China Distance Education Holdings
Market Cap
US$288.6m
Last Updated
2020/02/16 00:58 UTC
Data Sources
Company Financials +
Executive Summary
China Distance Education Holdings Limited primarily provides online and offline education services, and sells related products in the People’s Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with reasonable growth potential.
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
Stable Share Price: DL's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-2.2%
DL
2.7%
US Consumer Services
1.8%
US Market
1 Year Return
18.8%
DL
35.0%
US Consumer Services
20.1%
US Market
Return vs Industry: DL underperformed the US Consumer Services industry which returned 35.1% over the past year.
Return vs Market: DL underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| DL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.2% | 2.7% | 1.8% |
| 30 Day | -5.0% | 2.8% | 1.4% |
| 90 Day | 20.0% | 18.4% | 8.8% |
| 1 Year | 18.8%18.8% | 35.4%35.0% | 22.7%20.1% |
| 3 Year | -10.8%-14.7% | 124.0%113.8% | 50.1%40.4% |
| 5 Year | -43.1%-50.8% | 198.6%164.7% | 72.9%53.9% |
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
1 week ago | Simply Wall St
Is There Now An Opportunity In China Distance Education Holdings Limited (NYSE:DL)?3 weeks ago | Simply Wall St
What Kind Of Share Price Volatility Should You Expect For China Distance Education Holdings Limited (NYSE:DL)?1 month ago | Simply Wall St
China Distance Education Holdings Limited (NYSE:DL) Has A ROE Of 13%Valuation
Is China Distance Education Holdings undervalued compared to its fair value and its price relative to the market?
38.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DL ($8.6) is trading below our estimate of fair value ($14)
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 (13.5x) compared to the Consumer Services industry average (25.6x).
PE vs Market: DL is good value based on its PE Ratio (13.5x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: DL is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: DL is overvalued based on its PB Ratio (4x) 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?
23.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DL's forecast earnings growth (23.2% per year) is above the savings rate (1.7%).
Earnings vs Market: DL's earnings (23.2% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DL's revenue (13.4% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: DL's revenue (13.4% 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 (19%).
Next Steps
Past Performance
How has China Distance Education Holdings performed over the past 5 years?
-15.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DL has high quality earnings.
Growing Profit Margin: DL's current net profit margins (10%) are higher than last year (6.9%).
Past Earnings Growth Analysis
Earnings Trend: DL's earnings have declined by -15.7% per year over the past 5 years.
Accelerating Growth: DL's earnings growth over the past year (82.3%) exceeds its 5-year average (-15.7% per year).
Earnings vs Industry: DL earnings growth over the past year (82.3%) exceeded the Consumer Services industry 14.8%.
Return on Equity
High ROE: DL's Return on Equity (13.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is China Distance Education Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: DL's short term assets ($168.7M) do not cover its short term liabilities ($182.9M).
Long Term Liabilities: DL's short term assets ($168.7M) exceed its long term liabilities ($48.7M).
Debt to Equity History and Analysis
Debt Level: DL's debt to equity ratio (31.1%) is considered satisfactory.
Reducing Debt: DL's debt to equity ratio has increased from 16.9% to 31.1% over the past 5 years.
Debt Coverage: DL's debt is well covered by operating cash flow (212.4%).
Interest Coverage: DL's interest payments on its debt are well covered by EBIT (38.7x 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 4.4x debt).
Next Steps
Dividend
What is China Distance Education Holdings's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
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.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
CEO
Zhengdong Zhu (51yo)
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 ...
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
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$288.553m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DL | NYSE (New York Stock Exchange) | Yes | SPONS ADR | US | USD | Jul 2008 |
| 0CDA | DB (Deutsche Boerse AG) | Yes | SPONS ADR | DE | EUR | Jul 2008 |
Biography
China Distance Education Holdings Limited primarily provides online and offline education services, and sells related products in the People’s Republic of China. It operates in three segments: Professional Education Services, Business Start-Up Training Services, and The Sale of Learning Simulation Software. The company offers online professional education services in accounting, healthcare, and engineering and construction industries; and other professional education courses, such as online test-preparation courses for the legal professional qualification examination and self-taught learners pursuing higher education diplomas or degrees, and accounting practical skills training courses for college students and working professionals. As of September 30, 2019, it operated 43 Websites, including its primary Website cdeledu.com. The company also operates an Open Learning Platform, a proprietary education platform to share educational content and deliver live courses online; and sells proprietary books and reference materials. In addition, it provides business start-up training services to university students, job seekers, and individuals; offline accounting, tax, healthcare, and legal professional training services; courseware production and online platform development services; and mobile accounting, healthcare, engineering and construction, and legal courses through an app, as well as sells learning simulation software to the college market. The company was founded in 2000 and is based in Beijing, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 00:58 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.