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LAIX

LAIX OTCPK:LAIX.Y Stock Report

Last Price

US$1.69

Market Cap

US$6.1m

7D

3.2%

1Y

-93.1%

Updated

27 Jun, 2022

Data

Company Financials
LAIX.Y fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends0/6

LAIX.Y Stock Overview

LAIX Inc., an artificial intelligence (AI) company, provides online English learning products and services in the People’s Republic of China.

LAIX Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LAIX
Historical stock prices
Current Share PriceUS$1.69
52 Week HighUS$28.00
52 Week LowUS$0.55
Beta1.13
1 Month Change20.92%
3 Month Change-55.10%
1 Year Change-93.05%
3 Year Change-98.85%
5 Year Changen/a
Change since IPO-99.04%

Recent News & Updates

Shareholder Returns

LAIX.YUS Consumer ServicesUS Market
7D3.2%3.5%6.3%
1Y-93.1%-49.0%-18.8%

Return vs Industry: LAIX.Y underperformed the US Consumer Services industry which returned -48.8% over the past year.

Return vs Market: LAIX.Y underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is LAIX.Y's price volatile compared to industry and market?
LAIX.Y volatility
LAIX.Y Average Weekly Movement35.8%
Consumer Services Industry Average Movement9.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: LAIX.Y is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 36% a week.

Volatility Over Time: LAIX.Y's weekly volatility has increased from 21% to 36% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013736Yi Wanghttps://ir.laix.com

LAIX Inc., an artificial intelligence (AI) company, provides online English learning products and services in the People’s Republic of China. It offers English Liulishuo app, which offers a suite of courses, including free courses for leisure learning, the paid personalized standard courses, DongNi English, and other paid courses, such as Authentic Pronunciation, as well as DongNi English A+ app; LiuLi Reading mobile app, which allows users to read articles from publishers supplemented by detailed learning tips and quizzes; and Kids Liulishuo, a mobile app that enhance the reading, hearing, and speaking abilities of kids. The company also provides IELTS Liulishuo app for IELTS speaking practice tests; LingoChamp mobile app; and enterprise learning services for corporate customers.

LAIX Fundamentals Summary

How do LAIX's earnings and revenue compare to its market cap?
LAIX.Y fundamental statistics
Market CapCN¥40.55m
Earnings (TTM)CN¥59.91m
Revenue (TTM)CN¥684.93m

0.7x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAIX.Y income statement (TTM)
RevenueCN¥684.93m
Cost of RevenueCN¥140.44m
Gross ProfitCN¥544.49m
Other ExpensesCN¥484.58m
EarningsCN¥59.91m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)16.74
Gross Margin79.50%
Net Profit Margin8.75%
Debt/Equity Ratio0%

How did LAIX.Y perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is LAIX.Y undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LAIX.Y?

Other financial metrics that can be useful for relative valuation.

LAIX.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does LAIX.Y's PE Ratio compare to its peers?

LAIX.Y PE Ratio vs Peers
The above table shows the PE ratio for LAIX.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.2x
AMBO Ambow Education Holding
19.4xn/aUS$8.7m
GEHI Gravitas Education Holdings
2.6xn/aUS$17.7m
WAFU Wah Fu Education Group
16.4xn/aUS$12.7m
FHS First High-School Education Group
2.2xn/aUS$24.3m
LAIX.Y LAIX
0.7xn/aUS$6.1m

Price-To-Earnings vs Peers: LAIX.Y is good value based on its Price-To-Earnings Ratio (0.7x) compared to the peer average (10.2x).


Price to Earnings Ratio vs Industry

How does LAIX.Y's PE Ratio compare vs other companies in the US Consumer Services Industry?

Price-To-Earnings vs Industry: LAIX.Y is good value based on its Price-To-Earnings Ratio (0.7x) compared to the US Consumer Services industry average (19.5x)


Price to Earnings Ratio vs Fair Ratio

What is LAIX.Y's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LAIX.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio0.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LAIX.Y's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of LAIX.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate LAIX.Y's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LAIX.Y's fair value for valuation analysis.


Price to Earnings Growth Ratio

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


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Future Growth

How is LAIX forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


44.3%

Forecasted Consumer Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as LAIX has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Take a look at our analysis of LAIX.Y’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access LAIX's filings and announcements here.

Past Performance

How has LAIX performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


9.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LAIX.Y has high quality earnings.

Growing Profit Margin: LAIX.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LAIX.Y has become profitable over the past 5 years, growing earnings by 9.1% per year.

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

Earnings vs Industry: LAIX.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (-10.4%).


Return on Equity

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


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Financial Health

How is LAIX's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LAIX.Y has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: LAIX.Y 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: LAIX.Y is debt free.

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

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

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


Balance Sheet


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Dividend

What is LAIX current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as LAIX.Y has not reported any payouts.


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Management

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

9.4yrs

Average management tenure


CEO

Yi Wang (40 yo)

9.42yrs

Tenure

Dr. Yi Wang serves as Chief Executive Officer & Chairman of the Board at LAIX Inc.


Leadership Team

Experienced Management: LAIX.Y's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: LAIX.Y's board of directors are considered experienced (6.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LAIX Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: LAIX Inc.
  • Ticker: LAIX.Y
  • Exchange: OTCPK
  • Founded: 2013
  • Industry: Education Services
  • Sector: Consumer Services
  • Implied Market Cap: US$6.060m
  • Shares outstanding: 3.58m
  • Website: https://ir.laix.com

Number of Employees


Location

  • LAIX Inc.
  • Building C2
  • No. 1687 Changyang Road
  • Shanghai
  • 200090
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.