NYSE:ONE

Stock Analysis Report

OneSmart International Education Group

Executive Summary

OneSmart International Education Group Limited provides tutoring services for kindergarten and primary, middle, and high schools (K12) in the People's Republic of China.

Snowflake

Fundamentals

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

8.1%

ONE

-3.3%

US Consumer Services

0.07%

US Market


1 Year Return

-4.2%

ONE

25.0%

US Consumer Services

8.9%

US Market

Return vs Industry: ONE underperformed the US Consumer Services industry which returned 25% over the past year.

Return vs Market: ONE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

ONEIndustryMarket
7 Day8.1%-3.3%0.07%
30 Day0%-3.6%-0.3%
90 Day-8.4%-4.6%-1.6%
1 Year-4.2%-4.2%25.6%25.0%11.3%8.9%
3 Yearn/a97.1%86.6%46.3%36.8%
5 Yearn/a130.9%106.8%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is OneSmart International 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: ONE ($7.3) is trading below our estimate of fair value ($15.73)

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


Price To Earnings Ratio

PE vs Industry: ONE is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: ONE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ONE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ONE is overvalued based on its PB Ratio (8x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is OneSmart International Education Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

148.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ONE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ONE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ONE's revenue (28.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ONE's revenue (28.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ONE's Return on Equity is forecast to be high in 3 years time (36.4%)


Next Steps

Past Performance

How has OneSmart International Education Group performed over the past 5 years?

-77.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ONE is unprofitable, and losses have increased over the past 5 years at a rate of -77.5% per year.

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

Earnings vs Industry: ONE is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (3.9%).


Return on Equity

High ROE: ONE has a negative Return on Equity (15.66%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is OneSmart International Education Group's financial position?


Financial Position Analysis

Short Term Liabilities: ONE's short term assets (CN¥2.8B) do not cover its short term liabilities (CN¥3.4B)

Long Term Liabilities: ONE's short term assets (2.8B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: ONE's debt to equity ratio (146.8%) is considered high

Reducing Debt: Insufficient data to determine if ONE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ONE's debt is covered by short term assets (assets are 1.7x debt).


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 ONE has enough cash runway based on its current free cash flow.

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


Next Steps

Dividend

What is OneSmart International Education Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

2.7yrs

Average management tenure


CEO

Xi Zhang (44yo)

11.8yrs

Tenure

0

Mr. Xi Zhang has been the Chairman of the Board of Directors and Chief Executive Officer at OneSmart International Education Group Ltd since 2008. Mr. Zhang founded OneSmart in 2008. Prior to that, he serv ...


Management Age and Tenure

2.7yrs

Average Tenure

Experienced Management: ONE's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

44.5yo

Average Age

Experienced Board: ONE's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

BuyCN¥59,887,00003 May 19
The Carlyle Group L.P.
EntityCompany
Shares7,860,000
Max PriceCN¥7.65

Ownership Breakdown


Management Team

  • Xi Zhang (44yo)

    Founder

    • Tenure: 11.8yrs
  • Rebecca Shen

    Investor Relations Director

    • Tenure: 0yrs
  • Xiaoqiang Meng (45yo)

    Senior Vice President of Young Children Education Group

    • Tenure: 5yrs
  • Greg Zuo

    Chief Strategic Officer

    • Tenure: 0.3yrs
  • Todd Liang

    Chief Human Resources Officer

    • Tenure: 0.3yrs

Board Members

  • David Wei (49yo)

    Independent Director

    • Tenure: 1.6yrs
  • Jenny Zhang (45yo)

    Independent Director

    • Tenure: 1.6yrs
  • Zhizhi Gong (39yo)

    Director

    • Tenure: 2.1yrs
  • Xi Zhang (44yo)

    Founder

    • Tenure: 11.8yrs
  • Gong Yan

    Independent Director

    • Tenure: 0.7yrs
  • Greg Zuo

    Chief Strategic Officer

    • Tenure: 0.3yrs

Company Information

OneSmart International Education Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OneSmart International Education Group Limited
  • Ticker: ONE
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$1.172b
  • Shares outstanding: 160.54m
  • Website: https://www.onesmart.investorroom.com

Number of Employees


Location

  • OneSmart International Education Group Limited
  • 165 West Guangfu Road
  • Putuo District
  • Shanghai
  • 200063
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONENYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDMar 2018

Biography

OneSmart International Education Group Limited provides tutoring services for kindergarten and primary, middle, and high schools (K12) in the People's Republic of China. The company offers young children s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:43
End of Day Share Price2019/10/22 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.