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.

Risks

  • China Distance Education Holdings has significant price volatility in the past 3 months.
  • China Distance Education Holdings is covered by less than 3 analysts.

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

-8.2%

NYSE:DL

1.0%

US Consumer Services

-0.7%

US Market


1 Year Return

-49.8%

NYSE:DL

7.6%

US Consumer Services

-0.5%

US Market

DL underperformed the Consumer Services industry which returned 9.5% over the past year.

DL underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

DLIndustryMarket
7 Day-8.2%1.0%-0.7%
30 Day-17.6%1.0%-3.0%
90 Day-30.9%7.9%0.9%
1 Year-49.8%-49.8%11.3%7.6%1.7%-0.5%
3 Year-57.3%-60.7%109.0%97.3%39.5%30.4%
5 Year-69.3%-74.7%137.1%112.9%54.1%37.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Distance Education Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

China Distance Education Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

China Distance Education Holdings is good value based on earnings compared to the US Consumer Services industry average.

China Distance Education Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

China Distance Education Holdings is good value based on expected growth next year.


Price Based on Value of Assets

China Distance Education Holdings is overvalued based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

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

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Distance Education Holdings's revenue is expected to grow by 11% yearly, however this is not considered high growth (20% yearly).

China Distance Education Holdings's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).

China Distance Education Holdings's revenue growth is expected to exceed the United States of America market average.

China Distance Education Holdings's earnings growth is expected to exceed the United States of America market average.

China Distance Education Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if China Distance Education Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

China Distance Education Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

China Distance Education Holdings's 1-year earnings growth exceeds its 5-year average (119.8% vs -16%)

China Distance Education Holdings's earnings growth has exceeded the US Consumer Services industry average in the past year (119.8% vs 5.5%).


Return on Equity

China Distance Education Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Distance Education Holdings used its assets less efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

China Distance Education Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Distance Education Holdings's financial position?


Financial Position Analysis

China Distance Education Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China Distance Education Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Distance Education Holdings's level of debt (34.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (19.5% vs 34.8% today).

Debt is well covered by operating cash flow (111.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate China Distance Education Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Distance Education Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Distance Education Holdings has not reported any payouts.

Unable to verify if China Distance Education Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Distance Education Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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)

0.0yrs

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

No 3 month open market individual insider trading information.


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
BuyUS$705,54122 Aug 18
Zhengdong Zhu
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares82,920
Max PriceUS$8.51

Ownership Breakdown


Management Team

  • Mark Marostica (57yo)

    Co-Chief Financial Officer

    • Tenure: 0.0yrs
  • Baohong Yin (51yo)

    Co-Founder & Deputy Chairman of the Board of Directors

    • Tenure: 0.0yrs
  • Zhengdong Zhu (51yo)

    Co-Founder

    • Tenure: 0.0yrs
  • Philip Chan (48yo)

    Co-Chief Financial Officer

    • Tenure: 0.0yrs
  • Feijia Ji (45yo)

    Senior EVP & Director

    • Tenure: 0.0yrs
  • Liang Zheng

    Senior Vice President

    • Tenure: 0.0yrs

Board Members

  • Carol Yu (57yo)

    Independent Director

    • Tenure: 0.0yrs
  • Baohong Yin (51yo)

    Co-Founder & Deputy Chairman of the Board of Directors

    • Tenure: 0.0yrs
  • Zhengdong Zhu (51yo)

    Co-Founder

    • Tenure: 0.0yrs
  • Liankui Hu (68yo)

    Independent Director

    • Tenure: 0.0yrs
  • Xiaoshu Chen (56yo)

    Independent Director

    • Tenure: 0.0yrs
  • Annabelle Long (46yo)

    Independent Director

    • Tenure: 10.8yrs
  • Feijia Ji (45yo)

    Senior EVP & Director

    • Tenure: 0.0yrs

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$139.245m
  • 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 Analysis2019/08/19 00:25
End of Day Share Price2019/08/16 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.