Ambow Education Holding Ltd.
Find Ratings Reports
-0.06 |
-5.00%
AMBOW EDUCATION HLDGS's gross profit margin for the second quarter of its fiscal year 2021 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. AMBOW EDUCATION HLDGS has weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 9.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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| Income Statement | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Net Sales ($mil) | 26.97 | 22.04 |
| EBITDA ($mil) | 0.0 | 0.0 |
| EBIT ($mil) | 3.12 | 0.01 |
| Net Income ($mil) | 3.44 | 0.68 |
| Balance Sheet | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Cash & Equiv. ($mil) | 39.91 | 29.23 |
| Total Assets ($mil) | 156.26 | 149.91 |
| Total Debt ($mil) | 42.83 | 46.69 |
| Equity ($mil) | 23.46 | 25.99 |
| Profitability | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Gross Profit Margin | 43.98 | 38.82 |
| EBITDA Margin | 0.0 | 0.0 |
| Operating Margin | 11.55 | 0.03 |
| Sales Turnover | 0.59 | 0.52 |
| Return on Assets | -6.28 | -7.09 |
| Return on Equity | -41.87 | -40.92 |
| Debt | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Current Ratio | 0.65 | 0.67 |
| Debt/Capital | 0.65 | 0.64 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q2 FY21 | Q2 FY20 |
|---|---|---|
| Shares outstanding (mil) | 23.33 | 21.8 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.14 | 0.03 |
| Book value / share | 1.01 | 1.19 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 172841.0 | 242219.0 |
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. For additional comparison, its price-to-book ratio of 1.16 indicates a significant discount versus the S&P 500 average of 4.74 and a significant discount versus the subsector average of 2.76. 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 21.25 | AMBO NA | Peers 807.87 | |||||||||||||||||||||
|
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 15.39 | AMBO NA | Peers 1.02 | |||||||||||||||||||||
|
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 1.16 | Peers 2.76 | AMBO 10.00 | Peers -17.06 | |||||||||||||||||||||
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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 0.29 | Peers 6.34 | AMBO 20.20 | Peers 22.27 | |||||||||||||||||||||
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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. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. AMBO is keeping pace with its peers on the basis of sales growth. |
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