China Education Group Holdings Ltd. (839) 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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Why is China Education Group Holdings Ltd. ?

Healthy long term growth as Net Sales has grown by an annual rate of 21.86% and Operating profit at 18.64%

With ROE of 14.35%, it has a Attractive valuation with a 0.44 Price to Book Value

Over the past year, while the stock has generated a return of -15.19%, its profits have risen by 7.4% ; the PEG ratio of the company is 3.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to China Education Group Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is China Education Group Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Education Group Holdings Ltd.

-100.0%

-0.82

47.02%

Hang Seng Hong Kong

18.06%

0.71

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.86%

EBIT Growth (5y)

18.64%

EBIT to Interest (avg)

6.71

Debt to EBITDA (avg)

1.36

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.22

Tax Ratio

12.90%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.83%

ROE (avg)

12.56%

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

0.44

EV to EBIT

4.73

EV to EBITDA

3.41

EV to Capital Employed

0.56

EV to Sales

1.71

PEG Ratio

3.05

Dividend Yield

0.33%

ROCE (Latest)

11.92%

ROE (Latest)

14.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

Not enough Data to analyse Financial Trend

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

Operating Cash Flow

Highest at HKD 7,753.53 MM and Grown

In each year 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 3,966.75 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Interest Coverage Ratio

Highest at 776.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at HKD 1,988.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Debtors Turnover Ratio

Highest at 7.92%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at HKD 565.91 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 565.91 MM has Grown at 16.28%

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 Education Group Holdings Ltd.

Debt-Equity Ratio

Highest at 29.59 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 6.31% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales