NYSE:COE

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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. More Details


Snowflake Analysis

High growth potential and fair value.


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

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


Market Performance


7 Day Return

7.0%

COE

6.7%

US Consumer Services

1.8%

US Market


1 Year Return

186.8%

COE

39.3%

US Consumer Services

14.2%

US Market

Return vs Industry: COE exceeded the US Consumer Services industry which returned 39.3% over the past year.

Return vs Market: COE exceeded the US Market which returned 14.2% over the past year.


Shareholder returns

COEIndustryMarket
7 Day7.0%6.7%1.8%
30 Day-12.7%-0.3%0.04%
90 Day-22.8%15.6%9.8%
1 Year186.8%186.8%39.8%39.3%16.7%14.2%
3 Year53.9%53.9%54.9%49.4%41.6%32.2%
5 Yearn/a252.5%227.4%90.9%69.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COE ($21.08) is trading below our estimate of fair value ($80.08)

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


Price To Earnings Ratio

PE vs Industry: COE is poor value based on its PE Ratio (37.8x) compared to the US Consumer Services industry average (33.1x).

PE vs Market: COE is poor value based on its PE Ratio (37.8x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: COE is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: COE has negative assets, so we can't compare its PB Ratio to the US Consumer Services industry average.


Next Steps

Future Growth

How is China Online Education Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

56.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COE's forecast earnings growth (56.3% per year) is above the savings rate (2.2%).

Earnings vs Market: COE's earnings (56.3% per year) are forecast to grow faster than the US market (23.3% per year).

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

Revenue vs Market: COE's revenue (21.5% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: COE's revenue (21.5% per year) 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 COE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COE has high quality earnings.

Growing Profit Margin: COE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: COE has become profitable over the past 5 years, growing earnings by 23% per year.

Accelerating Growth: COE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: COE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (10.1%).


Return on Equity

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


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 is debt free.

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

Debt Coverage: COE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: COE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate COE'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 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

  • Explore strong dividend paying companies in the Consumer Services industry.

Management

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

7.8yrs

Average management tenure


CEO

Jack Huang (34 yo)

7.83yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Liming Zhang
Co-Founder & COO7.83yrsno data0.23%
CN¥ 1.0m
Jiajia Huang
Founder7.83yrsno data12.87%
CN¥ 58.3m
Ting Shu
Co-Founder & Director7.83yrsno data5.43%
CN¥ 24.6m
Min Xu
Chief Financial Officer1.67yrsno datano data
Judy Piao
Head of Investor Relationsno datano datano data
Michael Farley
Head of North American Operations2.92yrsno datano data

7.8yrs

Average Tenure

40.5yo

Average Age

Experienced Management: COE's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jiajia Huang
Founder7.83yrsno data12.87%
CN¥ 58.3m
Ting Shu
Co-Founder & Director7.83yrsno data5.43%
CN¥ 24.6m
Frank Lin
Director7.25yrsno datano data
Chia-Hung Yang
Independent Director4.25yrsno datano data
Xiaoguang Wu
Independent Director4.25yrsno datano data

7.3yrs

Average Tenure

44yo

Average Age

Experienced Board: COE's board of directors are considered experienced (7.3 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 been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

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$453.372m
  • Shares outstanding: 21.51m
  • 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)YesADR EACH REPR 15 ORD SPONUSUSDJun 2016
C4GADB (Deutsche Boerse AG)YesADR EACH REPR 15 ORD SPONDEEURJun 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. The company operates online an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 07:15
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.