Ambow Education Holding Ltd.
Find Ratings Reports
-0.09 |
-3.60%
AMBOW EDUCATION HLDGS's gross profit margin for the third quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. AMBOW EDUCATION HLDGS has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 39.66% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 18.0 | 16.08 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | -7.87 | -4.45 |
| Net Income ($mil) | -12.39 | -10.1 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 45.99 | 43.95 |
| Total Assets ($mil) | 160.02 | 153.6 |
| Total Debt ($mil) | 45.12 | 36.85 |
| Equity ($mil) | 14.83 | 24.57 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 7.57 | 24.49 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | -43.73 | -27.69 |
| Sales Turnover | 0.49 | 0.53 |
| Return on Assets | -8.07 | -5.04 |
| Return on Equity | -87.16 | -31.56 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 0.7 | 0.68 |
| Debt/Capital | 0.75 | 0.6 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 21.78 | 21.76 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.57 | -0.47 |
| Book value / share | 0.68 | 1.13 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 412269.0 | 788601.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 3.67 indicates a discount versus the S&P 500 average of 4.02 and a significant discount versus the subsector average of 17.41. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, AMBOW EDUCATION HLDGS proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AMBO NM | Peers 586.38 | AMBO NA | Peers 27.50 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. AMBO's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| AMBO NA | Peers 68.35 | AMBO NA | Peers 1.72 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| AMBO 3.67 | Peers 17.41 | AMBO -66.66 | Peers -236.31 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AMBO is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AMBO is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| AMBO 0.69 | Peers 8.19 | AMBO -3.35 | Peers 47.51 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AMBO is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AMBO significantly trails its peers on the basis of sales growth. |
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