China East Education Holdings Ltd. (667) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Education Group Holdings Ltd.

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China East Education Holdings Ltd.

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Why is China East Education Holdings Ltd. ?

Weak Long Term Fundamental Strength with a 2.34% CAGR growth in Operating Profits over the last 5 years

The company is Net-Debt Free

Below par performance in long term as well as near term

Along with generating -19.71% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is China East Education Holdings Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China East Education Holdings Ltd.

-100.0%

2.57

47.72%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.14%

EBIT Growth (5y)

2.34%

EBIT to Interest (avg)

3.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.56

Sales to Capital Employed (avg)

0.68

Tax Ratio

21.67%

Dividend Payout Ratio

80.52%

Pledged Shares

Institutional Holding

ROCE (avg)

53.50%

ROE (avg)

5.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.97

EV to EBIT

10.05

EV to EBITDA

5.87

EV to Capital Employed

3.28

EV to Sales

1.90

PEG Ratio

0.21

Dividend Yield

ROCE (Latest)

32.63%

ROE (Latest)

10.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 3,232.5 MM

ROCE(HY)

Highest at 12.63%

RAW MATERIAL COST(Y)

Fallen by -19.29% (YoY

CASH AND EQV(HY)

Highest at HKD 4,356.86 MM

DEBT-EQUITY RATIO (HY)

Lowest at -39.33 %

INVENTORY TURNOVER RATIO(HY)

Highest at 33.13 times

DEBTORS TURNOVER RATIO(HY)

Highest at 20.7 times

DIVIDEND PER SHARE(HY)

Highest at HKD 20.7

NET SALES(Q)

Highest at HKD 2,659.89 MM

PRE-TAX PROFIT(Q)

At HKD 459.14 MM has Grown at 52.57%

NET PROFIT(Q)

At HKD 361.06 MM has Grown at 53.45%

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 171.82%

Here's what is working for China East Education Holdings Ltd.

Operating Cash Flow

Highest at HKD 3,232.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales

Highest at HKD 2,659.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Pre-Tax Profit

At HKD 459.14 MM has Grown at 52.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 361.06 MM has Grown at 53.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Cash and Eqv

Highest at HKD 4,356.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -39.33 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 33.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 20.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at HKD 20.7

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Raw Material Cost

Fallen by -19.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at HKD 335.59 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 335.59 MM has Grown at 7.6%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for China East Education Holdings Ltd.

Dividend Payout Ratio

Lowest at 171.82%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)