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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Zonqing Environmental Ltd.

East Buy Holding Ltd.

MOG Digitech Holdings Ltd.

Medlive Technology Co., Ltd.

Lepu Scientech Medical Technology (Shanghai) Co., Ltd.

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 18.65%

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 10.79%, 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%

-0.94

47.14%

Hang Seng Hong Kong

8.25%

0.41

19.93%

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)

18.65%

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

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 8,004.54 MM

NET SALES(Q)

Highest at HKD 3,994.52 MM

CASH AND EQV(HY)

Highest at HKD 7,327.24 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.2 times

-7What is not working for the Company

DIVIDEND PER SHARE(HY)

Lowest at HKD 8.2

OPERATING PROFIT MARGIN(Q)

Lowest at 48.92 %

PRE-TAX PROFIT(Q)

Lowest at HKD -456.83 MM

NET PROFIT(Q)

Lowest at HKD 10.83 MM

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

Operating Cash Flow

Highest at HKD 8,004.54 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 3,994.52 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Cash and Eqv

Highest at HKD 7,327.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 8.2 times

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 604.05 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 604.05 MM has Grown at 6.7%

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.

Pre-Tax Profit

At HKD -456.83 MM has Fallen at -136.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Operating Profit Margin

Lowest at 48.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD -456.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 10.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -99.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Dividend per share

Lowest at HKD 8.2

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)