LAIX (OTCPK:LAIX.Y) - Share price, News & Analysis

LAIX.Y fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

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.

Rewards

PE ratio (0.4x) is below the US market (15.2x)

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

Does not have a meaningful market cap ($4M)

Negative shareholders equity

LAIX Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LAIX
Historical stock prices
Current Share Price	US$1.10
52 Week High	US$31.50
52 Week Low	US$0.55
Beta	1.12
1 Month Change	-38.89%
3 Month Change	-86.69%
1 Year Change	-95.24%
3 Year Change	-99.16%
5 Year Change	n/a
Change since IPO	-99.38%

Shareholder Returns

	LAIX.Y	US Consumer Services	US Market
7D	4.8%	0.5%	-2.7%
1Y	-95.2%	-55.4%	-12.9%

Return vs Industry: LAIX.Y underperformed the US Consumer Services industry which returned -55.4% over the past year.

Return vs Market: LAIX.Y underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is LAIX.Y's price volatile compared to industry and market?
LAIX.Y volatility
LAIX.Y Average Weekly Movement	30.3%
Consumer Services Industry Average Movement	10.9%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: LAIX.Y is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 30% a week.

Volatility Over Time: LAIX.Y's weekly volatility has increased from 18% to 30% over the past year.

About the Company

Founded	Employees	CEO	Website
2013	736	Yi Wang	https://ir.laix.com/investors/our-company/default.aspx

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 that 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; 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 Cap	CN¥26.35m
Earnings (TTM)	CN¥59.91m
Revenue (TTM)	CN¥684.93m

0.4x

P/E Ratio

0.0x

P/S Ratio

Is LAIX.Y overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAIX.Y income statement (TTM)
Revenue	CN¥684.93m
Cost of Revenue	CN¥140.44m
Gross Profit	CN¥544.49m
Other Expenses	CN¥484.58m
Earnings	CN¥59.91m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	16.74
Gross Margin	79.50%
Net Profit Margin	8.75%
Debt/Equity Ratio	0%

How did LAIX.Y perform over the long term?

See historical performance and comparison

Valuation

Is LAIX undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.44x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

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 Ratio

PE vs Industry: LAIX.Y is good value based on its PE Ratio (0.4x) compared to the US Consumer Services industry average (17.1x).

PE vs Market: LAIX.Y is good value based on its PE Ratio (0.4x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: LAIX.Y has negative assets, so we can't compare its PB Ratio to the US Consumer Services industry average.

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

46.6%

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.

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 (-11.9%).

Return on Equity

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

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

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.

Discover strong dividend paying companies

Management

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

9.3yrs

Average management tenure

CEO

Yi Wang (40 yo)

9.33yrs

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 (9.3 years average tenure).

Board Members

Experienced Board: LAIX.Y's board of directors are considered experienced (6.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31