NYSE:DL

Stock Analysis Report

China Distance Education Holdings

Executive Summary

China Distance Education Holdings Limited provides online and offline education services, and sells related products in the People’s Republic of China.

Snowflake

Fundamentals

Undervalued with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

DL

-0.3%

US Consumer Services

1.0%

US Market


1 Year Return

-14.8%

DL

27.5%

US Consumer Services

8.0%

US Market

Return vs Industry: DL underperformed the US Consumer Services industry which returned 27.5% over the past year.

Return vs Market: DL underperformed the US Market which returned 8% over the past year.


Shareholder returns

DLIndustryMarket
7 Day2.2%-0.3%1.0%
30 Day18.0%-0.3%-0.07%
90 Day20.3%-3.4%-1.0%
1 Year-14.8%-14.8%28.2%27.5%10.4%8.0%
3 Year-48.7%-52.7%102.8%91.8%46.2%36.7%
5 Year-51.1%-59.8%142.4%117.0%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is China Distance Education Holdings 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: DL ($6.17) is trading below our estimate of fair value ($14.75)

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


Price To Earnings Ratio

PE vs Industry: DL is good value based on its PE Ratio (12x) compared to the Consumer Services industry average (26.2x).

PE vs Market: DL is good value based on its PE Ratio (12x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DL is overvalued based on its PB Ratio (3.2x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is China Distance Education Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DL's forecast earnings growth (16.2% per year) is above the savings rate (2.7%).

Earnings vs Market: DL's earnings (16.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: DL's earnings are forecast to grow, but not significantly.

Revenue vs Market: DL's revenue (10.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: DL's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DL's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has China Distance Education Holdings performed over the past 5 years?

-16.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DL's earnings have declined by -16% per year over the past 5 years.

Accelerating Growth: DL's earnings growth over the past year (119.8%) exceeds its 5-year average (-16% per year).

Earnings vs Industry: DL earnings growth over the past year (119.8%) exceeded the Consumer Services industry 3.9%.


Return on Equity

High ROE: DL's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: DL's Return on Assets is below or equal to the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: DL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is China Distance Education Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DL's short term assets ($163.0M) do not cover its short term liabilities ($196.3M)

Long Term Liabilities: DL's short term assets (163.0M) exceeds its long term liabilities (48.6M)


Debt to Equity History and Analysis

Debt Level: DL's debt to equity ratio (34.8%) is considered satisfactory

Reducing Debt: DL's debt to equity ratio has increased from 19.5% to 34.8% over the past 5 years.

Debt Coverage: DL's debt is well covered by operating cash flow (111.8%).

Interest Coverage: DL's interest payments on its debt are well covered by EBIT (16.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: DL's debt is covered by short term assets (assets are 3.638440x debt).


Next Steps

Dividend

What is China Distance Education Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if DL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DL'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 Distance Education Holdings's salary, the management and board of directors tenure and is there insider trading?


CEO

Zhengdong Zhu (51yo)

0yrs

Tenure

0

Mr. Zhengdong Zhu serves as the Chief Executive Officer of China Distance Education Limited. Mr. Zhu co-founded China Distance Education Holdings Limited in 2000 and serves as its Chairman of the Board of  ...


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,030,20927 Dec 18
Zhengdong Zhu
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares130,431
Max PriceUS$7.90
BuyUS$2,520,13509 Nov 18
Zhengdong Zhu
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares260,603
Max PriceUS$9.67

Ownership Breakdown


Management Team

  • Mark Marostica (57yo)

    Co-Chief Financial Officer

    • Tenure: 0yrs
  • Baohong Yin (51yo)

    Co-Founder & Deputy Chairman of the Board of Directors

    • Tenure: 0yrs
  • Zhengdong Zhu (51yo)

    Co-Founder

    • Tenure: 0yrs
  • Philip Chan (48yo)

    Co-Chief Financial Officer

    • Tenure: 0yrs
  • Feijia Ji (45yo)

    Senior EVP & Director

    • Tenure: 0yrs
  • Liang Zheng

    Senior Vice President

    • Tenure: 0yrs

Board Members

  • Carol Yu (57yo)

    Independent Director

    • Tenure: 0yrs
  • Baohong Yin (51yo)

    Co-Founder & Deputy Chairman of the Board of Directors

    • Tenure: 0yrs
  • Zhengdong Zhu (51yo)

    Co-Founder

    • Tenure: 0yrs
  • Liankui Hu (68yo)

    Independent Director

    • Tenure: 0yrs
  • Xiaoshu Chen (56yo)

    Independent Director

    • Tenure: 0yrs
  • Annabelle Long (46yo)

    Independent Director

    • Tenure: 10.9yrs
  • Feijia Ji (45yo)

    Senior EVP & Director

    • Tenure: 0yrs

Company Information

China Distance Education Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Distance Education Holdings Limited
  • Ticker: DL
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$207.023m
  • Shares outstanding: 33.55m
  • Website: https://www.cdeledu.com

Number of Employees


Location

  • China Distance Education Holdings Limited
  • Xueyuan International Tower
  • 18th Floor
  • Beijing
  • 100083
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLNYSE (New York Stock Exchange)YesSPONS ADR EACH REP 4 ORD SH USD0.0001USUSDJul 2008
0CDADB (Deutsche Boerse AG)YesSPONS ADR EACH REP 4 ORD SH USD0.0001DEEURJul 2008

Biography

China Distance Education Holdings Limited provides online and offline education services, and sells related products in the People’s Republic of China. It operates in three segments: Professional Education ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:10
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.