  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:29
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.